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					Return of Invest on Mailing Campaigns


                               Robert Stahl

     Sales Director Direct Mail – International Emerson Polska



                  Riga, 26th November 2008

                   Return on Invest of Mailing Campaigns
Direct mailing is the most popular direct marketing tool in Europe.
Customers like individual, unique and colorful offers by post.


Total spending on promotional mailings 2008 in Germany:
14,3 Billion Euro. (fully or partly addressed, door drop)
Advertisement: 13,1 Billion Euro

Fairs: 12,8 Billion Euro.
*Dialog Marketing Monitor 2008, Germany

for comparison only: Latvia government budget about 4 billion Euro




                                      Return on Invest of Mailing Campaigns
The presentation will show:

1. What branches use direct mailings for communication with their
   clients
2. Budget planning and fast success control of mailing campaigns
   after mail date
3. Right selection of target groups
4. Cost optimization (postal fee, addresses, production of mailings,
   timing, co-operations)
5. How to improve response rates of direct mailings
6. Samples of very successful direct mailings
7. Useful practical recommendation for successful mailings



                       Return on Invest of Mailing Campaigns
1. What branches use direct mailings for communication with
   their clients
2.   Budget planning and fast success control of mailing campaigns after mail date
3.   Right selection of target groups
4.   Cost optimization (postal fee, addresses, production of mailings, timing, co-operations)
5.   How to improve response rates of direct mailings
6.   Samples of very successful direct mailings
7.   Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
    Direct Mailing Users
•   Mail order companies
•   Publishing houses
•   Telecommunication
•   Financial institutions: banks, insurance companies, investment funds,
    leasing companies
•   Retail (supermarkets, boutiques)
•   Lottery
•   Automobile industry
•   Charities (fundraising)
•   Service providers
•   …

                              Return on Invest of Mailing Campaigns
1.   What branches use direct mailings for communication with their clients

2. Budget planning and fast success control of mailing campaigns
   after mail date
3.   Right selection of target groups
4.   Cost optimization (postal fee, addresses, production of mailings, timing, co-operations)
5.   How to improve response rates of direct mailings
6.   Samples of very successful direct mailings
7.   Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
What are the costs of a mailing? (in this case quantity of 20000 pieces)



Position                 Cost / 1000                   Sum
Addresses                100 €                         2000 €
Creation, Art work                                     2000 €
Production               150 €                         3000 €
Postage                  250 €                         5000 €
Total cost                                             12000 €




                             Return on Invest of Mailing Campaigns
Assuming a response rate of 2 % we receive the following results:

Positon                            Figures
Amount of addresses                20000
Response rate                      2%
Cost per contact (CpC)             0,60 €
Cost per order (CpO)               30,00 €



Conclusion:
You must have at least 30,00 € profit on each order to reach
the break-even-point!!!


                         Return on Invest of Mailing Campaigns
Break-even forecast for mailings


    day                                1       2           3          4          5          6        7    8     9
    quantity                                   2           7         24         28         37       48   39    34
                                                                                                              219



                                                    Success of mailing
                                  60

                                  50
               amount of orders




                                  40

                                  30

                                  20

                                  10

                                   0
                                           1   2       3       4       5       6      7         8   9
                                                                     days



                                                   formula: (∑ days 1 to 7 + 2 days) x 2



                                               Return on Invest of Mailing Campaigns
Was the mailing campaign profitable?
A high response rate does not necessarily mean that the mailing is
successful! The success always depends on the quality of response.

Formula for planning your response rate:

Response rate in % = cost per mailing item x 100 : profit margin

Example 1: 0,60 € x 100 : 10 € = 6 %

Example 2: 0,60 € x 100: 50 € = 1,2 %




                     Return on Invest of Mailing Campaigns
Planning of the mailing


•   suitable day (mail date)
•   right moment (season, weather, payment, contract etc.)
•   avoid bad season (summer holidays)




    Take enough time to prepare your mailing!




                      Return on Invest of Mailing Campaigns
1.   What branches use direct mailings for communication with their clients
2.   Budget planning and fast success control of mailing campaigns after mail date

3. Right selection of target groups
4.   Cost optimization (postal fee, addresses, production of mailings, timing, co-operations)
5.   How to improve response rates of direct mailings
6.   Samples of very successful direct mailings
7.   Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
„Only if you know very exactly expectations, attitudes and needs of your
clients you will be able to present the right offer to the right potential
customer“
*Gabriele Baron: Mailings einfach und erfolgreich durchführen, 1997, S.23



Analyze purchase reasons of your clients and use these criteria to select
the target group of your mailing!




                                  Return on Invest of Mailing Campaigns
Target group selection due to the following indicators:

1. Geographical segmentation: country, state, region, town
2. Socio-demographical attributes: age, sex, education, family
   status, family size, income, profession, social level
3. Psychographic attributes: personality, character, life style,
   attitudes
4. Attributes of behavior: choice of shopping place, brand
   loyalty, frequency and intensity of product use
5. B2C: purchase power, place/region of living, purchase
   behavior, decisive person in household
6. B2B: field of business activity, branch, turnover + amount of
   employees, decisive person




                      Return on Invest of Mailing Campaigns
Address sources for your mailing


1.   Participant list in fair or conference catalogues
2.   Reader‘s letters in specialized journals
3.   Mercantile directories and telephone books
4.   Official data in trade registers
5.   Register office
6.   List broker
7.   Own database
8.   Exchange of customer addresses, partner campaigns




                      Return on Invest of Mailing Campaigns
1.   What branches use direct mailings for communication with their clients
2.   Budget planning and fast success control of mailing campaigns after mail date
3.   Right selection of target groups

4. Cost optimization (postal fee, addresses, production of mailings,
   timing, co-operations)
5.   How to improve response rates of direct mailings
6.   Samples of very successful direct mailings
7.   Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
       Postal fee: size, weight, minimum quantity

Post            Product          Maximum Size         Weight             Minimum    Price / item   Delivery
                Mailing                               best price         Quantity                  time
Deutsche Post   Infopost         125 x 235 mm         20 g               4000       0,25 €         D+4

Austrian Post   Infomail                              20 g               400        0,24 €         D+4

La Poste        Destineo Level   229 x 324 mm         35 g               5000       0,277 €        D+5
                4+
Royal Mail      Mailsort 1400                                            4000       0,276 €        D + 4-7

Correos                                                                  500        0,23 €         D+7

Selektmail                                            20 g                          0,27 €         D+3

Sandd                                                 20 g                          0,198 €        D+3

Poland          Przesyłka        60 cm 3 sides        50 g               20         0,34 €         D + 14
                reklamowa
                Promotional                           20 g                          0,315 €
                letter                                                              (0,22 Ls)



                                         Return on Invest of Mailing Campaigns
Addresses


1. Use your own sources – possibilities to collect leads
   (clients database (former clients), bookkeeping, advertisements, fairs,
   e-mail contacts)
2. Exchange addresses with non competitors, who have the same or
   comparable target groups
3. Buy test addresses
4. Prefer product affinity rather than available complexe record
   information




                          Return on Invest of Mailing Campaigns
  Production, timing, co-operation



• Produce technically similar projects together
• Collecting smaller amounts of each country allows to achieve better
  production prices of the mailing. Mail sort must be done separately,
  different Mail Dates and lead times.
• Various data base structures must be adopted and optimized for
  personalization and mail sort
• Individual computer planning reports, line listings, posting-dockets
• Partner (two complementary brands) mailings help to reduce production
  costs; e.g. Reader‘s Digest – AIG Insurance Company




                         Return on Invest of Mailing Campaigns
1.   What branches use direct mailings for communication with their clients
2.   Budget planning and fast success control of mailing campaigns after mail date
3.   Right selection of target groups
4.   Cost optimization (postal fee, addresses, production of mailings, timing, co-operations)

5. How to improve response rates of direct mailings
6.   Samples of very successful direct mailings
7.   Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
How to improve response rates of direct mailings (1)


 1. Test databases before you send out the main mailing; use up to
    10000 addresses
 2. Test the layout, parts and creation of your mailing with test persons
 3. Use early birds
 4. Implement lottery if possible
 5. Place a very interesting product on the front side of the envelope
    (exclusive or very cheap)
 6. Send mailings the way they arrive Friday/Saturday at the client
 7. Mail invitations or new information not more than 10-14 before the
    event or new catalogue
 8. Make sure that you are able to handle response (call center, post,
    orders) and that your good are available in the planned quantities
    on stock



                         Return on Invest of Mailing Campaigns
How to improve response rates of direct mailings (2)

Samples of mailing boosters (3 D elements, clover-leave, hand written
  font, window on back side of envelope)




                         Return on Invest of Mailing Campaigns
How to improve response rates of direct mailings (3)


Samples of mailing boosters (key fob, labels, one lucky penny)




                         Return on Invest of Mailing Campaigns
How to improve response rates of direct mailings (4)


Samples of mailing boosters (3 D element)




                        Return on Invest of Mailing Campaigns
1.   What branches use direct mailings for communication with their clients
2.   Budget planning and fast success control of mailing campaigns after mail date
3.   Right selection of target groups
4.   Cost optimization (postal fee, addresses, production of mailings, timing, co-operations)
5.   How to improve response rates of direct mailings

6. Samples of very successful direct mailings
7.   Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
Rubber fish mailing (Paul Parey)




                       Return on Invest of Mailing Campaigns
Candle Mailing (DPAG)                             176 countries, 480.000
                                                  items, 15 trucks!




                        Return on Invest of Mailing Campaigns
3-D glasses mailing (Multimedia)




                       Return on Invest of Mailing Campaigns
Customer card mailing with indicator (Multimedia)




                       Return on Invest of Mailing Campaigns
Your car with your registration number! (RD)




                       Return on Invest of Mailing Campaigns
Tea Mailing (RD)




                   Return on Invest of Mailing Campaigns
Invitation Mailing (Swarovski – Wattens), part I




                        Return on Invest of Mailing Campaigns
Invitation Mailing (Swarovski – Wattens), part II




                        Return on Invest of Mailing Campaigns
Gourmet Mailing (Knorr)




                      Return on Invest of Mailing Campaigns
Sunshade Mailing (Reppa)




                     Return on Invest of Mailing Campaigns
1.   What branches use direct mailings for communication with their clients
2.   Budget planning and fast success control of mailing campaigns after mail date
3.   Right selection of target groups
4.   Cost optimization (postal fee, addresses, production of mailings, timing, co-operations)
5.   How to improve response rates of direct mailings
6.   Samples of very successful direct mailings

7. Useful practical recommendation for successful mailings




                                   Return on Invest of Mailing Campaigns
Useful practical recommendation to create succesfull mailings


1. Test your mailing before you send out the main quantity
2. Test only two different materials against each other
3. Spend much time on address selection and cleaning
4. Pay attention to postal rules, costs
5. Be original, pioneer
6. Don‘t change successful mailings and run them for years, many times
7. Use additional incentives as gifts, label, flavors, coins, keys, glasses,
   samples, sachets
8. Multi-Personalization, full personalization as Last Name, Region,
   Place of Living, Journal, Pictures, individualized gifts
9. Your ideas…




                          Return on Invest of Mailing Campaigns
 Robert Stahl
  Sales Director Direct Mail International / Emerson




 Any questions? Ask now!!




                                                                                            r.stahl@emerson.pl
                                                                                            tel. +48 606 889 050
                                                                                            www.emerson.pl
                                                                                          www.logisticcity.pl
                                                                                        www.platiniumpark.pl
                                                                                           www.focuspark.pl




                                               Return on Invest of Mailing Campaigns
Emerson from bird‘s eye view
Return on Invest of Mailing Campaigns

				
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