As DHL Global Mail shuts the publishing sector of its operations Maxine-Laurie Marshall asks if this signifies another nail in the coffin of the long underused direct mail-out
When a major mail mover shuts down part of its bulk mail delivery operations, surely this isn’t a great sign for direct mail. DHL Global Mail has announced it will close its publishing sector operations – the function related to the wrapping and packaging of newspapers and magazines – in Q1 2012. The closure is likely to affect sites in Croydon, Bermondsey, Egham and Surrey. Commenting on the news, Mike Rawlins, head of communications for DHL Global Mail says, “We are one of the largest international movers of printed publications in the country, it is a significant action but it’s only part of what we do.”
While it’s not necessarily surprising to hear Rawlings claim that DHL’s decision is linked to the fall in print titles’ popularity as more of them move online, it still leaves a question mark over the future of the DM industry. Indeed DHL’s news is exacerbated by the constant stream of bad news coming from Royal Mail. The national mail service provider is currently in talks with Ofcom about raising the price of a second class stamp by 50 per cent; something that could harm the UK’s SMEs. Its letters business suffered a massive £120 million loss in 2011 and the year-on-year reduction of mail sent was estimated to be five per cent. Blaming the decrease in direct mail on reasons we are all familiar with, Rawlins adds, “I suspect marketers are also embracing new technologies and using email and social media to reach their target audiences.”
While this is true, does DHL’s decision signify the final nail in the coffin for B2B direct mail? Or rather that a change in approach is required?
New look DM
With the all-singing, all-dancing social sphere the place to be seen in, it’s easy to look at DM like it’s the hand me down jumper knitted by your nan. However, what was once old and unfashionable is in some quarters considered vintage and chic. Andrew Pearce, co-founder and CEO of conference call provider Powwownow, says, “As unfashionable as direct mail may be in the electronic age, it still very much serves a purpose, if conducted in a smart and aesthetically savvy manner.”
In agreement is Andy Taylor, managing partner of agency Outsmart, who has noticed a resurgence in DM lead by the clients rather than the agency. The way it’s used, however, has had to be adapted. He says, “Highly personalised and targeted DM has secured itself a niche as a channel.” And evolving technology is constantly enabling this for those businesses willing to leverage it, which means targeted DM is getting better.
Hard to ignore
Email inboxes are becoming increasingly overloaded. But is this the only reason DM is creeping back into fashion? Not according to Alexandra Hall, account director, at marketing services company Charterhouse, “More than any other channel, DM is incredibly successful at eliciting an emotive response at that first point of contact. Emails can be deleted without being read, phone calls can be ignored or gated by PAs, and tweets can get lost in the fast churning social media stream. DM that is personalised, with a highly targeted message and perfectly timed delivery, is hard to ignore.”
So, with some marketers saving DM from what was presumed to be an inevitable death, how do you create a successful campaign?
1. Target practice
The mass mailers of the 90s are no longer applicable when it comes to effective DM. Hall says, “Marketers have moved away from the old blanket or ‘scatter-gun’ tactic towards a highly targeted, data driven and integrated approach.” While this does mean sending less DM, better targeting means it will be more cost effective. However, Chris Wilson, managing director at Earnest, warns, “DM only works if data is absolutely correct.”
2. Get personal
Earnest is no stranger to the rewards of personalised DM. Winner of the best direct mail campaign and the overall Grand Prix at the B2B Marketing Awards 2011 – Earnest used hyper personalisation in the ‘I am’ campaign it created for Thunderhead. Aside from using the recepient’s first name, it identified specific business issues felt by each recipient’s company.
Wilson explains, “It’s important to show it isn’t a mass mailer, it doesn’t physically cost any more to gather this extra information but it does take more time and effort.”
3. Integration is key
Although Wilson says DM can achieve cut-through on its own, and in fact that’s why some marketers are favouring it over digital channels, he says, “You need someone on the phone to the recipients within 24 hours.” Further highlighting the importance of integration, Taylor says, “Gone are the days when you could send out a piece of mail and expect a response – it has to be part of a bigger picture with structured follow-up.”
4. Quality matters
It’s all very well noting the measures mentioned above but if you cut corners on the production of your DM it may well have been pointless.
Dathan Burden, operations director at direct mail house DP Direct says, “For B2B DM there needs to be a simple and clear message. Because a lot of companies restructured in the recession people are doing jobs that have nothing to do with their role; so the quality of the mailers being produced is slipping. If it’s not done right then it is just junk mail.”
5. Hybrid mail solutions
This is a solution some mail providers are now offering in order to stay in the DM game. DHL Global Mail, for example, is pushing these new solutions following its recent publishing sector closure. Instead of printing a direct mail piece locally then sending nationally or internationally, an electronic file is sent to the US, for example, printed there and delivered domestically.
While this method can work out cheaper and has obvious environmental benefits, it only seems viable for international DM or transactional mail such as bank statements.
Don’t write DM off just yet
Direct mail certainly isn’t dead, and to say it’s dying seems unfair – even if some mail services are. La Poste Group was surprised at DHL Global Mail’s announcement as it sees the market as positive. Ian Kavanagh, CEO of BTB Mailflight, part of the La Poste Group, says, “La Poste Group is actually investing money in added value services and international postal solutions.”
It seems direct mail is adapting, like the marketers using the technique. It is not, and most probably won’t be, used in the large quantities it was in the 90s but it’s not dead and buried.
Case study: Powwownow
Conference call providers Powwownow decided to test DM as a marketing channel to reach a new audience.
In September 2011, 2000 mailers were created; half of these were delivered in an envelope and the other half were delivered in a ribbon tied box. The idea was to test the effect presentation had on the success of the DM. The DM was followed up with a call and email.
The campaign had a 0.75 per cent conversion rate. The presentation box accounted for 60 per cent of conversions and the envelope 40 per cent. The campaign cost £16,000 and each premium customer brings in on average £1600, making Powwownow a profit.
Casey Williams, marketing manager for Powwownow, said, “We will certainly pursue direct mail in the future when communicating to a targeted audience and will also apply further thinking e.g. we would look to target certain verticals with relative creative to see if DM worked better in some industries than others.”
