by Cassandra Balentine
With all of today’s innovations in communications, tried-and-true methods sometimes make the most impact, especially when reimagined.
Above: Xerox Iridesse Production Press, Xerox Versant Presses, and Xerox PrimeLink digital printers produce specialty colors—beyond four-color printing—to create embellishments and provide an opportunity for value-added production techniques.
Direct mail has its challenges, including cost. However, by embracing new technologies, marketers are able to lower volumes and focus on targeted audiences with high-value pieces that make an impact.
“With the oversaturation and reliance of digital, combined with screen and marketing fatigue, there is a real opportunity in the nearly empty mailbox,” points out Brad Kugler, CEO/co-founder, DirectMail2.0.
Lisa Weese, senior director, marketing, Canon Solutions America, production print solutions, sees several trends in the mail space, including an increase in postcards—especially oversized; more frequent use of quick response (QR) codes in marketing mail; higher demand for recycled or FSC-certified papers; subscription box service, including numerous direct mail pieces within; embellishments—making direct mail a multi-sense experience and taking advantage of U.S. Postal Service (USPS) promotions; more personalization and relevant content, which tend to increase engagement; and a move towards opti- or omni-channel campaigns centering around direct mail.
“After COVID we saw a noticeable increase in postcards and self-mailers, but recently there has been growth in letter packages. Smart direct mail printers handle a range of formats and also offer integration with digital marketing platforms to generate multi-channel, multi-touch campaigns,” shares Marc Johnson, senior global market development manager, HP PageWide.
Mark Pomerantz, director of sales and marketing, North America, Xeikon, notices a movement towards tight analytics and use of QR codes for everything in marketing mail.
Marketing Mail Evolution
A growing number of marketers integrate direct mail with digital channels and launch opti- or omni-channel campaigns.
“These two mediums prove to be highly complementary, with combined campaigns typically outperforming those utilizing a single channel. Digital channels often yield modest response rates, prompting many marketers to incorporate direct mail to boost potential revenue from their target audience,” shares Ray Van Iterson, director, brand mail, marketing, USPS. “Direct mail commands a higher return on ad spend (ROAS) due to its elevated response rates. To optimize engagement, marketers frequently time their digital promotions to coincide with the delivery of direct mail pieces, enhancing exposure without significantly increasing costs.”
Advancements in marketing automation platforms and retargeting technologies are pivotal in facilitating these sophisticated omni-channel strategies, enabling seamless integration between direct mail and digital communications, explains Van Iterson.
Chris Lien, EVP, postal affairs, BCC Software, agrees, noting that astute marketers seek ways to bridge the high touch of direct mail with strategically targeted and timed high-tech messaging. For example, with USPS Informed Visibility data and advanced mail tracking solutions, marketers can send email and SMS text messages while the mailpiece is en route to the end recipient.
Since a typical mailpiece’s Intelligent Mail barcode is scanned on average seven times from its USPS induction point to final destination, Lien explains that a series of progressive messages can be sent to build anticipation of arrival. “It’s also worth noting that over 60 million addresses have at least one person subscribed to the USPS Informed Delivery program, which sends a daily email of what is arriving in their mailbox. This effectively means that every mail service provider has the potential of offering some type of multi-channel marketing campaign.”
There are other ways to integrate technologies for maximum impact, including variable data inkjet printing, automation in mail production and sorting, to digital marketing integration, tracking information, like QR, SMS, and other identifiers as well as hypertargeting, segmenting, and direct mail retargeting. “Today, if someone isn’t doing a few, if not all of these items, they are a dinosaur on the eve of extinction in direct mail,” cautions Kugler.
Billy Stojanovski, global production portfolio marketing manager, Xerox, also notes an increase in personalization and relevance, which is driven by client data and triggering events like an abandoned product in a cart or a request for more information to drive an action. “Direct mail pieces now often include value-added elements such as linking the printed piece to a digital or omni-channel campaign with data reporting. In addition, print service providers are using embellishments beyond simple four-color output and specialty finishing such as custom sizes, embellished envelopes, and additional stand out elements to capture attention.”
Finishing solutions like MBO America’s FC23/30 allow inline additions of various coatings including gloss, matte, satin, soft touch, and more to inkjet webs.
Unlike first class mail, Scott Eganhouse, VP, business development, TEC Mailing Solutions LLC, says marketing mail is enjoying a bit of a resurgence and expects it to grow this year with the election season. “If there’s a trend it would be smaller mailings that are more targeted in nature; many of them trigger based on an event. This can be a single piece because a prospect behaved in a certain way or an event like a hailstorm that requires geographic targeting as an example.”
Eganhouse stresses that each of these use cases demand expediency and speed to the mailbox, which requires automation, fewer touch points, and a 24-hour turnaround. “What’s more, these trigger-based mailers fundamentally change the traditional direct mail model that often leverages a saturation strategy, which controlled postal spend as a byproduct. While the per-piece spend may be higher, trigger-based mailings are often far easier to apply an attribution model making it far easier for marketers to gauge the return on investment (ROI).”
By now, personalization, QR codes, pURLs, and data analytics should no longer be seen as a trend but part of the legacy fabric that’s enhanced the viability of direct mail. “Having said that, personalization continues to evolve into new realms such as olfactory, scent being a powerful analog to one’s experiences and memories,” says Eganhouse.
The upcoming election cycle will be a great example of artificial intelligence (AI) being leveraged in a meaningful way to engage with electorate with highly targeted copy. “It’s an exciting time to see how AI will alter the marketing landscape and direct mail specifically, the election use case is here today and will provide ideation for years to come on the best way to leverage AI,” comments Eganhouse.
Digital Print Benefits
Trends in direct mail reflect shifting customer habits. “Direct mail businesses are increasingly focused on enhancing the value of printed materials by prioritizing shorter runs of highly customized and targeted pieces. Recent data shows that more premium, high-end direct mail marketing materials are more effective than generic mail,” says Fred Morrone, senior manager, product marketing, Kyocera.
From an equipment market perspective, William Longua, senior director, Digital Print Group, Quadient, points out that the breakdown of color printing equipment versus monochrome printing equipment purchased skews higher toward digital inkjet color printers.
“This trend has continued into 2024 and, as we provide faster and more cost-efficient technology, I expect it to continue,” notes Longua. “When I look in my mailbox, there is a much higher proportion of personalization on larger 9×12-inch mailers and packets, followed by pressure-seal mailers. These are more expensive and convey an investment by the sender to reach their target audience, increasing the perceived value.”
Tim Murphy, president, Printware, sees a need for print and addressing on demand, offering the speed necessary to handle smaller, more complex jobs.
On the finishing side, Mark Hunt, director of strategic alliances, Standard Finishing Systems, notes continued high demand for equipment that helps direct mail producers manage costs, whether that be highly automated equipment that reduces the labor burden in a particular shop or paper processing equipment that allows direct mail producers to avoid purchasing pre-processed paper. “Marketers continue to demand highly customized pieces that use premium substrates and embellishments, and direct mail producers look to meet this demand while contending with a shrinking labor pool, high paper costs, and increased postage expenses,” says Hunt.
Personalization is key. Johnson sees tremendous growth here, but stresses this means more than a name and address, but rather truly personalized and relevant customizations. “Offers are being customized to very targeted prospects—demographically as well as individually. The old adage—the right offer, at the right time, to the right customer—is now being realized at scale thanks to the ability to produce one-to-one pieces economically at incredible speeds. We are seeing more complicated programs that incorporate imagery based on age, family status, geography, and a range of lifestyle data, and also the ability to speak to prospects in their preferred language throughout the entire piece.”
Julie Brannen, director of regional sales and sustainable solutions, Monadnock Paper Mills, Inc., sees a significant trend in direct mail today for personalized, data-driven communication that’s produced on high-quality, sustainable substrates. “Brands use digital printing technology to create personalized mailers that stand out.”
Brannen adds that this personalization is complemented by eco-friendly substrates, which allow brands to deliver impactful, tactile, and environmentally responsible direct mail that resonates with their target audience while supporting the sustainability values of their brand.
“The need to stand out in direct mail had meant that on top of the personalized messaging, advertisers need to stand out in design, look and feel, material, and color,” comments Amir Shalev, market development director, Landa Digital Printing.
“This is leading to a push for print quality, color, and expanded paper and board usage for direct mail applications. As personalized volumes grow, a gap is created between the static ability of offset presses and the relatively low volumes out of smaller inkjet machines.”
Downtrending
Some areas of direct mail show great promise, other aspects are downtrending.
“What isn’t working is doing the direct mail routing of ten years ago,” says Kugler. This includes just ink on paper with no other technology bundled up with it; using a spray-and-pray method; failing to test, test, and test again—audiences, creative, the message, and the imagery that converts; and thinking that because a message or angle worked once, it will work forever. “Marketing fatigue is real. Watch the results and the numbers,” shares Kugler.
Stojanovski feels that static, non-personalized direct mail lacking any follow-up or reporting capability is on the decline. “The ‘spray and pray’ approach does not deliver the results clients are looking for,” he asserts.
Hunt continues to see a decline in the number of direct mail providers using cutsheet monochrome production printers and continuous-feed toner printers. “Roll-fed inkjet and the latest generation of color cutsheet presses are more efficient, better meet the quality and productivity demands of the market, and more cost effective at scale. These new presses also integrate more easily with the digital infrastructure required to create value-added, variable data direct mail pieces,” he states.
Aligned with the trends in the sector, Morrone feels that the traditional approach of large-scale mailings, without personalization, is declining. “These larger runs of unqualified mailings for marketing purposes have proven to be less effective in communicating with customers. Therefore, it is no surprise we are seeing such a decline.”
In general, direct mail volumes have continued to drop. “In addition, generic, mass-mailed campaigns that lack personalized content are declining because recipients now expect direct mail to address their unique interests. Brands relying on generic and unsustainable materials are finding it difficult to capture attention and maintain brand loyalty. In contrast, digital printing and sustainable substrates empower marketers to tailor each mailer to the individual, fostering stronger engagement and delivering more meaningful, eco-friendly message,” comments Brannen.
Johnson admits that mass-mail campaigns have shown the biggest decline. “We know that direct mail has a higher response rate versus digital-only campaigns, but the ever-increasing postage costs force marketers to carefully evaluate ROI. Mass-mail that isn’t well targeted doesn’t perform as well as highly personalized and targeted mail. Given the relatively small increase in cost to personalize, with a significantly higher response rate, it makes sense to move towards higher performing campaigns.”
Weese adds that while the decline in traditional statement printing is slowing, it’s still declining. “By comparison, marketing mail is trending upwards. Catalogs have also picked back up after years of decline,” she notes.
Sustainability and cost concerns led advertisers to examine closely the printing methods, as well as being selective in printing and measuring their ROI constantly, comments Shalev.
While the opportunity of multi-channel marketing is real and more accessible than ever, overall market spend for direct mail is declining. “The latest USPS Household Diary Study reflects a continued decline from nine percent in 2015 to four percent in 2022,” shares Lien.
There also appears to be a significant decline in tabbed booklets and self-mailers. “This has more to do with the complexity and cost involved in producing them versus the response rates generated,” says Longua. “Mailers are still getting their information to the audience, but they are shifting how they are doing it. They are using envelopes to hold the collateral and stay in compliance for automation discounts or shifting to glue or pressure sealed mailers.”
There is also an shift in skilled workers and the tools producing direct mail.
With the labor shortage, Murphy points to a need for simpler workflows and cross training for digital operations.
Legacy postal software isn’t keeping up with the demands of the current environment. “Mailings that are trigger-based often create less dense mailings and minimize the savings potential, which is the point of mailing software,” suggests Eganhouse.
He says print service and marketing service providers should always be in control of a client’s data, which means they should CASS, NCOA, and present it to a co-mingle provider in a meaningful way if a cost savings strategy is desirable. “This means your postal software should have the schema of each co-mingle provider to easily process data without going through unnecessary setup. Doing so gives your co-mingle provider the ability to ‘single pass’ mailings through their system, which gives you better negotiating power with the co-mingle providers,” adds Eganhouse.
Making Mail Work
While direct mail is a proven marketing method, the rules of the game have changed. “Marketers refine their strategies through advanced data utilization, shifting from broad, indiscriminate campaigns to more targeted, precise communications,” says Van Iterson.
Where in the past, marketers would distribute their messages to large segments of the population, they now identify their most promising prospects with greater accuracy and tailor their outreach accordingly. “This shift has led to an increase in targeted omni-channel campaigns that engage these selected prospects across multiple platforms, rather than deploying less effective single-channel campaigns on a wide scale,” concludes Van Iterson.
Even with increased costs of postage, direct mail is a winning strategy with the right combination of tools.
Jul2024, DPS Magazine
