Perfect partners: online media and direct mail

Research reveals that email and traditional direct mail have different strengths and weaknesses. That makes them most effective when used together, as Andrew Miller of the Royal Mail explains

In the UK today, 29.8m people are regularly logging on to the internet. Well over 80 per cent of the UK population has access to the internet and over 50 per cent are online every day. UK digital marketing spend hit £2bn in 2007.

Interactivity and digital sophistication continues to grow as consumers enjoy a richer online experience. Now that broadband is ubiquitous, consumers are benefiting from a more immediate experience and increased sharing of information on websites. Many are more willing to search for information online than make a telephone call.

We wanted to explore consumer perceptions of direct mail and email.

• What is the relationship between online media and traditional mail?
• How do consumers engage with a range of digital media - e-mail, online?
• What role does direct mail play in this?

So we asked customers about their perceptions of email and direct mail.

Focusing on attitudes to email, web advertising and direct mail, we wanted to find out how consumers engage with, and respond to different media. 781 consumers were interviewed in total (639 online users and 252 nationally representative individuals) during February 2007.

Consumers told us they...

• See a clear role for direct mail and digital - used on their own and in conjunction with one another
• Have clear views on how and when they want to be contacted
• Relate to the different channels in quite different ways
• Think both channels are useful for different purposes

Even those already confident on the web welcome direct mail.

Of the extremely confident web users:

• 66 per cent would like at least some contact by post
• 11 per cent would prefer to be contacted by direct mail only
• 55 per cent would prefer to be contacted by a combination of direct mail and online

Of confident web users:

• 69 per cent would like at least some contact by post
• 13 per cent would prefer to be contacted by direct mail only
• 55 per cent would prefer to be contacted by a combination of direct mail and online

Of less confident web users:

• 73 per cent would like at least some contact by post
• 9 per cent would prefer to be contacted by direct mail only
• 64 per cent would prefer to be contacted by a combination of post and online

Consumers see a clear role for direct mail and email - on their own and together.

• There's a place for post and email from companies - 84 per cent agree.

How direct mail and email mirror each other's strengths and weaknesses

Working together

• Direct mail and email support each other
• Messages deliver most when used together

Web users think that direct mail and online make each other more effective:

"I am more likely to remember something if it is communicated to me by post and online" - 69 per cent agree.

"I am more likely to read mail from a company if I have already seen advertising for the company online" - 56 per cent agree.

In summary, the combination of online and post creates real cut-through.

Email - speed, response, control

Good

• Share information with others
• Ease of response
• Appears sophisticated
• Is convenient
• Sends messages quickly
• Confirmation

Not so good

• Easy to ignore
• Makes recipient feel less valued
• Not physical/tangible

Direct mail - impact, value and action

Good

• Sensory, tangible
• Makes recipient feel valued
• Grabs attention
• Creates a good impression
• Retains information
• Provokes action
• Delivers detail
• Engages for longer

Not so good

• Immediacy
• Brief messages
• Cost implications

Together, direct mail and digital are greater than the sum of their parts

Direct mail and email are different, but they augment each other. Used together, they offer real benefits:

• Communications are more effective
• Messages cut through and hit home
• Direct mail supports and clarifies online activity
• Direct mail provides physicality, relationship and depth to digital's speed and convenience

The key business goals of finding new customers and growing and retaining existing customers can be achieved through a mixture of mail and email.

Customer acquisition

• Cold acquisition - when approaching customers for the first time email is considered inappropriate
• Spam is a growing problem
• 60 per cent have started ignoring email
• Consumers consider mail more appropriate for carrying detailed and important information on brands
• Email does have an important role to play in the acquisition process - particularly around follow-up activity such as converting enquiries.

Customer retention

• Mail is up to eight times more likely than email to make customers feel valued, although it does cost more
• A segmented approach to customer communication is appropriate - not only based on channel preference but also profitability and potential
• Arguably both email and direct mail should be used to handle complaints
• Email provides an opportunity to confirm receipt/ explain the complaints handling process without delay
• Mail is perhaps more appropriate for more important/sensitive messaging.

Customer development, up-selling and cross-selling

• Email is perfect for confirmations eg, that an order has been received or is being processed
• Mail is also valuable to consumers at this stage in the journey for thanking and welcoming, encouraging future business
• Getting to know customers is key - including their channel preference
• Surveys can be conducted via mail and/or email.

Mail marketing doesn't always work best alone, and the internet, for all its strengths, will struggle to break out of its "spam" niche. However, put physical and electronic media together and you can achieve great results.

More on direct mailing:

Hitting the target with email

Direct marketing

How to use direct mail