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PODi AppForum Exceeds Expectations – Again

February 1st, 2012

I’m not sure how they manage to do it year after year, but the PODi AppForum continues to exceed my expectations. This year’s event pulled together some of the industry’s brightest thought leaders to create an amazing combination of content and community.  As a testament to the content of this year’s AppForum, everyone who attended my recap session was a first-time attendee and they all said they would return next year. If you weren’t able to make the event, you can view photos on the Facebook page or see what others had to say about this year’s event on Twitter.

The keynote speakers were amazing. The message from Ken Schmidt roared louder than a Harley-Davidson – quality, service, and cost are simply table stakes. Marketers and marketing service providers must figure out how to differentiate themselves if they are going to win in this rapidly changing marketing environment. The only way to possibly improve his session would have been to pay tribute to Oprah by giving a Harley-Davidson to everyone in the audience.

Please forgive the reference to their old slogan, but Valerie Vargas from AT&T reached out and touched every member of the audience when she explained how one of her biggest challenges – and therefore the challenge to her marketing service providers – is doing a lot more with a lot less. Everyone was nodding their head throughout her presentation.

Finally, John Leininger’s presentation was one of my favorites because it combined a bit of the dramatic flair of Las Vegas with hard science. His presentation on eye-tracking software showed what a person looks at first, second, third when viewing a printed ad or direct mail piece, and how long they looked at it. He documented how changing colors, images and type size has an impact on the effectiveness of a design.  Do you know what was most effective in creating an impact?  Sorry, but you’ll have to attend next year’s AppForum to get that type of information!

-Debora Haskel
Vice President–Marketing

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.

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Is 2012 the Year of Direct Mail?

January 25th, 2012

Critics of direct mail have been predicting its demise for years. But three recent reports, including Ballantine Corporation’s annual “Direct Marketing Trends” white paper, Epsilon’s “2011 Channel Preference Study” and the Winterberry Group’s “Outlook 2012: Trends in Direct and Digital Marketing,” indicate otherwise. It appears that 2012 is positioned to be a year for growth in direct mail. In fact, the Winterberry Group expects direct mail spending to increase 2.5% in 2012.

Three major trends are supporting the increasing popularity of direct mail.

  • Crowded inboxes. One of the driving forces increasing direct mail’s popularity is consumers’ bulging email inboxes. We’ve discussed this trend when targeting Millennials, but the recent Epsilon study shows that email fatigue is common among many more consumers. Of surveyed consumers, 65% reported receiving too many emails. 50% of U.S. consumers also reported preferring direct mail to email. For marketers, these findings illustrate that to fight through the clutter, direct mail is a smart way to go.
  • Consumer interest in mail. A study cited in the Ballantine white paper uncovered promising trends in consumer behavior for direct mailers:
    - 85% of consumers sort through and read selected mailpieces each day
    - 75% of consumers are examining mail more closely
    - 40% have tried a new business after receiving direct mail
  • Innovations enhance effectiveness. The latest innovations in design and printing have allowed for more relevant, targeted and memorable direct mail pieces. The Ballantine white paper emphasizes the importance of utilizing tools to enhance targeting and personalized to more effectively reach audiences. IWCO Direct’s Mike Dietz has discussed some of the creative trends and services that increase open and response rates.

These industry trends and consumer behavior reports indicate marketers can make the most of their 2012 marketing budgets by embracing direct mail as a very relevant, successful and often preferred marketing channel.

- Joe Morrison
President

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.

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Postage Changes Coming

January 18th, 2012

2012 CPI-based Price Increase Takes Effect this Weekend

Don’t forget that the Postal Service’s 2012 price change takes effect this Sunday, January 22. Unlike past years, the Postal Service is adjusting prices for both Market Dominant and Competitive products at the same time, which means the Market Dominant increase is falling three months earlier than it did last year. (Market Dominant products include First-Class and Standard Mail, while Competitive products are largely expedited services and parcels.)

The average overall increase for Market Dominant products is about 2.1%. Increases for automation-compatible letter mail are close to the average, while increases for flats and parcels are generally higher than the overall average. Charts of the most common prices used by marketers are available here.

Other notable features of the price change include:

  • Discounts for Destination Entry (Standard Mail) and Full-Service Intelligent Mail (Standard and First-Class) remain unchanged.
  • Automation and presort First-Class letters qualify for “second ounce free” pricing, with no additional ounce charge until the piece reaches two ounces. However, second ounce free does not apply to flats or single-piece letters.
  • The Postal Service will waive annual permit fees ($190) when 90% of the mail volume processed through that permit meets Full-Service standards.

Will There be an Exigent Price Increase?

The request for an exigent price increase first filed by the Postal Service in July 2010 seems to have finally run its course, and we don’t expect an exigent increase in 2012.

Although the Postal Regulatory Commission (PRC) rejected the initial request, the Postal Service appealed the ruling to the Court of Appeals. The Court remanded the case back to the PRC for a clearer definition of what is required to document the need for additional funds is “due to” the unexpected circumstances cited as the cause of the shortfall. When the PRC provided that definition, the Postal Service filed a response indicating that it wanted to pursue the case and asked the PRC to keep the case open indefinitely until postal reform measures currently under consideration in Congress could be acted upon. The PRC response to that request essentially requires the Postal Service to resubmit the entire case if it is to move forward. The Postmaster General has indicated that he does not intend to submit additional information to the PRC.

While the Postal Service could revive this case, postal industry observers do not expect them to do so, nor is it expected that the Postal Service will file a new exigent request this year.

Paying Postage with Credit?

You may have seen recent headlines in industry news sources, such as “Direct mailers no longer need to prepay postage,” in reference to a recent PRC ruling that allows the Postal Service to enter into Negotiated Service Agreements (NSAs) with customers regarding alternative postage payment methods. While the headlines are literally true, they are a bit premature.

The PRC ruling simply confirmed the Postal Service’s right to enter into such agreements and approved, in concept, a template agreement on which the Postal Service can base client-specific NSAs. Each individual NSA must be negotiated separately with the Postal Service, and in the past, NSAs for Market Dominant products (such as First-Class and Standard Mail) have taken one to two years to negotiate. While the approval of a template document may speed negotiation of NSAs related to alternative payment methods, the Postal Service has yet to provide guidance to mailers regarding how they want to approach these agreements and what the specific process will be to create such an agreement.

IWCO Direct continues to monitor developments related to this opportunity. Be sure to check back often as we keep you informed of the latest issues related to the Postal Service and their impact on direct mail.

- Kurt Ruppel
Marketing Services Manager

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.

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Let’s Junk the Term Junk Mail – Changing the Perception of Direct Mail

January 11th, 2012

For many years our industry has had to live with the unfortunate term “junk mail.” It’s short and memorable, but also incorrect. Yet the term “junk” has stubbornly shaped the perception of direct mail for the general public. When people use the term, they typically refer to unwanted solicitations that are unrelated to their needs or interests and may not even be addressed to them. I even get the impression some marketing executives wouldn’t use direct mail at all if it didn’t have such identifiable and undeniable ROI.

In some respects it’s easy to beat up on direct mail. It’s not as new or glamorous as the latest social media platform. And as an industry, we need to do a better job promoting direct mail’s unique ability to acquire customers and enhance engagement and loyalty.

Direct mail has become increasingly sophisticated. It not only drives value for organizations through greater ROI, data indicates that direct mail remains an important channel for customer acquisition, engagement and loyalty. Some of the factors that tell us direct mail is not “junk” include:

  • Technical advancements, such as full-color variable data personalization at reasonable prices, make direct mail even more relevant to its recipients than ever.
  • Highly targeted mailing lists ensure consumers receive mail that is meaningful to them.
  • Marketers and printers work very hard to be good stewards of the environment.
  • Recent studies, such as the one conducted by Epsilon, indicate 50% of U.S. consumers prefer direct mail to email. This study also reported one-quarter of consumers find direct mail more trustworthy than email.

Perhaps as an industry we need to elevate the discussion beyond issues such as ROI for marketers, because today’s sophisticated direct mail is also having a positive impact on people’s lives. We see this almost daily in our clients’ direct mail programs. For example:

  • Direct mail has been a key to opening the door to health and wellness programs that are helping people lose weight, stop smoking and get more active. This in turn is helping to lower our nation’s healthcare and insurance costs.
  • Loyalty programs from retailers and airlines are helping consumers manage their money better, and direct mail is an important part of keeping consumers updated on the reward points they have earned and providing them with ideas on how they can be redeemed.

These are just a few of the ways direct mail is helping businesses and consumers be successful. As we head into 2012, it’s time we change the perception of direct mail to match reality. While all marketing channels are relevant and important, including direct mail as part of the mix is critical to the future success of leading marketers.

-Pat Deck
EVP & CMO

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.

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PODi AppForum Set To Kick-Off

January 4th, 2012

Now that you’ve recovered from New Year’s Eve, it’s time to look ahead to the next reason to celebrate – the 2012 PODi AppForum. The theme for this year’s event is “Sparks Will Fly,” as attendees will learn about all the latest trends to succeed through cross media, Print on Demand, Web-to-Print and digital packaging.

The AppForum is one of my favorite events of the year because it provides a great opportunity to learn new sales strategies and gather insight into the latest trends so you can shine at your next client presentation. If that’s not reason enough, you’ll also expand your network and catch up with old friends. Not to mention, the warm(er) weather of Las Vegas is always a nice treat for most of us this time of year.

This year’s lineup of keynote speakers is especially exciting:

  • Ken Schmidt, communications strategist for Harley-Davidson Motor Company, will discuss the need to differentiate by being unpredictable.
  • AT&T’s vice president of advertising, Valerie Vargas, will focus on making direct mail a cornerstone of a company’s communications efforts, how to keep it relevant and how to integrate it with other channels.
  • The final keynote is Rab Govil, president of Caslon, who will peer into his crystal ball to explain what the future holds for direct marketing and what the new media landscape will look like.

This year also marks a personal trifecta for me, as I’ve been selected as Track Chair for the third year in a row. I will be chairing the brand new Cross Media Toolkit Track, which will focus on cross media strategies. Presentations include:

  • Cross Media Marketing 101
  • QR Codes: Connecting Print and Mobile
  • Innovations in Print Design that Engage Response (a presentation I’m excited to co-present)
  • Using Data Enhancement to Increase Response Rates
  • Boost Your Marketing Impact with Eye Tracking Analysis

You can find more information about all the Tracks and sessions on the AppForum site. If you’ll be in Las Vegas for the event I hope you’ll stop by and say hello. If you’re still on the fence, there is still time to register.

I hope to see you all soon!

-Debora Haskel
Vice President–Marketing

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.

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