Mail's evolving role in today's utilities marketplace.

1. MAIL’S EVOLVING ROLE
IN TODAY’S
UTILITIES MARKETPLACE
Date
Audience

2.  The utilities sector and the role of mail
 The new news about mail
 Why use mail now
 Our products and services
WHAT WE WOULD LIKE TO
TALK ABOUT TODAY
2

3. UTILITIES AND
THE ROLE OF MAIL
3

4. THE UK ENERGY MARKET IS IN A STATE OF FLUX
WITH DEREGULATION AND NEW ENTRANTS
STARTING TO AFFECT THE DOMINANCE
OF THE “BIG SIX”
 Over the last 4 years, the dynamics of the gas and electricity
market have changed dramatically
• The number of energy companies has more than trebled
since 2010
Source: Annual Energy Statement 2014, DECC, October 2014
 Increased Government, regulatory and media scrutiny of energy
suppliers has led to a loss of public trust
• According to Ofgem, 43% of energy customers said that
they didn't trust energy suppliers
 New entrants are changing the market dynamics
• 3.8 million households (15%) have switched supplier
away from the big 6
 The price of domestic energy has risen by nearly 50% in the last
5 years and the average household now spends over £1,200 on
their annual energy bill
Source: 'Big six' energy firms lose further market share , BBC Business, 8 September 2014
Source: Guardian, 26 June 2014
4

5. THE BIG SIX STILL DOMINATE BUT THE
NEW ENTRANTS ARE STARTING TO MAKE AN IMPACT
 Added together, the large suppliers now have
92.4% of the market, down from 99.8% five years
ago
 In other words, independent suppliers have
increased their share from just 0.2% to 7.6% over
the same period
 The largest independent, First Utility, has grown
ten-fold in just three years, and now has more than
a million customer accounts
 Figures from independent research group Cornwall
Energy, show that customers have 3.8m accounts
with the smaller suppliers, and 45.9m with the Big
Six
Source: Energy UK Report October, Cornwall Energy, 2014
Centrica, 30%
E.ON, 14%
EDF, 10%
npower, 12%
Scottish Power,
9%
SSE, 17%
Other,
8%
Market Share (Revenue)
Source: GMI / Mintel, Market Share of Domestic Gas and Electricity Revenue in 2012, November 2013
5

6. Changed
supplier,
20%
Same
supplier,
New tariff,
23%
No
change,
55%
Don't
Know, 2%
ALTHOUGH PEOPLE SAY THEY DO NOT TRUST
OR ARE UNHAPPY WITH THEIR SUPPLIER, ONLY 20%
OF HOUSEHOLDS SWITCHED SUPPLIER LAST YEAR
 A recent Ofgem survey (April 2014),
showed that 50% of energy consumers
responding have never switched supplier
 Of those that do switch, the over-55s are
more likely to stick with the same supplier
but negotiate new tariffs, mainly fixed
 Younger consumers are more inclined to
switch suppliers
 And the wealthiest consumers are more
likely than average to switch since they are
more confident and savvy about financial
decisions
Base: 1,664 internet users, bill
payers, aged 16+ who are with an
electricity supplier
1,003.77
1,699.89
1,422.001,423.34
1,072.89
1,292.58
0
500
1,000
1,500
2,000
15-24 25-34 35-44 45-54 55-64 65+
By Age Group
2,382
2,105
1,561
1,867
0
500
1,000
1,500
2,000
2,500
3,000
AB C1 C2 DE
By Social Class
Source: GMI / Mintel , Change of
electricity supplier in the last 12
months, September 2013
Source: TGI, Kantar Media, April to June 2014
6

7. SWITCHING IS BECOMING EASIER
WHICH MAY LEAD TO A PEAK IN SWITCHING
 90% of people who switched last
year found it easy and with easier
switching being rolled out starting
November 2014 we expect to see
even more people switching
 Most switch to a new supplier due
to price deals or introductory
offers. Many stay with same
supplier but switch to a better
tariff.
 Poor service is what drives away
15% of switchers
 20% of switchers state moving
house as the trigger to switch
 Therefore there is an opportunity
for highly targeted personalised
offers to reinforce relationships
and keep existing customers,
especially as switching becomes
easier
Reasons for switching
Bill payers, aged 16+ who have changed gas or electricity supplier in the last 12 months
Source: GMI / Mintel, September 2013
“How easy or difficult was it to change gas supplier? If switched more
than once – please think about the last time.” 2013
4%
6%
26%
64%
0% 20% 40% 60% 80% 100%
Very difficult
Fairly difficult
Fairly easy
Very easy
Total
5%
7%
8%
8%
8%
15%
17%
17%
24%
0% 5% 10% 15% 20% 25% 30%
I changed to get 'greener' energy
Direct contact via email
Recommended by a friend
Saw / read about advantages
Doorstep / phone selling
Poor service from old supplier
To get an introductory offer or bonus
For same-supplier discount
I saw a cheaper deal advertised
Total
Source: GMI / Mintel, September 2013
7

8. KEY CUSTOMER FOCUSED TRENDS IN THE
 More innovation and differentiation PLUS increased customer control
• SMART meters, digital thermostats such as Hive and Nest,
bundled offers with energy services
 Service quality will be a key differentiator and energy utility companies
will use ever more sophisticated systems to ensure that their customers
are able to contact them using a wide variety of media
• Live web chats, increased social media
 Extras are also going to be a new battleground with companies adding
layers to rewards and loyalty discounts to build relationships with their
customers
 Brand building schemes such as charitable support and green initiatives
will be key to creating the best image to attract customers
 Greater database segmentation and targeted offers will play bigger
roles
ENERGY SECTOR
8

9. MAIL REMAINS A STRONG CHANNEL WITH ALL THESE
COMPANIES INCREASING MAIL SPEND LAST YEAR
Source: Nielsen Ad Dynamix, November 2014
9

10. MEDIA SHARE OF UTILITY ADVERTISING SPEND
 Utility companies tend to use an integrated approach to media
 Direct Mail accounted for 19% of all Utility advertising between November 2013 and October 2014, and door
drops 2%
Source: Nielsen Ad Dynamix, October 2014
Cinema
1%
Direct Mail
19%
Door Drops
2%
Internet
7%
Outdoor
8%Press
13%
Radio
19%
TV
31%
Utilities media spend November 13 to October 14
10

11. MAIL PLAYS AN IMPORTANT PART IN THE MARKETING
 5 out of the Big Six suppliers use mail as
an important part of their media mix (over
9% of their budget)
 Some focus more on acquisition but all
are growing their loyalty/retention
strategies
 The new entrants use a range of channels
to build their brands. Mail has been used
most frequently by Sainsbury’s and the
Co-op.
 As switching becomes more common all
companies will need to invest in loyalty
and retention and the role of targeted 121
communications will become increasingly
important
MIX FOR THE BIGGER SUPPLIERS, NEW ENTRANTS
ARE YET TO FULLY UTILISE THE POTENTIAL OF MAIL
Source: Nielsen Ad Dynamix, October 2014
0
20
40
60
80
100
Top 6 utilities % by media
TV
Radio
Press
Outdoor
Internet
Door Drops
Direct Mail
0
20
40
60
80
100
Ovo Energy First Utility Sainsburys
Supermarkets
Ltd
Cooperative
Grp
New entrants % by media
TV
Radio
Press
Outdoor
Internet
Door Drops
Direct Mail
Cinema
Source: Nielsen Ad Dynamix, October 2014
11

12. THERE ARE STRONG SEASONAL PATTERNS TO D2D
 Door drops tend to peak
around February to March,
May and September to
October
 Mail follows more of a
traditional peak around
November / December and
then March
AND MAIL USAGE WITHIN THE ENERGY SECTOR
Source: Nielsen Ad Dynamix, October 2014
3.8
0.2
3.3
14.3 12.6
5.8
24.2
2.1 3.1
0.0
19.6
10.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Door Drops % Volumes November 2013 to October 2014
18.3
36.8
2.3
6.0
12.0
3.6 4.0
1.8 1.2 1.5 2.6
9.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Direct Mail % Volumes November 2013 to October 2014
Source: Nielsen Ad Dynamix, October 2014
12

13. PEOPLE WHO SWITCH ENERGY SUPPLIER ARE VERY
MAIL RESPONSIVE
79% tend to open all
their post
64% have
responded to
direct mail in the
past year
18% more likely to
respond to mail than
the average adult
81% like to
receive money
off coupons,
vouchers or
discounts by
post
81% keep all
statements and bills
40% used a
coupon as a
result of receiving
mail
68% welcome mail
if its purpose is to
reward their loyalty
Source: TGI, Kantar Media, January to March 2014
13

14. MAIL / D2D HAS A STRONG ROLE TO PLAY IN
 Both addressed and unaddressed
mail can have a strong influence
on brand image for retention and
switching
 Addressed mail has a direct
impact on brand perception and is
complementary to other channels
– especially TV and online
SWITCHING AND RETENTION FOR UTILITY SUPPLIERS
Source: TGI, Kantar Media, July 2013 to June 2014
Behaviours of individuals who have changed energy supplier (both gas and
electricity) in the last 12 months
122
127
131
136
136
142
197
0 50 100 150 200
Subscribed/switched to a new
service as a result of unaddressed
mail
Passed a mail item to someone else
Bought or ordered something as a
result of addressed mail
Renewed an existing service as a
result of addressed mail
Kept and referred back to a mail
item
Did further research on a product
or service as a result of addressed
mail
Subscribed/switched to a new
service as a result of addressed mail
Index of 100
versus GB
population
14

15. THE MARKET DYNAMICS AND TARGETING
STRATEGIES OF ACQUISITION MAIL ARE REFLECTED
IN THE DIFFERENT MESSAGING APPROACHES
Source: Ebiquity, October 2014
Mail is used in acquisition, loyalty and cross / upsell. There has been definite growth of mail in loyalty & value added services.
Energy Services / Value AddedAcquisition Retention / Loyalty
15

16. INTERESTING TRENDS IN MORE DETAIL
Safety / Energy Advice
Charity Affiliations Listening / Customer Charters
Source: Ebiquity, October 2014
16

17. NEW ENTRANTS USE A MIX OF DIFFERENT
CHANNELS AND STRONG, BOLD ADVERTISING
MESSAGING TO STAND OUT
Source: Ebiquity, October 2014
17

18. CASE STUDIES SHOWING THE
EFFECTIVENESS OF MAIL AND
DOOR DROP IN THE MARKETING MIX
18

19. THE SCOTTISH GOVERNMENT ACHIEVED LONG-TERM
SAVINGS WITH HIGHLY TARGETED DIRECT MAIL
Background:
The Scottish Government needed to promote its free energy
savings service to a difficult to reach target audience - lower
income retired people who may be entitled to grants.
Solution:
Use mail to target these hard to reach, lower income, older
households who need to save energy but are wary of responding
due to suspicion of being mis-sold something.
Results:
The 9,264 responses equated to a 4.4% response rate: a 47% rise
on the 3% target.
Over 1,600 households passed the full eligibility criteria for EAP
assistance.
Source: DMA, Silver Winner, The Scottish Government, 2013
19

20. E.ON PRIMED EXISTING CUSTOMERS WITH A SMART
Background:
The UK government wants energy companies to install smart meters in
all households by 2019. E.ON wanted to trial communications to
ensure they understood the customer experience in order to ensure a
customer-centric roll-out.
Solution:
A direct mailing to existing residential customers to create interest and
get 50,000 meters installed. A question and answer approach was
used, clarifying, for example, the difference between a smart meter and
an energy monitor.
Results:
Mail achieved a 24% response rate and as a result, 55,000 meters
were installed. 76% reported being pleased to have received the
communication.
METER MAILING, TESTING KEY AREAS FOR ROLL-OUT
Source: Design Effectiveness Awards, E.ON, 2013
20

21. SCOTTISHPOWER COMBINE THE POWER OF
Background:
ScottishPower wanted to reduce customer attrition during
the critical first 90 day period and create an exceptional first
impression with a high level of customer service.
Solution:
A mail campaign to welcome and on-board customers was
created. Communications were tailored to the individual
customer with a media mix of print and personalised URLs.
Result:
Up to 50% of URL visitors completed feedback surveys,
demonstrating improved satisfaction levels and achieved a
39% reduction in attrition.
PERSONALISED MAIL AND ONLINE TO REDUCE CHURN
Source: DMA, Bronze Winner, ScottishPower, 2010
21

22. AN INTEGRATED CAMPAIGN TO PUT BRITISH GAS
Background:
Following privatisation, British Gas was pronounced Britain's
most popular brand. Twenty years later it was just another
energy company, losing 40,000 accounts every month.
Solution:
Insight revealed that people did not understand the breadth of
what British Gas could do for customers and their homes.
‘Looking after your world’ was launched in an integrated
campaign with TV, direct mail and print being the main channels
to market.
Results:
Generated £82.7m profit from a £45.5m investment giving a ROI
profit of £1.82m.
BACK ON THE MAP AFTER YEARS OF DECLINE
Source: British Gas, IPA Effectiveness Award Winner, Gold, 2012
22

23. CESPA USED MAIL TO GET THEIR BRAND FRONT OF
Background:
CEPSA wanted to reach out to customers in a memorable
way to secure their first winter fuel order.
Solution:
To highlight the benefits of enjoying winter thanks to CEPSA
heating products, customers received a flat-pack shoe box. A
website helped them customise a pair of slippers to fill the
box and showcased the company's products. The
personalised slippers were then mailed to customers.
Results:
CEPSA increased sales of central heating oil by 22% (1st
order) amongst clients and potential clients. More than 2.5K
customers received their personalised slippers at home.
MIND FOR FIRST FUEL ORDERS OF THE SEASON
Source: DMA, Bronze Winner, CESPA, 2011
23

24. EDF USED SEGMENTATION AND AN INTEGRATED
BRAND CAMPAIGN TO TARGET MAIL
AND DOOR DROP ACQUISITION
Background:
When EDF Energy stopped face-to-face selling, they lost their
largest acquisition channel. They needed to maximise the potential
of other channels.
Solution:
They wanted to target people who had not switched from their
competitors and shake them up. The breakthrough was category
changing brand messaging featuring ‘Zingy’, delivered via targeted
mail and door drop.
Results:
Sales delivered 30% higher than target, and cost per sale came in
23% lower than forecast. The data strategy worked as well, with 55%
of sales coming from customers who had never switched before.
Source: EDF, IPA Effectiveness Award Winner, Bronze, 2014
24

25.  It’s been proven to be the most emotionally engaging media
 People still enjoy receiving it
 It has increasing standout in a digital world
 It is highly valued by people
 It is omnipresent in people houses
 It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
25

26. THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME,
HEART AND HEAD

27. 27

28.  12 Ethnography households
 14 Focus groups
 99 Depth interviews
 213 Neuroscience / biometric participants
 401 BrandScience’s ‘Results Vault’ cases
 416 IPA Effectiveness Databank cases
 1,000+ Academic articles reviewed
 9,504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
28

29. DEVELOPED IN 8 STRANDS
 Ethnography
 Post ethnography survey
 Multisensory Communications: review of academic literature
 Tactility
 Values: Best Mail
 Mail and Digital 1 & 2
 Neuroscience
 ROI/Effectiveness metrics
29

30. MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
30

31. 31

32. MAIL GETS OPENED – AT HIGH RATES
Statement, bill or information update
Brochure from a company they have ordered from before
Letter – promotion or special offer
Letter – about a product/service they don’t have
Leaflet without an address about a product/service
Leaflet without an address about a promotion/offer
Brochure from a company not ordered from before
83%
71%
69%
60%
59%
54%
54%
OPEN
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 32

33. MAIL’S JOURNEY ISN’T OVER WHEN
Adults read their mail on average for 22 minutes a day.
IT HITS THE DOORMAT
1.15PM: Collects mail and brings it into the
home with other bags and belongings
1.30PM: Opens mail whilst doing other jobs
2.15PM: Opens parcel
2.30PM: Uses laptop to get details on a piece
of mail received
5.30PM: Uses laptop again to get further
details on the piece of mail from earlier
8.30PM: Brings catalogue into lounge to read
Source: IPA Touchpoints 5 (Data based on Monday – Saturday morning)
Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 33

34. PEOPLE GIVE MAIL TIME
Mail is kept for extended periods, creating a constant presence in the home.
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 34

35. AND SPACE
80% of adults kept some mail that
companies had sent them in the last four
weeks.
 ‘The Holding area’ where it is kept
before being dealt with
 ‘The Pile’ for mail that has been read
and will be revisited
 ‘The Display area’ for useful or
important items (local information,
time limited offers)
Display Area
Pile
Holding area
Source: TGI, Kantar Media, 2014
Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 35

36. MAIL GETS DISPLAYED
39% of people have a dedicated display area for mail in the home
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 36

37. MAIL IS SHARED
An average of 23% of mail is shared within a household.
Brochure from a company I have ordered from before
Statement, bill or information update
Letter – about a product/service they don’t have
Brochure from a company not ordered from before
Leaflet without an address about a promotion/offer
Letter – promotion or special offer
29%
24%
25%
23%
22%
21%
SHARE
Average of 23%
of mail shared
within a household
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 37

38. MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70%
“I feel that I
receive too
many
emails”*
*Source: Royal Mail MarketReach, Mail and
Digital Part 1, Quadrangle, 2013
**Source: Litmus Email Analytics, 2013Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Mail stands out due to the proliferation
of digital messages
3%
3%
22%
72%
48%
18%
19%
15%
0% 20% 40% 60% 80%
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a
day?
Email
Mail
51%
of emails are
deleted within
two
seconds**
38

39. INCREASINGLY MAIL IS DRIVING PEOPLE’S
43%
download
something
54%
engaged in
social media
87%
influenced to
make online
purchases
92%
driven to online
or digital activity
86%
connected with
business
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Question asked(S4Q1): How often have you done each of the following online as a direct
result of receiving mail from a business or organisation. Base: All (n=2,375)
DIGITAL BEHAVIOUR
As a direct
result of
receiving
mail
39

40. MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
40

41. 41

42. 42

43. TOUCH CREATES A POWERFUL
 When people can both see and
touch something, they value it
24% more highly than if they
can only see it.
 Over a third of people say that
the physical properties of mail
influence how they feel about
the sender.
EMOTIONAL RESPONSE
+22% +24%
2.75 2.73
3.36 3.38
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale.
Source: Peck, Joann, and Suzanne B. Shu. The Effect of Mere Touch on Perceived Ownership. Journal of Consumer Research, 2009; IPA Touchpoints 5, 2014 43

44. PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63%
57%
55%
18%
17%
25%
(% True of Mail vs. True of Email)
MAIL EMAIL
Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 44

45. MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
45

46. 46

47. 47

48. THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV.
TO MAIL THAN TO TV OR EMAIL
Source: Royal Mail MarketReach, Neuro-Insight 2013
168
202
172
127
165
130
105
113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Indexvs.'Normal'restingbrain
MAIL EMAIL TV
48

49. IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source: Royal Mail MarketReach, Neuro-Insight, 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term Memory
Encoding
Indexvs.responsefromfirstexposure
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
49

50. MAIL IN THE WALLET
HOW MAIL MAKES MONEY
50

51. MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mail
Source: Royal Mail MarketReach BrandScience, 2014
0
2
4
6
8
£
RROI (Revenue ROI)
51

52. Total ROI increased 12% when mail was included in the mix.
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source: Royal Mail MarketReach, BrandScience 2014; advertiser cases including mail versus cases without mail.
4.22
4.63
5…
4.73
4.93
6.31
1
2
3
4
5
6
7
Total Comms TV Print
RROI
RROI-NO MAIL RROI-WITH MAIL
52

53. MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences. When mail is
added to the schedule
versus email on its own
Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 53

54. INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were:
 27% more likely to deliver top-
ranking sales performance
 40% more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013
+27% +40%
45%
30%
57%
42%
0%
10%
20%
30%
40%
50%
60%
Sale Acquisition
%Clientslistingtopperforming
improvements
RROI - NO MAIL RROI - WITH MAIL
54

55. WITH MAIL IN THE MIX, MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers.
2.9xMarket share growth
for all clients
3.4xMarket share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail.
Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013 55

56. MAIL IN ACTION
EDF
56

57. EDF USED TARGETING AND CHARM TO
MAKE CONSUMERS FEEL ZINGY ABOUT ENERGY
Background:
EDF Energy was facing many challenges. Operating in a low interest commodity
category, the industry had the lowest amount of switching since records began. When
EDF Energy stopped face to face selling, they lost their largest acquisition channel. They
therefore needed to maximise the potential of other channels.
Solution:
EDF wanted to reach people who had not switched from their competitors and shake
them up. But a new angle was required to engage the audiences.
EDF had launched a new ATL brand positioning ‘Feel Better Energy’ with the brand
character ‘Zingy’. This offered the perfect opportunity for a radical change in direct
marketing.
Launching its biggest ever direct campaign, EDF used Zingy to persuade people to open
and engage with the new brand messages. Direct mail , door drops, inserts and direct
response print were deployed to convert awareness into action.
Sources: AIS London, IPA Effectiveness
Bronze Award 2014, Marketing Week
Engage Award Gold 2013,
57

58. EDF REACHED KEY AUDIENCES AND
Results:
This was the most successful campaign EDF Energy had ever run, giving
them a new route to a previously unresponsive audience.
EDF reached their 2012 year-end sales objective three months early. The
campaign achieved a record breaking 43,000 calls and19,500 direct sales,
exceeding sales targets by 30%.
Short term incremental gross profit showed that every £1 spent on the
campaign generated £2.36. Cost of sale was 23% lower than target,
making direct marketing a feasible acquisition channel for the first time.
EDF won c.25% of all market switchers making EDF the fastest growing
B2C energy supplier in the UK. 55% of sales came from customers who
had never switched before. 73% of consumers who responded to the
direct campaign said they wouldn’t have switched if they hadn’t received
the direct marketing.
The long life of mail was proved by the fact the it was still generating calls
three months later.
CHANGED BEHAVIOUR
Sources: AIS London, IPA Effectiveness
Bronze Award 2014, Marketing Week
Engage Award Gold 2013,
58

59. IN SUMMARY
 Mail brings a brand into the home where it is kept, displayed, and/or shared
 Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
 Mail makes your message more memorable
 Mail drives successful return on investment
 When used in integrated campaigns, it can provide a measurable media multiplier effect
 Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible, motivated and connected partner to you and your
marketing agencies.
Media and
Data
Planning
Bespoke
Research
and Insight
Data
Provision
Distribution
59

60. 60

61. BIG DATA IS DRIVING MORE 121 DIRECT
 Data is driving more 121 and personalised interactions.
 Trigger based communications based on actual and future behaviour change.
 There is a strong role for highly targeted personals mail in this space.
 Less short termism and more longer term ROI.
COMMUNICATION
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62. ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality: Online / offline
integration
VideoPaks
Sensory Mailings: Taste & smell
increases tangibility
Interactive print
Digital templating: cheaper, faster
& more personalised
QUICKER, CHEAPER & MORE IMMERSIVE MAILINGS
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63. NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for
machine readable
Business, Advertising and
Publishing Mail
Technology
Sorting machines that
read the new barcode
and collect mail data
Reporting
Mail Analytics that reports
on volume, compliance,
predicted delivery and
overall performance
Ultimately generating more efficiency, greater transparency and
measurement for your mail campaigns
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64. WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
• Best case for mail
• Test matrix
• ROI
• Contextualise within
the media mix
• Addressed/
unaddressed mail
1. Review your
competitive set.
2. Understand the key
dynamics of your
sector,
3. Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues.
• Acquisition
• Loyalty
• Retention
Understand the key
issue
Sector experts gather
insight
Recommendation
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65. Royal Mail, the cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd.
Royal Mail Group Ltd 2014. Registered Office: 100 Victoria Embankment, London EC4Y 0HQ.© Royal Mail Group Ltd 2014. All rights reserved.
THANK YOU
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