The document discusses direct mail marketing and the role of paper communication. It provides insights from various studies and surveys that show: 1) Direct mail is still an important driver of sales and builds strong customer relationships through personalization. 2) While consumers are exposed to thousands of digital ads daily, direct mail stands out due to its tangible nature and lower frequency of receipt. 3) An integrated multi-channel approach using both digital and paper-based direct mail is most effective for customer engagement and driving the highest returns.

3. Media Mail DM consultancy Multi sectorial approach > 250 projects/year Fact based insights (>100.000 interviews B to C & B to B) Strategical support Impactstudies

5. bpost: some general information

7. bpost: an operational business

9. 3 formats SMALL LARGE SPECIAL

10. The challenges of Direct Mail?

11. “ PAPER COMMUNICATION IS AN IMPORTANT DRIVER FOR FUTURE BUSINESS.”

12. FACT: 60 billions of sales are directly related to Direct Mail colruyt Source: BDMA – Size of the direct marketing market in Belgium (2009) Direct Mail drives business

13. FACT: Integrated with other media DM increases the ROI of your campaigns with at least 20% Brand perception Sales activation Boosting of ROI Loyalty building DM is a strong sales activator Integrated with other media DM increases the ROI of your campaigns with at least 20% DM builds strong long term relations with your customer DM improves brand perception High recall rate DM gets high recall rates even of complex messages 1 2 3 4 5 15% to 200% extra sales >25% more loyal customers Source: Post – 15 DM pilot surveys N: > 25.000 2 to 20 times better recall >50% of brand attributes improved Consumers are strongly being activated by Direct Mail

15. Response rates by sector Direct Mail works % Internal addresses % External addresses Retail 8,22% 6,69% Services 10,48% 4,08% Catalogues 6,72% 4,33% Press 5,07% 4,82%

16. “ PAPER IS THE DIRECT MARKETING MEDIUM OF THE FUTURE.”

17. Addressed Direct Mail represents 10% of gross media spending Mass Media (CIM MDB) Direct Mail (Pige DM) Sources (03/02/2010): CIM-MDB, Mediaxim (Mass Media); DM Pige Mediaxim-Post (Direct Mail) 9,9% Gross Media investments 2009 (in mio eur)

18. Impact Source: Mindshare - Henley Centre (and TNS Media & Post survey) 200 TV ads 150 radio ads 1000’s of ambient ads ... Weekly number of advertising messages per capita 20 e-mail ads 3 cinema ads 400 press ads/inserts 350+ outdoor ads 2+ DM pieces Opportunity for Direct ! More than 3.000 messages / day 52 get attention 4 are positively remembered

19. The MAIL MOMENT… 97% opens mailbox every day … but receives only 2 DM/ week 78% is opened Consumers spend 1’52’’ per mail … and behind every letterbox is a unique person you can target Source: Study Mailmoment, bpost, MAS 2005

20. Involvement Source: Synovate-Censydiam, 2007 … to be appreciated as a customer … to have a connection with the brand … to be appreciated … to be important to the brand … to be unique 73% 19% 63% 8% 52% 8% 57% 7% 51% 7% DM gives me the feeling … DM Other media (average)

21. Decreasing physical contacts urge for new touchpoints/engagement DISCOVER Evaluation of alternatives DEAL Purchase DESIRE Need recognition/ Problem Awareness DELIGHT Post purchase

22. Case : DESIRE Dbase mgt combined to the power of hyper-personalisation © bpost - DM Discovery 8 - 30.08.2010

23. The power of hyper-personalisation © bpost - DM Discovery 8 - 30.08.2010

24. 1 to 1 personalisation increases results © bpost - DM Discovery 8 - 30.08.2010 Source: 1 to 1 Lab – Xerox – Stratégies - bpost 1 to 1 Lab  Global Conversion Funnel Traffic creation x10 Communication Recall = 74% Want to act = 39% POS traffic = 15-20% POS conversion x3 Offers = 12% Sales profit +++ Sales = 6%

25. Case : POSTPURCHASE The quality of invoicing has an impact on both the customer experience as on cross and upselling

28. Case : postpurchase – tactical Cross-selling/upselling

29. Case : postpurchase – strategic Loyalty

30. Regelmaat baat

31. “ Do you feel you receive too many Direct Mail? ” 82% say no, only 18% say yes Only a few do not want free unaddressed publicity in their mailbox. FACT: Consumers ask for more paper communication People like paper as medium 13,6% Source: study ‘E loves p’: bpost – TNS Dimarso, n=1150, 2007

33. “ ONLINE IS THE NEW DIRECT MARKETING MEDIUM BUT WITH A LOWER COST.”

34. DM is an ROI driven medium The cost of DM

38. DM is an ROI driven medium DM vs e-mailing Email marketing benchmarks 2010 IAB

39. Source: Market research on 1800 customers, utility sector case Received DM/Email Recall DM/Email Read DM/Email Correct recall content Paper mail 100% 49 49 55 27 81 22% E-mail 100% 28 28 57 16 75 12% Direct mail is more effective throughout the media funnel leading to an 83% higher content recall rate compared to e-mail FACT: Paper Mailing generates a better content recall than e-mail Paper mail has by far more effect on the long run

41. Direct mail vs email

43. How DM supports e-business? Source: UNITED STATES POSTAL SERVICE (USPS) – results tests % of orders on the website supported by catalogues % of orders on the website with e-mails % of orders on the website supported by a flyer  15%  13%  8%

44. “ PAPER MARKETING HAS MORE IMPACT ON THE ENVIRONMENT THAN E-MARKETING.”

46. Google = 1,5 mio servers (2% op wereldschaal) 7 gr CO2 per search 2 google searches = CO2 nodig om waterketel op te warmen

48. The DM Carbon meter and the life cycle of a DM

50. Input screen

51. Result screen

52. De keuze van papier en de gebruikte inkt kan een positieve invloed hebben op de ecologische impact

53. Het resultaat : Van 227 naar 135 g CO2 per mail. Winst 41% !

54. 10 golden rules

55. What influences a campaign Mediamix Segmentation Creative execution Proposition Timing

56. What influences a campaign? The right offer at the right person at the right time

60. Wie schrijft mij? Waarvoor is het? Waarom naar mij? Waarom moet ik dit lezen? Ben ik hierin geïnteresseerd? Wat kost het? Wat moet ik doen? Rule 1: WIIFM?

64. Impact on cost Impact on creation Impact on impact NAL Socio demo (generation!) Transactional Lifestyle, Lifestage Purchase intention

70. Rule 5: think out of the box

81. Card mailing (DtD)

82. Card mailing (DtD)

84. Interact Bon terugsturen Fax Internet site

85. Ga langs Maak afspraak Bel naar

86. Interact Telefoontje

94. One day …

95. Same day

96. 2 weeks later

97. 2 weeks later

98. With adapted visuals An Didier

99. Few weeks later

101. DM 2.0

102. DM 2.0 Beta coefficient of DM

103. Media in the future… See more – remember less Number of media is proliferating 3 screen convergence Attention fragmentation is increasing, 2 senses Clutter is increasing Scanning & skimming No time to go in depth

104. DM 2.0 Behavioural targeting Beta coefficient of DM

105. Behavioural targeting

106. DM 2.0 Media-mix improvement based on segmentation Behavioural targeting Beta coefficient of DM

107. Media evolution leading to new segmentation necessities on the level of media-mix Digital Illiterates Digital Immigrants Digital Natives

108. Gap between consumers’ channel preferences and marketing spendings 18-34 year olds prefer to learn about marketing offers via postal mail and newspapers Epsilon/Icom august 2010 High level of trust!

112. DM 2.0 Integration of technology Media-mix improvement based on segmentation Behavioural targeting Beta coefficient of DM

113. Purl’s

114. QR

115. Augmented reality

116. DM 2.0 Integration of technology Web to print Variable data personalization Media-mix improvement based on segmentation Behavioural targeting Beta coefficient of DM

117. Web to print

118. Variable data personalization

119. Segmentation

120. DM 2.0 Integration of technology Web to print Variable data personalization Cross-media Media-mix improvement based on segmentation Behavioural targeting Beta coefficient of DM

121. DM 2.0 Integration of technology Web to print Variable data personalization Cross-media 5 senses Media-mix improvement based on segmentation Behavioural targeting Beta coefficient of DM

122. DM 2.0 Integration of technology Web to print Variable data personalization Cross-media 5 senses Media-mix improvement based on segmentation Branded content : customer magazines Behavioural targeting Beta coefficient of DM

123. DM 2.0 Integration of technology Web to print Variable data personalization Cross-media 5 senses Media-mix improvement based on segmentation Branded content : customer magazines The art of sequencing Behavioural targeting Beta coefficient of DM

124. Viral DM : the art of sequencing, integrating social media Segmentation based on profile Personalized DM including PURL Microsite including coupon Like, push to social media Register Response rate >200%

125. WAT HEBBEN WE VANDAAG GELEERD

127. Rudy Van Halle