Role of Direct Mail in developing the Mail Order business. by Raquel Ferrari Project Manager, Direct Mail

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Role of Direct Mail

in developing the

Mail Order business

by Raquel Ferrari

Project Manager, Direct Mail

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Direct Mail Value Chain

Direct Mail plays a key role in the mail order

business. It is still the main source of

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Direct Mail Value Chain

Manage Customer Relations Distribute Direct Mail Message Print Direct Mail Message Select Targeted Names Prepare Direct Mail Message Prepare Business Case Fulfill Orders

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Prepare

Business

Case

1

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Prepare

Direct Mail

Message

Prepare Business Case 1

2

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Select

Targeted

Names

Prepare Direct Mail Message Prepare Business Case 1 2

3

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Print Direct

Mail

Message

Select Targeted Names Prepare Direct Mail Message Prepare Business Case 1 2

4

3

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Distribute

Direct Mail

Message

Print Direct Mail Message Select Targeted Names Prepare Direct Mail Message Prepare Business Case 1 2

5

3 4

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Fulfill

Orders

Distribute Direct Mail Message Print Direct Mail Message Select Targeted Names Prepare Direct Mail Message Prepare Business Case 1 2

6

3 4 5

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Distribute Direct Mail Message Print Direct Mail Message Select Targeted Names Prepare Direct Mail Message Prepare Business Case

Manage

Customer

Relations

1 2

7

3 4 5 Fulfill Orders 6

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Manage Customer Relations Distribute Direct Mail Message Print Direct Mail Message Select Targeted Names Prepare Direct Mail Message Prepare Business Case Fulfill Orders 1 2 3 4 5 6 7 Take

Orders OrdersFulfill

Collect Payments

6.1 6.2 6.3

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Production/Distribution

Customer

_Service

Planning

Manage Customer Relations Distribute Direct Mail Message Select Targeted Names Print Direct Mail Message Prepare Direct Mail Message Prepare Business Case Fulfill Orders

Process categories

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Prepare Business

Case

• Limited information • Limited experience • Not routine process

• Lack of awareness about direct mail benefits • Lack of universal, credible associations

• Tendency to “translate” local messages rather than design to market

• Limited financial incentive for agencies • Negative image of direct mail

• Little information on consumer preferences

Planning Processes

Prepare Direct Mail Message

Planning process:

key barriers

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Production/Distribution Process

• High quality consumables often have to be imported

• Import duty structure

• Availability of advanced printing capabilities • High costs, especially for small volume orders • Data not available

• Privacy concerns

• Address hygiene and associated software • Little address support from Posts

• High cost for good, credible lists • Misuse of lists Select Targeted Names Print Direct Mail Message

Production/distribution process:

key barriers

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• Heavy dependence on Posts

• Limited number of tailored services • High postage costs in some countries

• Limited knowledge of delivery alternatives • Inconvenient order processing operations • Limited payment options

• Low credit card penetration rates

• Understanding customs, tariffs, regulations • Security of contents

• Late deliveries; damaged merchandise • Poor quality merchandise

• Consumer reluctance to purchase by mail order Distribute Direct Mail Message Fulfill Orders

Production/Distribution Process

Production/distribution process:

key barriers

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Manage Customer

Relations

• Handling returns

• Providing product information/support • Handling billing problems

Customer Service Process

Customer service process:

key barriers

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Prepare Business Case Manage Customer Relations Distribute Direct Mail Message Print Direct Mail Message Fulfill Orders Select Targeted Names Prepare Direct Mail Message

• Lack of awareness regarding direct mail benefits

• Limited incentives for advertising agencies

• Lack of address lists and support systems

• Increased privacy laws and regulations

• Lack of direct mail postal products and services

• Unreliable postal delivery systems

• Inefficient fulfillment operations

• Skeptical customers

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Manage Customer Relations Distribute Direct Mail Message Print Direct Mail Message Select Targeted Names Prepare Direct Mail Message Prepare Business Case Fulfill Orders

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Mail order and postal services

Traditional printed media like catalogues and

direct mailings continue to be the centerpiece

of information for the consumer, enabling him

or her to freely decide, online communication

giving supplementary information and

possibility to order.

The growing penetration of e-commerce will

need careful fulfillment of the orders received,

and the delivery of parcels.

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Mail order and postal services

Therefore, the issue to enable RELIABLE,

AFFORDABLE and MARKET-ORIENTED postal

services is and remains of the utmost

importance.

Postal administrations must therefore listen

carefully and respond adequately and

creatively to the needs and wishes of this

sector.

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The multiplier sheet

Each Direct Mail piece generates a number of

other mail pieces!

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ResponseAbility

Consumer Research

Australia Post recently

research study into business

people's and consumers'

attitudes to different marketing

media. And the results make

very interesting reading. Direct

mail, it was found, is the

top-performing medium in all sorts

of areas.

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ResponseAbility

Consumer Research

5% 14% 24% 34% 50% 55% 55% 61% 0% 10% 20% 30% 40% 50% 60% 70% Email Radio UPM - No Prior Relationship UPM - Prior Relationship TV News & Mags Unaddressed Mail Solicited Personalised Mail

Percentage of consumers who purchase as a

result of receiving media

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ResponseAbility

Consumer Research

Besides, 98% of consumers believed that:

Direct Mail contains information that helps

them understand the nature of the product

being promoted.

Direct Mail helps them through the

decision-making and purchasing process

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