D I R E CT M A I L I N T H E M E D I A M I X

L I F EW I T HP R I N T

D I R E CT M A I L I N T H E M E D I A M I X

HOW CAN SOMETHING THAT DOES NOT

MOVE BE SO MOVING? HOW CAN SOMETHING

THAT MAKES NO SOUND SAY SO MUCH?

THAT’S THE POWER OF PRINT. PAPER AND

INK CREATING LIFE . OR RECREATING IT.

BUT WITH NO RULES. NO RESTRICTIONS.

I N I T S F I N I S H E D F O R M , P R I N T H A S

T H E A B I L I T Y T O T O U C H E A C H A N D

EVERY EMOTION WE HAVE. IT CAN MAKE US

LAUGH. MAKE US CRY. MAKE US THINK

I N WAY S W E ’ V E N E V E R T H O U G H T B E FO R E .

AND BECAUSE OF THAT, OUR RELATIONSHIP

W I T H P R I N T I S O N E O F T H E M O S T

MEANINGFUL WE WILL HAVE IN OUR LIVES.

D I R E CT M A I L I N T H E M E D I A M I X

HOW CAN SOMETHING THAT DOES NOT

MOVE BE SO MOVING? HOW CAN SOMETHING

THAT MAKES NO SOUND SAY SO MUCH?

THAT’S THE POWER OF PRINT. PAPER AND

INK CREATING LIFE . OR RECREATING IT.

BUT WITH NO RULES. NO RESTRICTIONS.

I N I T S F I N I S H E D F O R M , P R I N T H A S

T H E A B I L I T Y T O T O U C H E A C H A N D

EVERY EMOTION WE HAVE. IT CAN MAKE US

LAUGH. MAKE US CRY. MAKE US THINK

I N WAY S W E ’ V E N E V E R T H O U G H T B E FO R E .

AND BECAUSE OF THAT, OUR RELATIONSHIP

W I T H P R I N T I S O N E O F T H E M O S T

MEANINGFUL WE WILL HAVE IN OUR LIVES.

1 DEFINING DIRECT MAIL 4

2 LEADERS IN DIRECT MAIL 14Lester Wunderman 16Seth Godin 18Don Peppers 20Reader’s Digest 22

3 REACHING CONSUMERS VIA DIRECT MAIL 24

4 SUCCESSFUL AND CREATIVE DIRECT MAIL CASES 32Norwegian Post 34VW 36Rabobank 38UNESCO 40Guinness 42

5 CONSUMER BEHAVIOUR 44

6 CREATIVITY IS KEY BUT THE CONSUMER DECIDES 52

7 PERSPECTIVES ON CREATIVITY 58Rory Sutherland 60Nick Meads 62Fred Koblinger 64Lor Gold 66François Renard 68

8 FACTS ABOUT DIRECT MAIL IN EUROPE 70Facts 72The Won Report 7 3

LIFE WITH PRINT 74

SAPPI 75

PAGE 2 CONTENTS

CONTENTS

PAGE 3

1 DEFINING DIRECT MAIL 4

2 LEADERS IN DIRECT MAIL 14Lester Wunderman 16Seth Godin 18Don Peppers 20Reader’s Digest 22

3 REACHING CONSUMERS VIA DIRECT MAIL 24

4 SUCCESSFUL AND CREATIVE DIRECT MAIL CASES 32Norwegian Post 34VW 36Rabobank 38UNESCO 40Guinness 42

5 CONSUMER BEHAVIOUR 44

6 CREATIVITY IS KEY BUT THE CONSUMER DECIDES 52

7 PERSPECTIVES ON CREATIVITY 58Rory Sutherland 60Nick Meads 62Fred Koblinger 64Lor Gold 66François Renard 68

8 FACTS ABOUT DIRECT MAIL IN EUROPE 70Facts 72The Won Report 7 3

LIFE WITH PRINT 74

SAPPI 75

PAGE 2 CONTENTS

CONTENTS

PAGE 3

PAGE 5

DEFINING DIRECT MAIL

TA K I N G A Q U I E T M O M E N T TO R E A D T H AT LOV E L E T T E R , G E TFO C U S E D O N A B U S I N E S S P R O P O S A L , C O N S I D E R A G R E ATO F F E R , W E A L L E X P E R I E N C E I T R E G U L A R LY. P E R S O N A L O RBUSINESS MAIL OFFERS US THESE CONTACT MOMENTS THATARE UNIQUE TO CONSUMERS AND ADVERTISERS.

PAGE 4

1

PAGE 5

DEFINING DIRECT MAIL

TA K I N G A Q U I E T M O M E N T TO R E A D T H AT LOV E L E T T E R , G E TFO C U S E D O N A B U S I N E S S P R O P O S A L , C O N S I D E R A G R E ATO F F E R , W E A L L E X P E R I E N C E I T R E G U L A R LY. P E R S O N A L O RBUSINESS MAIL OFFERS US THESE CONTACT MOMENTS THATARE UNIQUE TO CONSUMERS AND ADVERTISERS.

PAGE 4

1

1880

PAGE 7

Follow-up is key to direct marketingactivities and therefore to direct mail. Amailing invites consumers to react andthis reaction is then followed by anothermailing… all of these steps are measuredand can therefore guide future action.This interactivity of direct mail (gettingto know your clients better each timethey react) makes it a unique one-to-one communication tool. By trackingthe results, you can easily calculate thecost per response (inquiry or sale). Thismeasurability is a major advantage formarketers compared to other marketingcommunication tools.

The personalisation, interactivity andthe possibility of measuring resultsmade direct marketing and direct mailinitially an action-oriented tool. A greatpersonalised offer, with measurableimpact and cost per person reached,

offered advertisers quantifiable results.(At the beginning of the 20th century,John Wanamaker said that 50% of alladvertising budgets were ineffective –but he didn’t know which 50%!)

This accountability has also madedirect mail the playground of “rulers”,the people who develop “rules” whichoptimise the response to direct mail.Professor Siegfried Vögele fromGermany is one of the best known. Heused eye-track cameras to identify thepattern readers follow when goingthrough a letter or leaflet. He thendeveloped creative guidelines on howto develop the most effective directmail letter, envelope and leaflet.

GETTING TO KNOW YOU, MEASURE BY MEASURE

People have communicated by mailthroughout the ages. While the channelsto send mail have become faster andmore reliable, letters have always beenthe cornerstone of human communication.Whether delivered by personal messengers,pigeons, mailcoach, standard post orelectronically, letters are predomi-nantly personal and, after face-to-facecom mu nication, the most effective vehiclefor one-to-one communication.

Appreciating just how much peoplevalued personalised communication,businesses quickly identified mail as a tool to announce products and services.Letters were already being used in the17th century to promote financial oppor-tunities, but the growth of what maturedinto direct mail started last century.

Using a letter, often with a leaflet,became a specialism on its own. At thebeginning of the 1960s, American adver-tising pioneer Lester Wunderman referredto it as “direct marketing”, but today,direct marketing encompasses a lotmore than direct mail. It deals with building and maintaining one-to-one rela-tionships between brands and customers,with the purpose of establishing animage for the brand and selling productsto customers.

What’s dropped in the letterbox?

Direct mail 20,6%Personal mail 53,4%Leaflets/coupons 20,9%Free newspapers 5,0%

SOURCE - ROYAL MAIL CONSUMER PANEL, UK.(1)

WHAT IS DIRECT MAIL?

PAGE 6 DEFINING DIRECT MAIL WHAT IS DIRECT MAIL? / GETTING TO KNOW YOU, MEASURE BY MEASURE

THE FIRST LETTERSHOP (DIRECT MAIL PRODUCTION AND HANDLING HOUSE)WAS ESTABLISHED IN THE USA IN 1880. WITHIN 11 YEARS, THE NATIONALCASH REGISTER COMPANY (NCR) HAD MAILED FOUR MILLION LETTERS TOPROSPECTIVE CLIENTS.(2)

“…ONE ADDITIONAL WEEK FREE IN BARBADOS…”

Mr. JIM BROWN36 YEARS OLDGOLFER

1880

PAGE 7

Follow-up is key to direct marketingactivities and therefore to direct mail. Amailing invites consumers to react andthis reaction is then followed by anothermailing… all of these steps are measuredand can therefore guide future action.This interactivity of direct mail (gettingto know your clients better each timethey react) makes it a unique one-to-one communication tool. By trackingthe results, you can easily calculate thecost per response (inquiry or sale). Thismeasurability is a major advantage formarketers compared to other marketingcommunication tools.

The personalisation, interactivity andthe possibility of measuring resultsmade direct marketing and direct mailinitially an action-oriented tool. A greatpersonalised offer, with measurableimpact and cost per person reached,

offered advertisers quantifiable results.(At the beginning of the 20th century,John Wanamaker said that 50% of alladvertising budgets were ineffective –but he didn’t know which 50%!)

This accountability has also madedirect mail the playground of “rulers”,the people who develop “rules” whichoptimise the response to direct mail.Professor Siegfried Vögele fromGermany is one of the best known. Heused eye-track cameras to identify thepattern readers follow when goingthrough a letter or leaflet. He thendeveloped creative guidelines on howto develop the most effective directmail letter, envelope and leaflet.

GETTING TO KNOW YOU, MEASURE BY MEASURE

People have communicated by mailthroughout the ages. While the channelsto send mail have become faster andmore reliable, letters have always beenthe cornerstone of human communication.Whether delivered by personal messengers,pigeons, mailcoach, standard post orelectronically, letters are predomi-nantly personal and, after face-to-facecom mu nication, the most effective vehiclefor one-to-one communication.

Appreciating just how much peoplevalued personalised communication,businesses quickly identified mail as a tool to announce products and services.Letters were already being used in the17th century to promote financial oppor-tunities, but the growth of what maturedinto direct mail started last century.

Using a letter, often with a leaflet,became a specialism on its own. At thebeginning of the 1960s, American adver-tising pioneer Lester Wunderman referredto it as “direct marketing”, but today,direct marketing encompasses a lotmore than direct mail. It deals with building and maintaining one-to-one rela-tionships between brands and customers,with the purpose of establishing animage for the brand and selling productsto customers.

What’s dropped in the letterbox?

Direct mail 20,6%Personal mail 53,4%Leaflets/coupons 20,9%Free newspapers 5,0%

SOURCE - ROYAL MAIL CONSUMER PANEL, UK.(1)

WHAT IS DIRECT MAIL?

PAGE 6 DEFINING DIRECT MAIL WHAT IS DIRECT MAIL? / GETTING TO KNOW YOU, MEASURE BY MEASURE

THE FIRST LETTERSHOP (DIRECT MAIL PRODUCTION AND HANDLING HOUSE)WAS ESTABLISHED IN THE USA IN 1880. WITHIN 11 YEARS, THE NATIONALCASH REGISTER COMPANY (NCR) HAD MAILED FOUR MILLION LETTERS TOPROSPECTIVE CLIENTS.(2)

“…ONE ADDITIONAL WEEK FREE IN BARBADOS…”

Mr. JIM BROWN36 YEARS OLDGOLFER

1

Measurement has made direct mail theideal tool to attract new customers forbrands (acquisition). Banks, telecommuni-cation companies and car manufacturersall frequently use mail to announce newservices, models or products togetherwith special offers. The results offerinsights into the potential of specific offersfor specific consumer segments. In turn,that knowledge might help to betterselect target groups with the highestpotential. Fundraisers, for example, usedirect mail as a tool to address well-defined consumer segments with theirmessage. And analysis allows them tocorrect the choice of segments quickly.

2

More and more companies use directmail to build up a relationship with theirexisting customers (retention). Brandcommunication via mail is an effectivetool to create brand loyalty. CRM(Customer Relationship Management)programmes view customers not aspeople buying products at random, butas people who can be motivated tocontinue buying specific products andservices. Communicating on a regularbasis also prevents “churn”, customersshifting from one brand to another.

3

“Similar people buy similar products”is at the basis of “member-gets-member”(MGM) programmes. Existing customersare motivated to introduce other consumersto try or buy the brand for mutual benefit.We have all seen these mailings forAmerican Express and mobile telecomproviders. MGM programmes have provedto be quite effective for various categories.

PAGE 9

COME WITH ME, STAY WITH ME, TELL YOUR FRIENDSToday, direct mail is used to address both new and existing customers. The increased focus on Return on

Investment (ROI), measurement andaccountability has been a major reasonfor the growth of the direct mail sector.

Developments in information technologyhave provided direct mail professionalswith a wealth of possibilities. Increasedcomputer processing power, the avail-ability of customer addresses, softwareto help identify and select the rightcustomers and the ability to digitallyprint variable personalised data havepropelled the use of direct mail — anddirect marketing in general.

The growth of direct mail has also beenstimulated by the expanding number ofmass media options, the increasinglyfragmented coverage of mass media,the increase in related costs, and conse-quently the difficulty of reaching massconsumer groups through a limitednumber of media.

The power of direct mail to addressevery customer as one person, insteadof the mass media’s “one size fits all”approach, matches the consumer’sinherent individuality. What “made-to-measure” is to the fashion industry, so“written-to-measure” is to direct mail.A perfect fit. Consumers appreciatedirect mail when it is relevant, respectfuland rewarding for them.

BENEFITS OF DIRECT MAIL

PAGE 8 DEFINING DIRECT MAIL BENEFITS OF DIRECT MAIL / COME WITH ME, STAY WITH ME

IF THE REAL COST OF MANUFACTURING AUTOMOBILESHAD DECLINED AT THE SAME RATESINCE 1950 AS THE REAL COST OF PROCESSING INFORMATION, IT WOULD BE CHEAPER TODAY TO ABANDON YOUR ROLLS ROYCEAND BUY A NEW ONE RATHER THANPUT A DIME IN A PARKING METER.(THE ONE-TO-ONE FUTURE, PEPPERS & ROGERS, 1993).

MASS MEDIAAPPROACH

PERSONALAPPROACH

DIR

EC

T M

AIL

EF

FIC

IEN

CY

1

Measurement has made direct mail theideal tool to attract new customers forbrands (acquisition). Banks, telecommuni-cation companies and car manufacturersall frequently use mail to announce newservices, models or products togetherwith special offers. The results offerinsights into the potential of specific offersfor specific consumer segments. In turn,that knowledge might help to betterselect target groups with the highestpotential. Fundraisers, for example, usedirect mail as a tool to address well-defined consumer segments with theirmessage. And analysis allows them tocorrect the choice of segments quickly.

2

More and more companies use directmail to build up a relationship with theirexisting customers (retention). Brandcommunication via mail is an effectivetool to create brand loyalty. CRM(Customer Relationship Management)programmes view customers not aspeople buying products at random, butas people who can be motivated tocontinue buying specific products andservices. Communicating on a regularbasis also prevents “churn”, customersshifting from one brand to another.

3

“Similar people buy similar products”is at the basis of “member-gets-member”(MGM) programmes. Existing customersare motivated to introduce other consumersto try or buy the brand for mutual benefit.We have all seen these mailings forAmerican Express and mobile telecomproviders. MGM programmes have provedto be quite effective for various categories.

PAGE 9

COME WITH ME, STAY WITH ME, TELL YOUR FRIENDSToday, direct mail is used to address both new and existing customers. The increased focus on Return on

Investment (ROI), measurement andaccountability has been a major reasonfor the growth of the direct mail sector.

Developments in information technologyhave provided direct mail professionalswith a wealth of possibilities. Increasedcomputer processing power, the avail-ability of customer addresses, softwareto help identify and select the rightcustomers and the ability to digitallyprint variable personalised data havepropelled the use of direct mail — anddirect marketing in general.

The growth of direct mail has also beenstimulated by the expanding number ofmass media options, the increasinglyfragmented coverage of mass media,the increase in related costs, and conse-quently the difficulty of reaching massconsumer groups through a limitednumber of media.

The power of direct mail to addressevery customer as one person, insteadof the mass media’s “one size fits all”approach, matches the consumer’sinherent individuality. What “made-to-measure” is to the fashion industry, so“written-to-measure” is to direct mail.A perfect fit. Consumers appreciatedirect mail when it is relevant, respectfuland rewarding for them.

BENEFITS OF DIRECT MAIL

PAGE 8 DEFINING DIRECT MAIL BENEFITS OF DIRECT MAIL / COME WITH ME, STAY WITH ME

IF THE REAL COST OF MANUFACTURING AUTOMOBILESHAD DECLINED AT THE SAME RATESINCE 1950 AS THE REAL COST OF PROCESSING INFORMATION, IT WOULD BE CHEAPER TODAY TO ABANDON YOUR ROLLS ROYCEAND BUY A NEW ONE RATHER THANPUT A DIME IN A PARKING METER.(THE ONE-TO-ONE FUTURE, PEPPERS & ROGERS, 1993).

MASS MEDIAAPPROACH

PERSONALAPPROACH

DIR

EC

T M

AIL

EF

FIC

IEN

CY

PAGE 11

Retention, retention, retention!From a one-off sales-orientated marketingtool, direct mail has evolved into aninstrument which allows marketers ongoinginteraction with customers.

The marketplace has become highlycompetitive, the cost of acquiring a newcustomer is a multiple of the cost of retaining an existing customer. Socompanies are shifting their focustowards retaining customers via CRMprogrammes and concentrating on theLife Time Value (LTV) of every customer.Controlling the migration of customersor the churn rate (percentage of customerswho change brands) is a key objective.

Direct mail received from companieswhich are already familiar to consumersis more positively received than “cold”direct mail. These companies experiencea “halo effect” and their goods and serv-ices are viewed in a more positive light.These “warm” mailings are also the mosteffective in generating a response.

The highly competitive world of airlinecompanies has also embraced theconcept of CRM. Dutch airline KLMlaunched CRM in 2003 to use everycontact with customers to improve thebuying and travel experience. From thisperspective, a complaint is a “gift”. Itoffers the company another chance towin back the trust of a customer. Aspart of the CRM programme, KLMswitched its TV advertising budget to apersonal dialogue with its customers.Thanks to this programme, KLM increasedits number of Flying Dutchman membersby 20% in one year. And profit by 5%. (4)

Loyalty is closely related to customersatisfaction: the more you appreciatethe brand or the company behind thebrand, the more inclined you will be tobuy the product again. But withconsumers becoming more assertiveand knowledgeable about brands andcompanies, companies need to bebetter at anticipating consumer ques-tions and complaints.

YOU KNOW ME, YOU CAN TRUST ME

PAGE 10 DEFINING DIRECT MAIL YOU KNOW ME, YOU CAN TRUST ME

Selling to people you know is easier

(% indicates closing rate)

New customer 5-20%

Repeat sale to lapsed customer 20-40%

Repeat sale to existing client 60-70%

SOURCE - HENLEY MANAGER UPDATE. (3)

PAGE 11

Retention, retention, retention!From a one-off sales-orientated marketingtool, direct mail has evolved into aninstrument which allows marketers ongoinginteraction with customers.

The marketplace has become highlycompetitive, the cost of acquiring a newcustomer is a multiple of the cost of retaining an existing customer. Socompanies are shifting their focustowards retaining customers via CRMprogrammes and concentrating on theLife Time Value (LTV) of every customer.Controlling the migration of customersor the churn rate (percentage of customerswho change brands) is a key objective.

Direct mail received from companieswhich are already familiar to consumersis more positively received than “cold”direct mail. These companies experiencea “halo effect” and their goods and serv-ices are viewed in a more positive light.These “warm” mailings are also the mosteffective in generating a response.

The highly competitive world of airlinecompanies has also embraced theconcept of CRM. Dutch airline KLMlaunched CRM in 2003 to use everycontact with customers to improve thebuying and travel experience. From thisperspective, a complaint is a “gift”. Itoffers the company another chance towin back the trust of a customer. Aspart of the CRM programme, KLMswitched its TV advertising budget to apersonal dialogue with its customers.Thanks to this programme, KLM increasedits number of Flying Dutchman membersby 20% in one year. And profit by 5%. (4)

Loyalty is closely related to customersatisfaction: the more you appreciatethe brand or the company behind thebrand, the more inclined you will be tobuy the product again. But withconsumers becoming more assertiveand knowledgeable about brands andcompanies, companies need to bebetter at anticipating consumer ques-tions and complaints.

YOU KNOW ME, YOU CAN TRUST ME

PAGE 10 DEFINING DIRECT MAIL YOU KNOW ME, YOU CAN TRUST ME

Selling to people you know is easier

(% indicates closing rate)

New customer 5-20%

Repeat sale to lapsed customer 20-40%

Repeat sale to existing client 60-70%

SOURCE - HENLEY MANAGER UPDATE. (3)

L I F EW I T HP R I N T

L I F EW I T HP R I N T

PAGE 15PAGE 14

LEADERS IN DIRECT MAIL

O N E O F T H E G R E AT E S T G I F T S I N B U S I N E S S I S TO L E A R N FROM THE LESSONS AND EXPERIENCE OF OTHERS. FOURL E A D E R S I N D I R E CT M A I L P R O V I D E U S W I T H VA LU A B L EI N S I G H T.

2

PAGE 15PAGE 14

LEADERS IN DIRECT MAIL

O N E O F T H E G R E AT E S T G I F T S I N B U S I N E S S I S TO L E A R N FROM THE LESSONS AND EXPERIENCE OF OTHERS. FOURL E A D E R S I N D I R E CT M A I L P R O V I D E U S W I T H VA LU A B L EI N S I G H T.

2

PAGE 17

Lester Wunderman founded the Wundermandirect marketing agency in 1958 and isseen as one of the “fathers” of directmarketing. Very much like another adver-tising icon, David Ogilvy, he developed thetechnique for a new advertising disciplinewhich he called direct marketing.

In those days, direct marketing was theequivalent of direct mail or mail orderselling, but Wunderman revolutionised theindustry. He introduced what are todaycommon techniques such as bound-insubscription cards, pre-printed insertsand 0800 numbers to sell Time magazine.Book clubs, membership clubs, testing,split runs, increased processing power,databases and segmentation all changedthe look of direct mail and Wundermanwas part of this change.

LESTER WUNDERMAN

PAGE 16 LEADERS IN DIRECT MAIL LESTER WUNDERMAN

“DIR

EC

T M

AR

KE

TIN

G I

S A

ST

RA

TE

GY

NO

T A

TA

CT

IC”

TO HONOUR HIS CAREER AND

ACCOMPLISHMENTS, LESTER

WUNDERMAN WAS ELEVATED

TO THE DIRECT MARKETING

ASSOCIATION’S HALL OF

FAME AND WAS CHOSEN AS

ONE OF THE “ADVERTISING

LEGENDS AND LEADERS” BY

ADWEEK MAGAZINE.

PAGE 17

Lester Wunderman founded the Wundermandirect marketing agency in 1958 and isseen as one of the “fathers” of directmarketing. Very much like another adver-tising icon, David Ogilvy, he developed thetechnique for a new advertising disciplinewhich he called direct marketing.

In those days, direct marketing was theequivalent of direct mail or mail orderselling, but Wunderman revolutionised theindustry. He introduced what are todaycommon techniques such as bound-insubscription cards, pre-printed insertsand 0800 numbers to sell Time magazine.Book clubs, membership clubs, testing,split runs, increased processing power,databases and segmentation all changedthe look of direct mail and Wundermanwas part of this change.

LESTER WUNDERMAN

PAGE 16 LEADERS IN DIRECT MAIL LESTER WUNDERMAN

“DIR

EC

T M

AR

KE

TIN

G I

S A

ST

RA

TE

GY

NO

T A

TA

CT

IC”

TO HONOUR HIS CAREER AND

ACCOMPLISHMENTS, LESTER

WUNDERMAN WAS ELEVATED

TO THE DIRECT MARKETING

ASSOCIATION’S HALL OF

FAME AND WAS CHOSEN AS

ONE OF THE “ADVERTISING

LEGENDS AND LEADERS” BY

ADWEEK MAGAZINE.

Seth Godin, a former vice-president ofdirect marketing at Yahoo, launchedthe concept of Permission Marketingsome years ago. And it has been a leadingtheme in direct marketing ever since.His key thought is that marketers needto shift from “interruption market-ing” to “permission marketing”. Heempowers the customer in this processand by doing so facilitates themarketer’s job.

What is “interruption marketing”?Customers’ daily lives are constantlyinterrupted by commercial messages.The majority of these messages don’tcome on request but they land on thedoormat, arrive in the inbox, beam outfrom a TV commercial or stare at youfrom an advertising hoarding. As thenumber of messages keeps on increas-ing, agencies become smarter in find-ing ways to cut through the clutter.Customers, however, can’t cope withthis overload of advertising. They haveonly a limited attention span; and sothey are selective. Money is also limited,and the more products there are on offer,the less money can be spent on oneproduct. To gain more attention, marketersneed to spend more in order to cut the clutter, but so will competitivemarketers and the result will be thatthe clutter has increased and attentionfor your product has decreased.

The way out of this situation is to askthe customer’s permission to talk to them.

Godin suggests five steps to a profitablerelationship:

1 Offer the future client a reward for voluntary participation

2 Use the attention granted by yourcustomer to inform him or her overtime of your products and services

3 Renew the reward so the customerwill prolong permission

4 Offer additional rewards to gainmore permission

5 Use the permission to graduallychange the customer’s behaviourtowards a profitable situation

SETH GODIN

PAGE 18 LEADERS IN DIRECT MAIL SETH GODIN

“US

E P

ER

MIS

SIO

N T

O C

HA

NG

E C

US

TOM

ER

’S B

EH

AV

IOU

R T

O A

PR

OF

ITA

BL

E S

ITU

AT

ION

”

Seth Godin, a former vice-president ofdirect marketing at Yahoo, launchedthe concept of Permission Marketingsome years ago. And it has been a leadingtheme in direct marketing ever since.His key thought is that marketers needto shift from “interruption market-ing” to “permission marketing”. Heempowers the customer in this processand by doing so facilitates themarketer’s job.

What is “interruption marketing”?Customers’ daily lives are constantlyinterrupted by commercial messages.The majority of these messages don’tcome on request but they land on thedoormat, arrive in the inbox, beam outfrom a TV commercial or stare at youfrom an advertising hoarding. As thenumber of messages keeps on increas-ing, agencies become smarter in find-ing ways to cut through the clutter.Customers, however, can’t cope withthis overload of advertising. They haveonly a limited attention span; and sothey are selective. Money is also limited,and the more products there are on offer,the less money can be spent on oneproduct. To gain more attention, marketersneed to spend more in order to cut the clutter, but so will competitivemarketers and the result will be thatthe clutter has increased and attentionfor your product has decreased.

The way out of this situation is to askthe customer’s permission to talk to them.

Godin suggests five steps to a profitablerelationship:

1 Offer the future client a reward for voluntary participation

2 Use the attention granted by yourcustomer to inform him or her overtime of your products and services

3 Renew the reward so the customerwill prolong permission

4 Offer additional rewards to gainmore permission

5 Use the permission to graduallychange the customer’s behaviourtowards a profitable situation

SETH GODIN

PAGE 18 LEADERS IN DIRECT MAIL SETH GODIN

“US

E P

ER

MIS

SIO

N T

O C

HA

NG

E C

US

TOM

ER

’S B

EH

AV

IOU

R T

O A

PR

OF

ITA

BL

E S

ITU

AT

ION

”

This is the man who introduced theterm “One-to-One Marketing” in 1993.That was his answer to the mass-market approach of most companies. Itis increasingly important to know muchabout each of your customers, insteadof knowing much about all of yourcustomers. He taught us to distinguishbetween four kinds of people: prospects,customers, loyal customers and formercustomers. Peppers’s approach startswith the idea of “one customer at a time”.Each customer has a certain value tothe company and products, services andrelationships need to be customised tothis profile. And the customer shouldbe at the heart of a company’s philosophy,stimulating such concepts as customercontact, customer managers, customerdialogue and customer centric organi-sations. Contact with the customer shouldbe ongoing, part of a CRM programme.

This results in strong relationshipswith customers that in turn will gener-ate higher customer satisfaction andprofitability.

As it is cheaper to keep an existingcustomer than to attract a new one, he further developed the concept ofcustomer relationship management. In his view, “share of market” needs to be replaced by “share of customer”and “return on investment” by “returnon customer”.

Peppers & Rogers today is recognisedas a leading authority on customer-based business strategy. Don Peppersis the co-author of several books ondirect marketing and CRM that havecollectively sold more than a millioncopies.

DON PEPPERS

PAGE 20 LEADERS IN DIRECT MAIL DON PEPPERS

“EA

CH

CU

STO

ME

R H

AS

A V

AL

UE

TO

TH

E C

OM

PA

NY,

PR

OD

UC

TS

NE

ED

TO

BE

CU

STO

MIS

ED

TO

TH

IS P

RO

FIL

E.”

PAGE 21

This is the man who introduced theterm “One-to-One Marketing” in 1993.That was his answer to the mass-market approach of most companies. Itis increasingly important to know muchabout each of your customers, insteadof knowing much about all of yourcustomers. He taught us to distinguishbetween four kinds of people: prospects,customers, loyal customers and formercustomers. Peppers’s approach startswith the idea of “one customer at a time”.Each customer has a certain value tothe company and products, services andrelationships need to be customised tothis profile. And the customer shouldbe at the heart of a company’s philosophy,stimulating such concepts as customercontact, customer managers, customerdialogue and customer centric organi-sations. Contact with the customer shouldbe ongoing, part of a CRM programme.

This results in strong relationshipswith customers that in turn will gener-ate higher customer satisfaction andprofitability.

As it is cheaper to keep an existingcustomer than to attract a new one, he further developed the concept ofcustomer relationship management. In his view, “share of market” needs to be replaced by “share of customer”and “return on investment” by “returnon customer”.

Peppers & Rogers today is recognisedas a leading authority on customer-based business strategy. Don Peppersis the co-author of several books ondirect marketing and CRM that havecollectively sold more than a millioncopies.

DON PEPPERS

PAGE 20 LEADERS IN DIRECT MAIL DON PEPPERS

“EA

CH

CU

STO

ME

R H

AS

A V

AL

UE

TO

TH

E C

OM

PA

NY,

PR

OD

UC

TS

NE

ED

TO

BE

CU

STO

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TO

TH

IS P

RO

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PAGE 21

PAGE 23

This pocket-size magazine with a hugereadership (more than 100 million world -wide, in 48 editions and 19 languages)started off as a direct mail project. Thefounders of the Reader’s Digest, DewittWallace and his wife Lila Achesen,decided in 1922 to start a magazinethat would help readers to cope withinformation overload. They selectedarticles from different sources, then“digested” and published them in Reader’sDigest. All these articles should offer“enduring value and interest” to thereaders. The magazine was only availablethrough direct mail. This concept andthe distribution channel created an instantsuccess and the circulation reached a staggering million in only 15 years.

Direct mail has been and still is a keycomponent of its success. Today, 90-95%of its sales still depends on (acquisition)mailing activities. The Reader’s Digesthas developed its own style of mailings,and has long been perceived as animportant “school” for direct marketers.An envelope typically contains a letter,a leaflet, stickers, a lift letter, an incen-tive leaflet, a return coupon and a returnenvelope. Consumers are asked to “work”with the contents, peel off a sticker andstick it on the return coupon.

Another cornerstone of this successfulapproach is the organisation of sweep-stakes. In the USA, the Reader’s Digest

Sweepstakes are some of the best knownin the country. Today, other direct mediaare used to complement direct mail: inthe USA, testing with direct response TV,telemarketing and display marketingmight open new ways of generatingsubscriptions.

In addition to the Reader’s Digest, the company also publishes special-interest magazines, books, music andvideo and audiotapes. The Reader’sDigest has further developed as a realdirect-marketing company by enteringthe market for consumer data.

Thanks to all these — primarily directmail activities — the Reader’s Digesthas created high brand awareness anda strong image that is often associatedwith optimistic and conservative values.

READER’S DIGEST

PAGE 22 LEADERS IN DIRECT MAIL READER’S DIGEST

THE

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AD

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’S D

IGE

ST

DE

VELO

PE

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PAGE 23

This pocket-size magazine with a hugereadership (more than 100 million world -wide, in 48 editions and 19 languages)started off as a direct mail project. Thefounders of the Reader’s Digest, DewittWallace and his wife Lila Achesen,decided in 1922 to start a magazinethat would help readers to cope withinformation overload. They selectedarticles from different sources, then“digested” and published them in Reader’sDigest. All these articles should offer“enduring value and interest” to thereaders. The magazine was only availablethrough direct mail. This concept andthe distribution channel created an instantsuccess and the circulation reached a staggering million in only 15 years.

Direct mail has been and still is a keycomponent of its success. Today, 90-95%of its sales still depends on (acquisition)mailing activities. The Reader’s Digesthas developed its own style of mailings,and has long been perceived as animportant “school” for direct marketers.An envelope typically contains a letter,a leaflet, stickers, a lift letter, an incen-tive leaflet, a return coupon and a returnenvelope. Consumers are asked to “work”with the contents, peel off a sticker andstick it on the return coupon.

Another cornerstone of this successfulapproach is the organisation of sweep-stakes. In the USA, the Reader’s Digest

Sweepstakes are some of the best knownin the country. Today, other direct mediaare used to complement direct mail: inthe USA, testing with direct response TV,telemarketing and display marketingmight open new ways of generatingsubscriptions.

In addition to the Reader’s Digest, the company also publishes special-interest magazines, books, music andvideo and audiotapes. The Reader’sDigest has further developed as a realdirect-marketing company by enteringthe market for consumer data.

Thanks to all these — primarily directmail activities — the Reader’s Digesthas created high brand awareness anda strong image that is often associatedwith optimistic and conservative values.

READER’S DIGEST

PAGE 22 LEADERS IN DIRECT MAIL READER’S DIGEST

THE

RE

AD

ER

’S D

IGE

ST

DE

VELO

PE

D I

TS O

WN

UN

IQU

E S

TYL

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F M

AIL

ING

S

PAGE 25

REACHING CONSUMERS VIA DIRECT MAIL

ADVERTISERS USE A MIX OF DIFFERENT CHANNELS TO REACHCONSUMERS. CONSUMERS ARE SELECTIVE IN READING, WATCHINGOR LISTENING TO THESE CHANNELS, MAKING MEDIA CHOICE A DIFFICULT TASK TO BE EFFECTIVE AND EFFICIENT.

PAGE 24

3

PAGE 25

REACHING CONSUMERS VIA DIRECT MAIL

ADVERTISERS USE A MIX OF DIFFERENT CHANNELS TO REACHCONSUMERS. CONSUMERS ARE SELECTIVE IN READING, WATCHINGOR LISTENING TO THESE CHANNELS, MAKING MEDIA CHOICE A DIFFICULT TASK TO BE EFFECTIVE AND EFFICIENT.

PAGE 24

3

PAGE 27

Consumers today live in a world ofsimultaneous media use. They watchtelevision while surfing the Internet.They listen to the radio while readingthe newspaper.

A recent study in The Netherlands —and confirmed in the UK — showed thatmore than 80% of commercials arenot being seen by television viewers.People zap to other channels, talk toeach other, call friends, read, or walkaway from the TV to fetch somethingfrom the kitchen. (5)

Consumer attention is scarce and themedia are fighting to get their share.Advertisers look for ways of gettingconsumers’ attention by focusing onthe format of the advertisement, thestyle or the content. Humour is typi-cally used to cut through the clutter.

It is estimated that the fragmentedapproach to reach customers mayaccount for up to 10% of the performanceof each brand. (6)

The media has become more fragmentedover the past 15 years, the number of TVchannels has increased rapidly withaccess to more channels getting easierand the number of specialist magazinetit les has also increased rapidly.Marketers are unable to reach mass

audiences without incorporating morechannels or titles into their plans. Thefragmentation has also led to higher TVand press advertising costs.

“I don’t think advertising works anymore.TV advertising’s so average, it’s a wasteof money. We need other ways of reachingconsumers.” Philip Kotler(7)

In this fragmented media place, adver-tisers need to be clear about the roleeach medium can play and its effective-ness. A quarter of direct marketers inEurope judge that the effectiveness ofTV advertising will decrease in the nextthree years, while half of them expectthe effectiveness of direct mail willincrease. The same study reveals the“sweet spot” of the tools of the directmarketer. Electronic channels are goodat generating sales leads and collectingconsumer data, while TV is best to createsustainable brand awareness and image.However, it is direct mail that scoreshighest for building brand loyalty,generating sales leads, communicatingsales leads and gathering consumerdata.(8)

HEY, I ’M HERE, LOOK AT ME!!

PAGE 26 REACHING CONSUMERS VIA DIRECT MAIL HEY, I’M HERE, LOOK AT ME!!

DIRECT MAIL

ANNUAL REPORTS

BROCHURES

MAGAZINES

TELEVISION

POSTERS

INTERNET

RADIO

CATALOGUES

PAGE 27

Consumers today live in a world ofsimultaneous media use. They watchtelevision while surfing the Internet.They listen to the radio while readingthe newspaper.

A recent study in The Netherlands —and confirmed in the UK — showed thatmore than 80% of commercials arenot being seen by television viewers.People zap to other channels, talk toeach other, call friends, read, or walkaway from the TV to fetch somethingfrom the kitchen. (5)

Consumer attention is scarce and themedia are fighting to get their share.Advertisers look for ways of gettingconsumers’ attention by focusing onthe format of the advertisement, thestyle or the content. Humour is typi-cally used to cut through the clutter.

It is estimated that the fragmentedapproach to reach customers mayaccount for up to 10% of the performanceof each brand. (6)

The media has become more fragmentedover the past 15 years, the number of TVchannels has increased rapidly withaccess to more channels getting easierand the number of specialist magazinetit les has also increased rapidly.Marketers are unable to reach mass

audiences without incorporating morechannels or titles into their plans. Thefragmentation has also led to higher TVand press advertising costs.

“I don’t think advertising works anymore.TV advertising’s so average, it’s a wasteof money. We need other ways of reachingconsumers.” Philip Kotler(7)

In this fragmented media place, adver-tisers need to be clear about the roleeach medium can play and its effective-ness. A quarter of direct marketers inEurope judge that the effectiveness ofTV advertising will decrease in the nextthree years, while half of them expectthe effectiveness of direct mail willincrease. The same study reveals the“sweet spot” of the tools of the directmarketer. Electronic channels are goodat generating sales leads and collectingconsumer data, while TV is best to createsustainable brand awareness and image.However, it is direct mail that scoreshighest for building brand loyalty,generating sales leads, communicatingsales leads and gathering consumerdata.(8)

HEY, I ’M HERE, LOOK AT ME!!

PAGE 26 REACHING CONSUMERS VIA DIRECT MAIL HEY, I’M HERE, LOOK AT ME!!

DIRECT MAIL

ANNUAL REPORTS

BROCHURES

MAGAZINES

TELEVISION

POSTERS

INTERNET

RADIO

CATALOGUES

With numerous media options and limitedconsumer attention, efficiency and produc-tivity of advertising investment becomekey. One way of obtaining efficiencies isby creating more synergy between thedifferent media. Successful marketingintegrates different media options. Variouscases illustrate the impact of the combinedeffect of, let’s say, television and magazineadvertising. These confirm that one mediumwill positively influence the effect of theother medium and generate an overallhigher impact.

The impact of one medium on anotherwas strikingly demonstrated by a ground-breaking test. TV commercials and a directmail pack were sent to airline customers.A control group did not receive the mailing.The brochure in the mail pack incorporateda frame from the TV commercial and a freeflight bag as an incentive for booking. The results couldn’t demonstrate clearerthe benefits of an integrated multimediacampaign. Almost three-quarters of thecustomers who had received the mailingrecalled the mailing. Of the customers whohad received the mailing, 67% recalledthe TV commercial, while only 9% of thecustomers who had not received the mailingrecalled the TV commercial. Brand prefer-ence increased significantly in the groupwhich received the mailing with 27% votingthe airline as their first choice in the USA,while it was the first choice of only 1% in the control group.(9)

A consortium of radio network companiesin Britain conducted a study on the cross-media synergy. It indicated that 73% of radiolisteners could remember key visualelements of the television commercials whenhearing radio commercials. In addition, 57%relived the television advertisements whilelistening to the radio advertisement.(10)

A second medium delivers cues for remem-bering the other medium and, in doing so,strengthens the overall impact.

Today’s integration goes beyond that. Brandsare supported by integrated campaignsthat address customers and prospects viaall customer touchpoints using the fullscope of media to address them. At Ogilvy &Mather — a leading advertising agency —this is called 360° branding. It is a holisticlook at communications taking from eachdiscipline what is necessary to build a brand.

Ads do work; targeted ads though aremore cost-effective, yet most advertisingand marketing efforts are completelyuntargeted. They are hurricanes, whip-ping through a marketplace horizontally,touching everyone in the same way, regard-less of who they are and what they want.There is a huge amount of waste here, somuch that it’s easy to assert that advertisingisn’t working. Seth Godin, The Purple Cow(12)

ONE AND ONE MAKE THREE

PAGE 28 REACHING CONSUMERS VIA DIRECT MAIL 1+1=3 / THE NINE BENEFITS OF DIRECT MAIL

AS SEEN ON

TV THE NINE BENEFITS OF DIRECT MAILFROM DIRECT MAIL MEDIA PACK (9)

1 RESULTS ARE DIRECTLY MEASURABLE

2 YOU SPEAK TO SOMEBODY, NOT EVERYBODY, REDUCING WASTE

3 YOU CAN VARY THE MESSAGE TO SUIT THE RECIPIENT

4 YOU CAN DO A COMPLETE SELLING JOB — EVEN FOR COMPLEX PRODUCTS

5 DIRECT MAIL IS A PRIVATE MEDIUM

6 IT CAN BUILD A BRAND — ON ITS OWN OR WITH OTHER MEDIA

7 DIRECT MAIL CAN ACT AS YOUR SALES FORCE

8 DIRECT MAIL CAN INCREASE LOYALTY

9 DIRECT MAIL CREATES A POSITIVE IMPRESSION FOR A BRAND OR COMPANY

PAGE 29

With numerous media options and limitedconsumer attention, efficiency and produc-tivity of advertising investment becomekey. One way of obtaining efficiencies isby creating more synergy between thedifferent media. Successful marketingintegrates different media options. Variouscases illustrate the impact of the combinedeffect of, let’s say, television and magazineadvertising. These confirm that one mediumwill positively influence the effect of theother medium and generate an overallhigher impact.

The impact of one medium on anotherwas strikingly demonstrated by a ground-breaking test. TV commercials and a directmail pack were sent to airline customers.A control group did not receive the mailing.The brochure in the mail pack incorporateda frame from the TV commercial and a freeflight bag as an incentive for booking. The results couldn’t demonstrate clearerthe benefits of an integrated multimediacampaign. Almost three-quarters of thecustomers who had received the mailingrecalled the mailing. Of the customers whohad received the mailing, 67% recalledthe TV commercial, while only 9% of thecustomers who had not received the mailingrecalled the TV commercial. Brand prefer-ence increased significantly in the groupwhich received the mailing with 27% votingthe airline as their first choice in the USA,while it was the first choice of only 1% in the control group.(9)

A consortium of radio network companiesin Britain conducted a study on the cross-media synergy. It indicated that 73% of radiolisteners could remember key visualelements of the television commercials whenhearing radio commercials. In addition, 57%relived the television advertisements whilelistening to the radio advertisement.(10)

A second medium delivers cues for remem-bering the other medium and, in doing so,strengthens the overall impact.

Today’s integration goes beyond that. Brandsare supported by integrated campaignsthat address customers and prospects viaall customer touchpoints using the fullscope of media to address them. At Ogilvy &Mather — a leading advertising agency —this is called 360° branding. It is a holisticlook at communications taking from eachdiscipline what is necessary to build a brand.

Ads do work; targeted ads though aremore cost-effective, yet most advertisingand marketing efforts are completelyuntargeted. They are hurricanes, whip-ping through a marketplace horizontally,touching everyone in the same way, regard-less of who they are and what they want.There is a huge amount of waste here, somuch that it’s easy to assert that advertisingisn’t working. Seth Godin, The Purple Cow(12)

ONE AND ONE MAKE THREE

PAGE 28 REACHING CONSUMERS VIA DIRECT MAIL 1+1=3 / THE NINE BENEFITS OF DIRECT MAIL

AS SEEN ON

TV THE NINE BENEFITS OF DIRECT MAILFROM DIRECT MAIL MEDIA PACK (9)

1 RESULTS ARE DIRECTLY MEASURABLE

2 YOU SPEAK TO SOMEBODY, NOT EVERYBODY, REDUCING WASTE

3 YOU CAN VARY THE MESSAGE TO SUIT THE RECIPIENT

4 YOU CAN DO A COMPLETE SELLING JOB — EVEN FOR COMPLEX PRODUCTS

5 DIRECT MAIL IS A PRIVATE MEDIUM

6 IT CAN BUILD A BRAND — ON ITS OWN OR WITH OTHER MEDIA

7 DIRECT MAIL CAN ACT AS YOUR SALES FORCE

8 DIRECT MAIL CAN INCREASE LOYALTY

9 DIRECT MAIL CREATES A POSITIVE IMPRESSION FOR A BRAND OR COMPANY

PAGE 29

Direct mail is a valuable contact pointfor consumers. With increased dataabout consumers, marketers know thatnot every consumer represents the samevalue. High value customers justify a moreintense and personalised approach thancustomers renting a car once a year.While the brand perception should beidentical, the objectives per target group will be differentiated, and there-fore also the investment level, the media,the messaging and the offers.

Integrating objectives, media, creative andplanning will avoid so called “silo thinking”and will deliver a stronger, single-mindedbrand in a more cost-effective way. Mediaare complementary instead of replacingone another. It is often suggested thatoff-line direct mail will be replaced byon-line direct mail, yet it is the off-line

direct mail that drives the web traffic. Anda majority of the UK advertisers use directmail for this purpose. The personalisationpossibilities of direct mail are perceivedas a strong benefit.

Advertisers and consumers prefer a tangi-ble object, something that can be held ortouched. People prefer paper to some-thing that exists only electronically —how many of us read entire documents on the computer screen?

Marketing is entering a new phase thattranscends the mere coordination ofmessages across digital and physicalchannels. In this era of integratedmarketing, advertisers will knit messagesand media to involve consumers in acontinuous brand experience.Forrester Research and Fedma 2003(8)

REACHING THE MOST VALUABLE CUSTOMERS

PAGE 31PAGE 30 REACHING CONSUMERS VIA DIRECT MAIL REACHING THE MOST VALUABLE CUSTOMERS

“Consumers who do buy the brand are asource of positive profit flow. Consumerswho don't buy the brand often contributenegative profit-flow, because of market-ing expenses wasted by producing noreturn in sales. Brand profitability is theaggregate of the profitability of allconsumers. Implicit in this analysis isthe fundamental truth that, from thestandpoint of profitability, all consumersare not created equal. The so-called Pareto-Principle has entered the marketing lexiconas the “20/80 rule”, that is 20% of theconsumers account for 80% of the sales.

New data shows that for most categories,one-third of the buyers account for at leasttwo-thirds of the volume. This high-profitsegment” generally delivers six to ten timesas much profit as the low-profit segment.The profits of most “mass market” brandsclearly, then, do not come from the massmarket. The small segment of profit-producing consumers must have a highpriority in the marketing plan.”

GARTH HALLBERG INALL CONSUMERS ARE NOT CREATED EQUAL(1995)

BLEND OF SCENT > HORIZONTAL THINKING UNIQUE SCENT > SILO THINKING

> MOST OF THE PROFITS OF MANY BRANDS - EVEN BIG BRANDS - DERIVE FROM LESS THAN 10 % OF ALL HOUSEHOLDS.

> THE MOST VALUABLE CONSUMERS RARELY HAVE A DOMINANT BRAND - AS FEW AS 20% OF THEM BUY THE SAME BRAND MORE THAN HALF THE TIME.

> AS MUCH AS 80% OF BRAND VOLUME IS BOUGHT BY CONSUMERS WHO DON'T COUNT OR DON'T CARE.

> COMMUNICATING DIRECTLY WITH YOUR BEST CONSUMERS CAN INCREASE THEIR PURCHASES AS MUCH AS 40%.

> PROCTOR & GAMBLE AND KRAFT FOODS HAVE ALREADY BUILT DATABASES OF MORE THAN 40 MILLION HOUSEHOLDS. AND THERE ARE OTHER MARKETERS CLOSE BEHIND THEM.

> CONSUMERS WHO ARE ON THE DATABASE DO NOT RESENT THE MAILINGS THEY RECEIVE. ON THE CONTRARY, THEY LIKE THEM.

DAVID OGILVY FOREWORD IN ALL CONSUMERS ARE NOT CREATED EQUAL (1995)

20%> 20% OF ALL AMERICAN ADULTS RENT A CAR AT LEAST ONCE A YEAR> ONLY 5% RENT A CAR MORE THAN ONCE A YEAR

> 0.2% RENT A CAR TEN OR MORE TIMES A YEAR

> 1% OF CUSTOMERS PROVIDE CAR RENTAL COMPANIES

WITH 25% OF THEIR BUSINESS

THE ONE-TO-ONE FUTURE, PEPPERS & ROGERS

Direct mail is a valuable contact pointfor consumers. With increased dataabout consumers, marketers know thatnot every consumer represents the samevalue. High value customers justify a moreintense and personalised approach thancustomers renting a car once a year.While the brand perception should beidentical, the objectives per target group will be differentiated, and there-fore also the investment level, the media,the messaging and the offers.

Integrating objectives, media, creative andplanning will avoid so called “silo thinking”and will deliver a stronger, single-mindedbrand in a more cost-effective way. Mediaare complementary instead of replacingone another. It is often suggested thatoff-line direct mail will be replaced byon-line direct mail, yet it is the off-line

direct mail that drives the web traffic. Anda majority of the UK advertisers use directmail for this purpose. The personalisationpossibilities of direct mail are perceivedas a strong benefit.

Advertisers and consumers prefer a tangi-ble object, something that can be held ortouched. People prefer paper to some-thing that exists only electronically —how many of us read entire documents on the computer screen?

Marketing is entering a new phase thattranscends the mere coordination ofmessages across digital and physicalchannels. In this era of integratedmarketing, advertisers will knit messagesand media to involve consumers in acontinuous brand experience.Forrester Research and Fedma 2003(8)

REACHING THE MOST VALUABLE CUSTOMERS

PAGE 31PAGE 30 REACHING CONSUMERS VIA DIRECT MAIL REACHING THE MOST VALUABLE CUSTOMERS

“Consumers who do buy the brand are asource of positive profit flow. Consumerswho don't buy the brand often contributenegative profit-flow, because of market-ing expenses wasted by producing noreturn in sales. Brand profitability is theaggregate of the profitability of allconsumers. Implicit in this analysis isthe fundamental truth that, from thestandpoint of profitability, all consumersare not created equal. The so-called Pareto-Principle has entered the marketing lexiconas the “20/80 rule”, that is 20% of theconsumers account for 80% of the sales.

New data shows that for most categories,one-third of the buyers account for at leasttwo-thirds of the volume. This high-profitsegment” generally delivers six to ten timesas much profit as the low-profit segment.The profits of most “mass market” brandsclearly, then, do not come from the massmarket. The small segment of profit-producing consumers must have a highpriority in the marketing plan.”

GARTH HALLBERG INALL CONSUMERS ARE NOT CREATED EQUAL(1995)

BLEND OF SCENT > HORIZONTAL THINKING UNIQUE SCENT > SILO THINKING

> MOST OF THE PROFITS OF MANY BRANDS - EVEN BIG BRANDS - DERIVE FROM LESS THAN 10 % OF ALL HOUSEHOLDS.

> THE MOST VALUABLE CONSUMERS RARELY HAVE A DOMINANT BRAND - AS FEW AS 20% OF THEM BUY THE SAME BRAND MORE THAN HALF THE TIME.

> AS MUCH AS 80% OF BRAND VOLUME IS BOUGHT BY CONSUMERS WHO DON'T COUNT OR DON'T CARE.

> COMMUNICATING DIRECTLY WITH YOUR BEST CONSUMERS CAN INCREASE THEIR PURCHASES AS MUCH AS 40%.

> PROCTOR & GAMBLE AND KRAFT FOODS HAVE ALREADY BUILT DATABASES OF MORE THAN 40 MILLION HOUSEHOLDS. AND THERE ARE OTHER MARKETERS CLOSE BEHIND THEM.

> CONSUMERS WHO ARE ON THE DATABASE DO NOT RESENT THE MAILINGS THEY RECEIVE. ON THE CONTRARY, THEY LIKE THEM.

DAVID OGILVY FOREWORD IN ALL CONSUMERS ARE NOT CREATED EQUAL (1995)

20%> 20% OF ALL AMERICAN ADULTS RENT A CAR AT LEAST ONCE A YEAR> ONLY 5% RENT A CAR MORE THAN ONCE A YEAR

> 0.2% RENT A CAR TEN OR MORE TIMES A YEAR

> 1% OF CUSTOMERS PROVIDE CAR RENTAL COMPANIES

WITH 25% OF THEIR BUSINESS

THE ONE-TO-ONE FUTURE, PEPPERS & ROGERS

PAGE 33

SUCCESSFUL AND CREATIVE DIRECT MAIL CASES

DIRECT MAIL OFFERS GREAT POSSIBILIT IES TO CREATIVEPEOPLE TO EXCEL. THE SPACE, PHYSICAL POSSIBILIT IES,LAYOUT, AND PAPER QUALITIES CAN ALL BE DEFINED PERMAILING. THE FOLLOWING CASES FROM LAST YEAR’S CANNESLIONS DIRECT FESTIVAL DEMONSTRATE THE POWER OF DIRECTMAIL IN TERMS OF (SALES) RESULTS, AND ABOVE THAT, SHOWGREAT CREATIVITY IN PRESENTING PRODUCTS. ENJOY ANDBE INSPIRED!

PAGE 32

4

PAGE 33

SUCCESSFUL AND CREATIVE DIRECT MAIL CASES

DIRECT MAIL OFFERS GREAT POSSIBILIT IES TO CREATIVEPEOPLE TO EXCEL. THE SPACE, PHYSICAL POSSIBILIT IES,LAYOUT, AND PAPER QUALITIES CAN ALL BE DEFINED PERMAILING. THE FOLLOWING CASES FROM LAST YEAR’S CANNESLIONS DIRECT FESTIVAL DEMONSTRATE THE POWER OF DIRECTMAIL IN TERMS OF (SALES) RESULTS, AND ABOVE THAT, SHOWGREAT CREATIVITY IN PRESENTING PRODUCTS. ENJOY ANDBE INSPIRED!

PAGE 32

4

PAGE 35

Brief

Inform recently arrived students at theUniversity of Oslo to report their changeof address.

Solution

A number of personal letters were writtenand were “left behind” on tables, benchesand desks in dormitories, study halls,canteens on campus. The finder would onlybe able to read the opening line withoutunfolding the entire letter. The finder wasthen invited to report the change of address.

Results

Among first year students, the campaignobtained more than 80% awareness andthe number of students reporting thechange of address has never been so high.

NORWEGIAN POST

PAGE 34 DIRECT MAIL CASES NORWEGIAN POST

PAGE 35

Brief

Inform recently arrived students at theUniversity of Oslo to report their changeof address.

Solution

A number of personal letters were writtenand were “left behind” on tables, benchesand desks in dormitories, study halls,canteens on campus. The finder would onlybe able to read the opening line withoutunfolding the entire letter. The finder wasthen invited to report the change of address.

Results

Among first year students, the campaignobtained more than 80% awareness andthe number of students reporting thechange of address has never been so high.

NORWEGIAN POST

PAGE 34 DIRECT MAIL CASES NORWEGIAN POST

PAGE 37

DIRECT MAIL

PAGE 36 DIRECT MAIL CASES VOLKSWAGEN TOURAN

Brief

Create awareness for VW’s Touran lateentrance in the compact MPV marketand use safety as a credible and differ-entiating story.

Solution

A mail pack using the spelling themeand bringing the car to life in a lightand playful way. While its clean andsimple design reflects all the traditionsof Volkswagen, the pack also combinesinteractivity and child design touchessuch as rounded corners and an “Age 3+”symbol.

Results

158,974 households mailed, 9,611 pros pectsgenerated, with a response rate of 6.05%outperforming Volkswagen’s expectations.

VOLKSWAGEN TOURAN“CAN YOU SPELL SAFETY?”

PAGE 37

DIRECT MAIL

PAGE 36 DIRECT MAIL CASES VOLKSWAGEN TOURAN

Brief

Create awareness for VW’s Touran lateentrance in the compact MPV marketand use safety as a credible and differ-entiating story.

Solution

A mail pack using the spelling themeand bringing the car to life in a lightand playful way. While its clean andsimple design reflects all the traditionsof Volkswagen, the pack also combinesinteractivity and child design touchessuch as rounded corners and an “Age 3+”symbol.

Results

158,974 households mailed, 9,611 pros pectsgenerated, with a response rate of 6.05%outperforming Volkswagen’s expectations.

VOLKSWAGEN TOURAN“CAN YOU SPELL SAFETY?”

PAGE 39PAGE 38 DIRECT MAIL CASES RABOBANK INTERNET BANKING

Brief

Develop a way to persuade people who are50-60 years old to give internet banking a chance.

Solution

The oldest client of the bank (Mrs. De Vries,92 years old) introduces enthusiasticallyinternet banking. She promotes the serviceas “really something for youngsters”.

Results

Out of 113,552 people aged 50-60 yearsmailed, 6,118 (5.4%) came to the bankfor a demonstration and bought (210)the internet starter kit.

RABOBANK INTERNET BANKING

PAGE 39PAGE 38 DIRECT MAIL CASES RABOBANK INTERNET BANKING

Brief

Develop a way to persuade people who are50-60 years old to give internet banking a chance.

Solution

The oldest client of the bank (Mrs. De Vries,92 years old) introduces enthusiasticallyinternet banking. She promotes the serviceas “really something for youngsters”.

Results

Out of 113,552 people aged 50-60 yearsmailed, 6,118 (5.4%) came to the bankfor a demonstration and bought (210)the internet starter kit.

RABOBANK INTERNET BANKING

PAGE 41PAGE 40 DIRECT MAIL CASES UNESCO FUNDRAISING

Brief

Generate funds to retrieve and renovatethe cultural assets after the Iraq war.

Solution

A direct mail piece, sent to the 100wealthiest and most influential Germans –designed like a historical binding with thetitle “The cultural treasures of Iraq”. Afteropening the book, the reader gets surprisedby violently torn-out pages – a symbolicalconfrontation with the incidents in Iraq.

Results

Although UNESCO may not announcethe exact amount of donations, thecommission was very amazed about the contributions, sometimes even five-digits high – an outstanding success.

UNESCO FUNDRAISING

PAGE 41PAGE 40 DIRECT MAIL CASES UNESCO FUNDRAISING

Brief

Generate funds to retrieve and renovatethe cultural assets after the Iraq war.

Solution

A direct mail piece, sent to the 100wealthiest and most influential Germans –designed like a historical binding with thetitle “The cultural treasures of Iraq”. Afteropening the book, the reader gets surprisedby violently torn-out pages – a symbolicalconfrontation with the incidents in Iraq.

Results

Although UNESCO may not announcethe exact amount of donations, thecommission was very amazed about the contributions, sometimes even five-digits high – an outstanding success.

UNESCO FUNDRAISING

PAGE 43PAGE 42 DIRECT MAIL CASES GUINNESS

Brief

Grow the base of the Guinness relationshipmarketing programme and encouragebrand affinity.

Solution

Consumers receive communications atkey times in the consumption calender– e.g. Christmas and St. Patrick’s Day.They also receive mailings to supportnew product innovations and key interestareas like rugby.

Results

The programme has been successfullyused to recruit in a 6 months periodover 500,000 consumers at a consider-able lower cost. Attitude to brandand memorability of the creative ishigh and the programme has had anoveral l successful contr ibut ion toGuinness'marketing efforts.

GUINNESSRELATIONSHIP MARKETING

PAGE 43PAGE 42 DIRECT MAIL CASES GUINNESS

Brief

Grow the base of the Guinness relationshipmarketing programme and encouragebrand affinity.

Solution

Consumers receive communications atkey times in the consumption calender– e.g. Christmas and St. Patrick’s Day.They also receive mailings to supportnew product innovations and key interestareas like rugby.

Results

The programme has been successfullyused to recruit in a 6 months periodover 500,000 consumers at a consider-able lower cost. Attitude to brandand memorability of the creative ishigh and the programme has had anoveral l successful contr ibut ion toGuinness'marketing efforts.

GUINNESSRELATIONSHIP MARKETING

PAGE 45

CONSUMER BEHAVIOUR

YOU LOVE ME, YOU DON’T, YOU LOVE ME…

ADVERTISERS AND AGENCIES ALIKE ARE CONVINCED OF THEPOWER AND VALUE OF DIRECT MAIL. HOWEVER, VARIOUSCONSUMER INTEREST GROUPS HAVE ARGUED THAT DIRECTMAIL CAN BE IRRITATING OR IS NOT VALUED BY CONSUMERS.A DV E R T I S E R S H AV E R E S P O N D E D TO T H E S E C R I T I C S B YENABLING CONSUMERS TO ACTIVELY SAY YES TO RECEIVE MAIL.

PAGE 44

5

PAGE 45

CONSUMER BEHAVIOUR

YOU LOVE ME, YOU DON’T, YOU LOVE ME…

ADVERTISERS AND AGENCIES ALIKE ARE CONVINCED OF THEPOWER AND VALUE OF DIRECT MAIL. HOWEVER, VARIOUSCONSUMER INTEREST GROUPS HAVE ARGUED THAT DIRECTMAIL CAN BE IRRITATING OR IS NOT VALUED BY CONSUMERS.A DV E R T I S E R S H AV E R E S P O N D E D TO T H E S E C R I T I C S B YENABLING CONSUMERS TO ACTIVELY SAY YES TO RECEIVE MAIL.

PAGE 44

5

PAGE 47

Interactivity is more and more appreciated.Customers and companies are morefamiliar with raising questions andanswering them. Most companies have aproper department handling incomingquestions and complaints from customers.And companies are inviting customers toreact, which they do.

The key item in direct mail is, of course,response rates. How many people replyto a direct mail piece? This figure dependson a number of factors: the address listused, the offer, the timing, the creativeexecution, the incentive, the type of productor service, the familiarity with the productor service.

Reacting to a direct response advertise-ment, commercial or mailing is verypopular. The figures below show whatpercentage of the British populationreacted in 2003:

Medium Reacted in 2003 %

Direct mail 60Newspapers & magazines 55Television 25Leaflets 24Internet 15Radio 6Outbound telemarketing 7SOURCE: DMIS 2004 (9)

The database is the most important lever.Addressing a well-defined, limited targetgroup will outscore an ill-defined, broadtarget group. Drayton Bird — a directmarketing expert — estimates that a gooddatabase might imply a six-times higherresponse rate than a poor database(13).Other factors that influence resultsare: (difference between best and worse)

Offer x 2Timing x 2Creative x 1,35Response possibilities x 1,2

CONSUMERS RESPONDING

PAGE 46 CONSUMER BEHAVIOUR CONSUMERS RESPONDING

What determines success in direct mail?

Database 50%Offer 30%Creative 20%SOURCE: PROFESSOR SIEGFRIED VÖGELE

Once your direct mail has landed ondoormats, you need the consumers toopen and read the content. The enve-lope has to motivate them to open it.Size, text and pictures will help toachieve this.

What do people do with direct mail?

Opened and read 40%

Opened only 20%

Not opened 40%

SOURCE: CONSUMER DIRECT MAIL TRENDS SURVEY (14)

After the consumers read the content,we want them to act. To stimulate peopleto react, certain mailings make people“work” with the content. This involvementbrings them to a phase close to acting.But response deadlines, “early bird”price advantages and limited offersstimulate consumers to act on the spot.

The following table from a UK surveysummarises average response rates:

Average response rates in the UK

Direct mail to consumers 11,3%Direct mail to businesses 9,9%Door drops 6,5%SOURCE: RESPONSE RATES SURVEY 2003 (15)

Of the consumers who bought goodsand services in response to direct mail,44% were very satisfied and only 11%showed some dissatisfaction.

B-to-B direct mail faces an extrathreshold to response: filtering mail by other than the addressed person(secretary, mail room, reception, etc.).

Yet in the UK, only 15% of companiesfilter mail before passing it on tomanagers. And these managers open66% of direct mail they receive andfilterers 80%.

PAGE 47

Interactivity is more and more appreciated.Customers and companies are morefamiliar with raising questions andanswering them. Most companies have aproper department handling incomingquestions and complaints from customers.And companies are inviting customers toreact, which they do.

The key item in direct mail is, of course,response rates. How many people replyto a direct mail piece? This figure dependson a number of factors: the address listused, the offer, the timing, the creativeexecution, the incentive, the type of productor service, the familiarity with the productor service.

Reacting to a direct response advertise-ment, commercial or mailing is verypopular. The figures below show whatpercentage of the British populationreacted in 2003:

Medium Reacted in 2003 %

Direct mail 60Newspapers & magazines 55Television 25Leaflets 24Internet 15Radio 6Outbound telemarketing 7SOURCE: DMIS 2004 (9)

The database is the most important lever.Addressing a well-defined, limited targetgroup will outscore an ill-defined, broadtarget group. Drayton Bird — a directmarketing expert — estimates that a gooddatabase might imply a six-times higherresponse rate than a poor database(13).Other factors that influence resultsare: (difference between best and worse)

Offer x 2Timing x 2Creative x 1,35Response possibilities x 1,2

CONSUMERS RESPONDING

PAGE 46 CONSUMER BEHAVIOUR CONSUMERS RESPONDING

What determines success in direct mail?

Database 50%Offer 30%Creative 20%SOURCE: PROFESSOR SIEGFRIED VÖGELE

Once your direct mail has landed ondoormats, you need the consumers toopen and read the content. The enve-lope has to motivate them to open it.Size, text and pictures will help toachieve this.

What do people do with direct mail?

Opened and read 40%

Opened only 20%

Not opened 40%

SOURCE: CONSUMER DIRECT MAIL TRENDS SURVEY (14)

After the consumers read the content,we want them to act. To stimulate peopleto react, certain mailings make people“work” with the content. This involvementbrings them to a phase close to acting.But response deadlines, “early bird”price advantages and limited offersstimulate consumers to act on the spot.

The following table from a UK surveysummarises average response rates:

Average response rates in the UK

Direct mail to consumers 11,3%Direct mail to businesses 9,9%Door drops 6,5%SOURCE: RESPONSE RATES SURVEY 2003 (15)

Of the consumers who bought goodsand services in response to direct mail,44% were very satisfied and only 11%showed some dissatisfaction.

B-to-B direct mail faces an extrathreshold to response: filtering mail by other than the addressed person(secretary, mail room, reception, etc.).

Yet in the UK, only 15% of companiesfilter mail before passing it on tomanagers. And these managers open66% of direct mail they receive andfilterers 80%.

PAGE 49

Budget allocation to direct mail isincreasing. Today, 25% of marketingcommunication budgets are spent ondirect mail across Europe. One of thelargest markets is the UK, wheredirect mail expenditure has grown by165% over the past 13 years. It is esti-mated that direct mail generates £26billion worth of income for consumeradvertisers every year in the UK.

How much we buy via mail(per capita in 2002 in euros)

Germany 2 258United Kingdom 2 226Norway 2 188Switzerland 2 181Finland 2 147Austria 2 145France 2 145Netherlands 2 136Denmark 2 121Sweden 2 106Belgium 2 64

SOURCE: Fedma 2004 (16)

“Direct marketing, through its greatermeasurement and targeting, is leadingthe recovery of an industry that hassuffered greatly over the past fewyears.” Sir Martin Sorell(17)

AM I WORTH MORE AND MORE MONEY?

PAGE 48 CONSUMER BEHAVIOUR WILL YOU SAY YES OR NO? / AM I WORTH MORE AND MORE MONEY?

Consumers have a love-hate relation-ship with direct mail. On the one hand,they continue to object to direct mail —and even more strongly to tele-marketing.This has to do with the intrusiveness ofthe medium. On top of that, consumerswant to stay in control of the messagessent to them.

On the other hand, there is a growingconfidence where it comes to dealingdirectly with companies, stimulated bythe use of various websites and callcentres which allow for interactivity.

The intrusiveness has led to responsesfrom the on-line and off-line businesses:both have applied systems that allowcustomers to agree to being mailed.For direct mail, customers can make useof the Robinson list. This is a list usedin different countries in Europe that —after registration — will block indicatedmail and e-Mail addresses. This preventsany further mail being received at theseaddresses. Furthermore, advertisers

use so-called “opt-in” questions wherecustomers have to indicate whether theywant to continue to receive mail, or “opt-out” to discontinue. As already mentioned,some years ago, Seth Godin introducedthe term “Permission Marketing”.Customers should be able to agree to receive commercial messages fromadvertisers. Obtaining permission givesadvertisers non-intrusive access to theseconsumers. The advertisers’ messagesare expected and the chances of theconsumers paying attention to themincrease.

Permission marketing will preventconsumers receiving unwanted mail.The risk of breach of privacy continuesto exist, especially for on-line direct mail.Consumers can control access of off-linemail by supplying limited information.However, on-line direct mail consumersare not always aware of what companiesknow about them or have secretly gathereddirectly from the computer through, forexample, “cookies”.

WILL YOU SAY YES OR NO?

PAGE 49

Budget allocation to direct mail isincreasing. Today, 25% of marketingcommunication budgets are spent ondirect mail across Europe. One of thelargest markets is the UK, wheredirect mail expenditure has grown by165% over the past 13 years. It is esti-mated that direct mail generates £26billion worth of income for consumeradvertisers every year in the UK.

How much we buy via mail(per capita in 2002 in euros)

Germany 2 258United Kingdom 2 226Norway 2 188Switzerland 2 181Finland 2 147Austria 2 145France 2 145Netherlands 2 136Denmark 2 121Sweden 2 106Belgium 2 64

SOURCE: Fedma 2004 (16)

“Direct marketing, through its greatermeasurement and targeting, is leadingthe recovery of an industry that hassuffered greatly over the past fewyears.” Sir Martin Sorell(17)

AM I WORTH MORE AND MORE MONEY?

PAGE 48 CONSUMER BEHAVIOUR WILL YOU SAY YES OR NO? / AM I WORTH MORE AND MORE MONEY?

Consumers have a love-hate relation-ship with direct mail. On the one hand,they continue to object to direct mail —and even more strongly to tele-marketing.This has to do with the intrusiveness ofthe medium. On top of that, consumerswant to stay in control of the messagessent to them.

On the other hand, there is a growingconfidence where it comes to dealingdirectly with companies, stimulated bythe use of various websites and callcentres which allow for interactivity.

The intrusiveness has led to responsesfrom the on-line and off-line businesses:both have applied systems that allowcustomers to agree to being mailed.For direct mail, customers can make useof the Robinson list. This is a list usedin different countries in Europe that —after registration — will block indicatedmail and e-Mail addresses. This preventsany further mail being received at theseaddresses. Furthermore, advertisers

use so-called “opt-in” questions wherecustomers have to indicate whether theywant to continue to receive mail, or “opt-out” to discontinue. As already mentioned,some years ago, Seth Godin introducedthe term “Permission Marketing”.Customers should be able to agree to receive commercial messages fromadvertisers. Obtaining permission givesadvertisers non-intrusive access to theseconsumers. The advertisers’ messagesare expected and the chances of theconsumers paying attention to themincrease.

Permission marketing will preventconsumers receiving unwanted mail.The risk of breach of privacy continuesto exist, especially for on-line direct mail.Consumers can control access of off-linemail by supplying limited information.However, on-line direct mail consumersare not always aware of what companiesknow about them or have secretly gathereddirectly from the computer through, forexample, “cookies”.

WILL YOU SAY YES OR NO?

L I F EW I T HP R I N T

L I F EW I T HP R I N T

PAGE 53

CREATIVITY IS KEY BUT THE CONSUMER DECIDES

CREATIVITY IS ABOUT QUESTIONING THE RULES, ABOUT INNO-VATION, ABOUT TRANSLATING PRODUCT AND BRAND BENE-FITS INTO AN APPEALING, CONVINCING AND ENTERTAININGP I E C E O F C O M M E R C I A L C O M M U N I CAT I O N . C R E AT I V I T YBREAKS THE CLUTTER AND ADDS VALUE TO THE BRAND.CREATIVITY IS ABOUT UNDERSTANDING THE CONSUMER ANDUSING THE RIGHT EMOTION. CREATIVITY IS NO SCIENTIFICPROCESS.

PAGE 52

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PAGE 53

CREATIVITY IS KEY BUT THE CONSUMER DECIDES

CREATIVITY IS ABOUT QUESTIONING THE RULES, ABOUT INNO-VATION, ABOUT TRANSLATING PRODUCT AND BRAND BENE-FITS INTO AN APPEALING, CONVINCING AND ENTERTAININGP I E C E O F C O M M E R C I A L C O M M U N I CAT I O N . C R E AT I V I T YBREAKS THE CLUTTER AND ADDS VALUE TO THE BRAND.CREATIVITY IS ABOUT UNDERSTANDING THE CONSUMER ANDUSING THE RIGHT EMOTION. CREATIVITY IS NO SCIENTIFICPROCESS.

PAGE 52

6

PAGE 55

Today, direct mail has become an exten-sion of the brand experience as expressedin the shop, through advertising or via thepackaging. The image expressed throughdirect mail is consistent and coherent withother means of communication. It adds upto this overall brand feeling.

Creative people value the individualityand the lack of constraints that directmail offers. Writing to clients, prospects,new parents and newly-retired peoplerequires a lot of empathy and under-standing of specific situations. Directmail combined with the latest digitalprinting technology offers the best possibleway to personalise the message and toadd whatever you want to a letter.

Measuring results is a highly rationalprocess: adding up response and conver-sion rates, relating these to cost anddetermining the cost per inquiry or sale.Evaluating creativity by looking only atthe cost aspect might kill it. Creativitydoesn’t always payoff in additionalresponses or higher levels of conversion.Yet it does make the difference for certainbrands in a cluttered world with time-pressured consumers. It differentiatesthe brand, gives the brand the “edge”,and makes a brand “highly involving”.Think about the Benetton advertising ofthe mid-1990s, the Wonderbra ads withEva Herzegovina, or the Nike commercials.

When is creativity not attractive any more?Alessi’s view on creativity includes thenotion of success and also of failure.Out of a thousand designs he makes, heguesses that 200 will be a failure, whichhe accepts. These rejected designs indi-cate the border of what consumerswant, beyond that point the creativity isnot valued. Yet this point changes overtime: consumers move the goal posts.

Creativity has been applied differently indirect mail. During the 1980s, the focuswas very much on applying consumers’reading patterns to creating mail packs.

The work of Siegfried Vögele was the basisof this. His research determined whatenvelopes should look like, how lettersshould be laid out and how leaflets shouldbe structured.

Later on, when advertising agenciesunderstood that advertising needed toentertain consumers and be likeable,this also became key to the developmentof mailings. With more emphasis onongoing one-to-one communication andthe increase of CRM, direct mail needed astronger creative edge in line with thebrand experience as expressed via othercommunication tools.

HOW FAR CAN YOU INNOVATEAND STILL GET RESULTS?

PAGE 54 CREATIVITY IS KEY BUT … HOW FAR CAN YOU INNOVATE AND STILL GET RESULTS?

ONLY THE CONSUMER IS RIGHT! ASK ZARA. ITS CREATIVITY IS MEASUREDEVERY DAY IN THE SHOPS, AND IF THE LATEST COLLECTION DOESN’T SELL WELL, THE NEW ONE IS IN THE SHOPS 14 DAYS LATER!

A B S O L U T

V O D K A I S

A GREAT

EXAMPLE

O F T H E

P O W E R

OF CREATIVITY.

IN A MARKET OF MANY

VODKAS, IT IS CLEARLY

D I F F E R E N T F R O M S U C H

B R A N D S A S S M I R N O F F ,

FINLANDIA AND STOLICHNAYA.

THE ABSOLUT PERFECTION

CAMPAIGN THAT STARTED IN

1980 (25 YEARS AGO!) IS

STILL RUNNING AND THE

700+ ADS THAT HAVE BEEN

PRODUCED SINCE THEN ARE

STILL DEMONSTRATING THE

VITALITY OF THE CAMPAIGN.

THE CAMPAIGN HAS INSPIRED

MORE THAN 400 ARTISTS TO

INTERPRET ABSOLUT VODKA.

AND THE CAMPAIGN IS AMONG

THE TOP 10 CAMPAIGNS OF

THE 20TH CENTURY. ON TOP

OF THIS, THE CAMPAIGN

HAS BOOSTED SALES, FROM

90,000 LITRES AT THE START

OF THE CAMPAIGN TO 76.1

MILLION LITRES IN 2004.

TODAY, 500,000 BOTTLES

A D AY A R E P R O D U C E D :

A CLEAR DEMONSTRATION

T H AT C R E AT I V I T Y WO R K S .

PAGE 55

Today, direct mail has become an exten-sion of the brand experience as expressedin the shop, through advertising or via thepackaging. The image expressed throughdirect mail is consistent and coherent withother means of communication. It adds upto this overall brand feeling.

Creative people value the individualityand the lack of constraints that directmail offers. Writing to clients, prospects,new parents and newly-retired peoplerequires a lot of empathy and under-standing of specific situations. Directmail combined with the latest digitalprinting technology offers the best possibleway to personalise the message and toadd whatever you want to a letter.

Measuring results is a highly rationalprocess: adding up response and conver-sion rates, relating these to cost anddetermining the cost per inquiry or sale.Evaluating creativity by looking only atthe cost aspect might kill it. Creativitydoesn’t always payoff in additionalresponses or higher levels of conversion.Yet it does make the difference for certainbrands in a cluttered world with time-pressured consumers. It differentiatesthe brand, gives the brand the “edge”,and makes a brand “highly involving”.Think about the Benetton advertising ofthe mid-1990s, the Wonderbra ads withEva Herzegovina, or the Nike commercials.

When is creativity not attractive any more?Alessi’s view on creativity includes thenotion of success and also of failure.Out of a thousand designs he makes, heguesses that 200 will be a failure, whichhe accepts. These rejected designs indi-cate the border of what consumerswant, beyond that point the creativity isnot valued. Yet this point changes overtime: consumers move the goal posts.

Creativity has been applied differently indirect mail. During the 1980s, the focuswas very much on applying consumers’reading patterns to creating mail packs.

The work of Siegfried Vögele was the basisof this. His research determined whatenvelopes should look like, how lettersshould be laid out and how leaflets shouldbe structured.

Later on, when advertising agenciesunderstood that advertising needed toentertain consumers and be likeable,this also became key to the developmentof mailings. With more emphasis onongoing one-to-one communication andthe increase of CRM, direct mail needed astronger creative edge in line with thebrand experience as expressed via othercommunication tools.

HOW FAR CAN YOU INNOVATEAND STILL GET RESULTS?

PAGE 54 CREATIVITY IS KEY BUT … HOW FAR CAN YOU INNOVATE AND STILL GET RESULTS?

ONLY THE CONSUMER IS RIGHT! ASK ZARA. ITS CREATIVITY IS MEASUREDEVERY DAY IN THE SHOPS, AND IF THE LATEST COLLECTION DOESN’T SELL WELL, THE NEW ONE IS IN THE SHOPS 14 DAYS LATER!

A B S O L U T

V O D K A I S

A GREAT

EXAMPLE

O F T H E

P O W E R

OF CREATIVITY.

IN A MARKET OF MANY

VODKAS, IT IS CLEARLY

D I F F E R E N T F R O M S U C H

B R A N D S A S S M I R N O F F ,

FINLANDIA AND STOLICHNAYA.

THE ABSOLUT PERFECTION

CAMPAIGN THAT STARTED IN

1980 (25 YEARS AGO!) IS

STILL RUNNING AND THE

700+ ADS THAT HAVE BEEN

PRODUCED SINCE THEN ARE

STILL DEMONSTRATING THE

VITALITY OF THE CAMPAIGN.

THE CAMPAIGN HAS INSPIRED

MORE THAN 400 ARTISTS TO

INTERPRET ABSOLUT VODKA.

AND THE CAMPAIGN IS AMONG

THE TOP 10 CAMPAIGNS OF

THE 20TH CENTURY. ON TOP

OF THIS, THE CAMPAIGN

HAS BOOSTED SALES, FROM

90,000 LITRES AT THE START

OF THE CAMPAIGN TO 76.1

MILLION LITRES IN 2004.

TODAY, 500,000 BOTTLES

A D AY A R E P R O D U C E D :

A CLEAR DEMONSTRATION

T H AT C R E AT I V I T Y WO R K S .

As with TV commercials and magazineads, advertisers and agencies recogniseand honour great direct mail. Two criteria— creativity and results — are used todecide the winners.

The best-known platform is Canneswhere, together with the best TVcommercials and print advertisements,the most creative and most effectivedirect mail worldwide is honoured.These Lions Direct Awards marry thecriteria shared by advertisers andagencies. Some winning cases areillustrated in this booklet.

The US direct marketing association(DMA) organises the Echo Awards everyyear which celebrate excellent strategy,breakthrough creativity and brilliantresults.

The US Caples Award — named afterthe copywriter of the famous directresponse advertisement with the heading“They all laughed when I sat down atthe piano. But when I started to play… ”— honours creative excellence. Creativesjudge the mailings on the most innovativedirect marketing solution.

All of these worldwide awards offergreat inspiration and learnings forprofessionals.

WHO REWARDS WINNING WAYS?

PAGE 56 CREATIVITY IS KEY BUT … WHO REWARDS WINNING WAYS? / 11 UNCREATIVE WAYS TO MAKE…

ELEVEN UNCREATIVE (BUT TESTED) WAYS TO MAKE YOUR LAYOUT WORK HARDERFROM COMMONSENSE DIRECT MARKETING, DRAYTON BIRD (13)

1 EASY-TO-READ TYPEFACES

2 CLEAR CONTRAST

3 DON’T CHANGE TYPEFACES UNNECESSARILY

4 NARROW MEASURE

5 NO LONG UNBROKEN BLOCKS OF TYPE WHICH ARE HARD TO READ

6 TRY TO JUSTIFY YOUR COLUMNS

7 HUGE HEADINGS ARE STUPID

8 A HEADLINE SHOULD BE A HEADLINE, NOT A BASELINE

9 DON’T MISLEAD THE READER’S EYE

10 MAKE SURE THE COUPON IS EASY TO CUT OUT

11 LAY OUT YOUR LETTERS

PAGE 57

DIAGNOSIS: MISCONCEPTION

RECOMMENDED AID:

SUGGESTED DOSAGE:Use one mailing every two months. Higher dosage canincrease effectiveness when content remains interesting.

PATIENT:

PRESCRIPTION INFORMATION:This prescription contains high levels of “bacteria efficiens” which stimulatesnon-aggressive response. Direct mail also has “creativity” as an activeingredient, this helps in building relationships with users. The reply cardshould always be completed till the last question.

PRINT FIRST AIDLIFE WITH PRINT DIAGNOSIS

SYMPTOMS:Few telephone inquiries, limited coupon responses, high churn, poor brand image and low sales.

CAUSES:Wrong choice of communication media. Lack of interactivity and response possibilities. Copy woolly and absence of clear customer benefit.

DIRECT MAIL

JOHN&PAUL COMPANY

As with TV commercials and magazineads, advertisers and agencies recogniseand honour great direct mail. Two criteria— creativity and results — are used todecide the winners.

The best-known platform is Canneswhere, together with the best TVcommercials and print ad