Rethink direct mail to reach your target market

Kasasa CMO, Keith Brannan

The marketing landscape has changed

Let’s back up In our last webinar we discussed:

  The importance of cross-channel marketing   The effectiveness of a hyper-personalized email strategy   The need for personalized conversations across all channels

market more efficiently and consistently

Community financial institutions have to

to remain relevant.

Direct mail is not dead.

   “The reports of my death have been

greatly exaggerated.”

98% of people check their mail daily. (USPS)

57% of Millennials have made purchases based on direct mail offers. (Felicia Savage, “Don’t Hide In The Bushes: How To Use Direct Mail To Target Millennials,” PERQ, October 28, 2013)

What you can do with direct mail

Build relationships Direct mail can be extremely targeted. You can define the market you’re trying to reach and send just to those targets. But how can you get the right consumer data so you can know who to mail to?

Collect it yourself

Purchase access

Work with a partner that has access. 1 2 3

Cross sell, upsell, and retain Direct mail campaigns for cross-selling can make account holders more profitable, bring in more deposits at a very low cost, and be the start of a long and engaged relationship. Cross sell:

  Loans   Saving accounts   ID fraud protection

Upsell:   Product utilization   More utilization

from account holders

Retain:   Welcome   Birthdays   Anniversaries of

service

70-80% of consumers say they open almost all of their mail –– including “junk mail.” (DMA, 2014)

Once you get into the right consumer’s hands, you have to connect with them.

But it’s not HOW you connect with them, it’s about WHO you connect with.

The only marketing tactic that puts you right in a consumer’s home

Direct mail = An opportunity to create a connection that enhances digital and email channels.

vs

Make it compelling. The more it feels like you’re talking directly to the consumer, the more effective your campaign will be. One way is to personalize:

  Name   Location   Account history   Reminders   Personalized URLs

The other way is to make a compelling offer.

Direct mail is a complement to your digital strategy

Consumers spend 25% more when a business uses a mix of direct mail and email marketing.

Pitfalls to avoid

       

   

Mailing just to mail Sending the same

message to all demographics

Creative that doesn’t capture attention

An offer that doesn’t entice the consumer

Not knowing the

preferences of the consumer

Steps to a direct mail campaign

  Determine objective   Use data to figure out target audience   Create a segmented mailing list   Develop messaging and design   Create call to action and offer

  Make a landing page for recipients   Choose a print and distribution

vendor   Mail the campaign   Track results

For any marketing organization, integrated direct mail can be:

Difficult Costly Time Consuming

But technology to make it easy is now within reach.

Direct mail case study Midsize credit union

Case study: Midsize credit union

Entice members to open relationship-building, NII-earning transactional accounts.

   OBJECTIVE PLAN

Deploy a 60-day upsell campaign into Kasasa Checking, cross-sell campaign into Kasasa Checking, and a prospecting campaign

Case study: Midsize credit union

$3.2 million in new, non-Kasasa deposit balances

$107,364 net increase in checking balances

296 non-Kasasa deposit accounts opened  

44 new Kasasa

accounts  

Case study: Midsize credit union

$3.1 million increase in loan balances across 164 new loans.

Case study: Midsize credit union

Industry Average

2.28%

Kasasa Checking

2.59%

Upsell Response Rate

Industry Average

$250.00

Kasasa Checking

$151.50

Campaign Cost-Per-Account

Let’s get even better

What if …

Target consumers 1.5x – 3x as likely to open an account 1

3 Utilize technology to automate the marketing with no new staffing

Leverage network data insights and reduced pricing 4

2 Multi-Channel Marketing to increase program performance 3x

Multi-Channel consumer engagement

1

15 45 30 60 1

60

Cross – Channel Details

One list to drive all engagement

Personalized creative

Cross channel alternating cadence supported by consistency in social channel

Direct Mail, Social, Email utilizing new platform

Let’s recap

This is all it takes to create a cross-channel strategy that includes direct mail:   Creative   Knowledge of the consumer   Segmentation

  Access to the channels where they are consuming media

  Compliance

  Measurability testing   Data management   Resources to provide process improvements

  Predictive models   Workflow improvements

  Pricing improvements

...Now do that every day

Kasasa has the resources:

  Data on consumers who are 1.5-3X as likely to buy   Robust targeting   High-quality prospect lists   Creative assets   Campaigns that run continuously   Compliance language

Cross-channel marketing and integration at Kasasa Kasasa has access to material and programs to run across many channels:  Direct mail  Digital  Social  Email  Television  Pandora  In-branch  Events

               

Our goals  Reduce the time and energy required to engage consumers.  Create a shared pool of knowledge that helps improve our clients' marketing strategies.  Develop more profitable marketing opportunities for every financial institution in the Kasasa network.

153% Kasasa direct mail sees an average marketing ROI of

(Kasasa analytics) 27% the average ROI for direct mail in general. (2016 DMA Response Rate Report)

The Marketing Landscape — 2017 — 5000 companies

Fast growing industries create risk  Too many options  Time it takes to decide on a path  Risk of meeting business requirements   Implementation risks  Resource and skill risks  Execution risks after implementation

When evaluating vendors, avoid:  Unnecessary features  No reporting capabilities  Systems requiring certain expertise  Lack of financial service knowledge  Systems that require daily attention from your team  No tested, proven campaign strategies

What’s your direct mail strategy?

Questions?