Respondents to a recent BtoB Marketing Priorities and Plans Survey said they planned on reducing direct mail (40%) and print (63%) spending while increasing spending online in 2010. For many this is driven by cost cutting efforts as a result of the current economic downturn.
The Wall Street Journal takes a look at small businesses going back to direct mail after switching to email marketing.
According to the WSJ report Per Annum Inc saw sales decline 25% after it suspended a $20,000 annual direct mail to use cheaper email marketing. The company later sent a direct mail postcard and sales picked up.
Peter Taffae founder of a wholesale insurance broker ExecutivePerils said customers contacted him after they stopped receiving his humorous postcards which depicted movie spoofs.
It's up to us in the printing industry to help businesses navigate the multi-channel world we live in today. As Eric Anderson, a professor of marketing at Northwestern University's Kellogg School of Management states in the article, "business owners are trying to figure out how to integrate Web marketing—such as email campaigns, banner ads and social-networking sites—with direct mail." Many of us have the know-how to achieve this integration.
Discussion
By Joe Kern on Jan 13, 2010
Printers really need to learn how to leverage the power of online marketing and become Marketing Service Providers, as well as Print Service Providers.
We also need to develop strategic campaigns for our customers that utilize integrated marketing. Combine a direct mailing marketing campaign along with on online version.
By Michael J on Jan 13, 2010
Adam,
Good post. But a quibble with "Many of us have the know-how to achieve this integration."
My bet is that actually a pretty small number of "us" know how to do it without disrupting and thus jeopardizing the print products which takes lots of focus, discipline and concentration.
By Patrick Henry on Jan 13, 2010
The "Print in the Mix" clearinghouse at RIT is full of testimony about the continuing value of direct mail:
http://printinthemix.cias.rit.edu/summaries?category_id=8&o=s
http://printinthemix.cias.rit.edu/fastfacts?category_id=8&o=f
By Shelley Sweeney, Xerox on Jan 13, 2010
Without a doubt, we have reached a new era in marketing that requires more integration between print, web and email. And just as the Wall Street Journal report found, direct-mail is not obsolete. There is still value in direct-mail marketing but companies must take a different approach to it. The old school method of “spray and pray” is no longer a viable option and instead companies need to make direct mail contact personalized and pertinent to the consumer. Adding relevant information will make marketing messages stand out and increase response rates.
I’ll be talking about this very topic at the upcoming PODI AppForum alongside representatives from Ford Motor Co. and Budco highlighting the recent success they had with a highly personalized direct-mail campaign — a 5.7 increase in the response rate and a 35.7 percent increase in sales penetration!
By James Michelson, VDP Web on Jan 14, 2010
Not only does the print industry face a challenge at producing cross media campaigns as Marketing Service Providers, we must also learn to sell these channels. The sale jumps from the purchasing agent to the C-suite and requires a new set of skills. While at PODI, consider taking in the session “Increase Revenue – Keeping More of your Customer’s Marketing Budget” and discover new ways to create output & online activity that puts more ink on paper.
By Harvey on Jan 14, 2010
Ahh! The unbelievable power of print. Again, when done right, direct mail has the visual power to get more attention, captivate the receiver, create inter-action, motivate the response and generate the conversion better than any other stand-alone media available. When you combine it with a well developed multi-channel program, dollar for dollar the R.O.I. is amazing. And, with the power of digital, you can parse the data and version the message and graphics to generate even higher responses.
By Frank on Jan 14, 2010
If B2B electronic marketing survives the "White List", "Firewall", "Spam Filter", etc., becomes In Box Clutter. Worse in the B2C space with only having 30% contact coverage and no reliable forwarding system. Print DM has 100% list coverage in the B2C and B2B space plus a reliable forwarding and now IMB tracking system. If you are launching a B2C campaign, do you only a 30% market reach?
By Michael J on Jan 14, 2010
Harvey,
Yep!
By Gordon W Stanley on Jan 14, 2010
The real message here is about the power of mastering cross-media. We always talk about serving the customer. How about asking the customers HOW they would like us to communicate with them. This knowledge will go a long way toward giving a marketer some clues about the mix of media for their basic communications. Of course you still have to test to expand your reach to new prospects. Many of my clients find print to be refreshing and very useful when trying to reach very busy people who are inundated with other media.
Keep the great news and articles coming.
By Holly Hagen, Dever Designs on Jan 14, 2010
I agree with Harvey. With the changing times of our electronic world we need to adapt and integrate digital marketing tools into our proven print marketing practices. People are being overloaded with e-marketing and appreciate the tactile feel of well crafted print materials. Our eyes and minds respond to print differently than images loading on our monitors. When one is given the marketing responsibility of their organization, they must be open minded but not go overboard as fads bombard us trying to convenience us to throw out the old and replace it with the latest and greatest. My advise, be open minded, explore, test new marketing directions, evaluate results and adapt as needed.
Holly
By Andy McCourt on Jan 14, 2010
This is all very encouraging, positive and about time. Emotional industry attachments aside, I really do believe well crafted, targetted DM print combined with a little web and email delivers astounding results. I wonder if any marketer is brave enough to try a print DM campaign for Viagra? The catchline writes itself: "Respond to this offer and we promise we won't send you any email spam!"
By Jiri Trnka on Jan 15, 2010
Personalization and targetting seems to me to be very important. Technologies for creating personalized printouts and web pages are available, but you neeed an analysis of target groups to be able to create right campaigns. As PSP, to be able to fulfill requirements of customer, I think it's a good idea to be able to offer multiple channels on one side and be able to help your customer to analyze response rates to go better targetting. As already mentioned here, why not to ask consumers, what do they preffer? That's then also very valuable input.
Again, information(targetting, personalization) is more important. If DM in any of the channels is targetting my needs, it is more important than type of channel.
By Harley on Jan 19, 2010
One thing that we never really take into account, as it relates to our largest customers, is the influence of their ad agency. Agency compensation for digital media is 2X that of traditional media accordng to the ANA. Small business typically follow the examples of larger, national companies.
Our industry has to do a better job of telling this story so as to remain competitive with digital media.
By Michael J on Jan 20, 2010
Harley,
I think your point is well taken, but I think it's been the same story since TV. The glory and money goes to television. Social media is not really very different. TV is sexy. Print is boring. Such has been our fate.
On the other hand, print and DM especially has had the most scientific metrics long before the cry for "data" was raised. From what I can see, it's useful to continue the Print is good, no fooling around conversation, but the world is moving much faster than is usually appreciated.
This morning I found a story from Mobile marketer with this snippet:
Scanbuy Inc. has launched a number of products for brands such as American Airlines, Volkswagen and Sprint with the use of bar codes.
“Mobile barcodes are an extremely easy and trackable way to mobilize any traditional media from print to packaging,” said Jonathan Bulkeley, CEO of Scanbuy, New York.
My sense is that going forward, educating ourselves about the precisely right project to sell is going to be much better use of our time than worrying about "educating the customer."
By Curtis Palmer on Jan 20, 2010
Being that we are in the unique position of having an internet service and printing services company we are able to guide our customers based on what their expectations are. We feel that direct mail marketing is much more successful compared to e-mail marketing... so many people nowadays just let e-mail go to spam filters, trash, etc. if they are not familiar with the sender. Direct mail will always have a stronger impact on the recipient, it all depends on if they need that product or service at the time they receive that direct mail marketing piece.
By Phyllis Speen on Jan 20, 2010
This highlights that no media or medium is a solo play. Once something becomes "hot" then it gets cluttered. That's when you need to move on.
The adage everything old is new again is in play here. Having a mixed campaign is the smartest approach. Being creative and unique stands out. DM always had an advantage especially since it used metrics & measurements to test & prove successful campaigns. With DM you don't need to boot up a computer, hope someone clicks & looks nor worry how the message opens on their computer & the colors look on their monitor. Consistent branding & messaging will always be a winner.
Print is here to stay will needs to always evolve like and other medium.
By Michael J on Jan 21, 2010
Phyllis,
Thank you for "The adage everything old is new again is in play here."
What has been done,will be done. There's nothing new under the sun. Just lots of distracting buzz.
Discussion
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