Your name

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Innovative Strategies to Grow Your Business
Name of event City, State
Your name Your title Date of event
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Agenda

• Media Trends
• The Value of Mail
• Address Quality
• Direct Mail Innovations

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Todays Media World
What about Mail?
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Direct Marketing Alternatives

• TELEVISION Powerful mix of imagery, sound,
  color (high impact). Emotional.
• - Increasingly
  fragmented impacted by technology
• RADIO Less expensive, distinct targeting, uses
  sound, short lead time.
• - Impacted by growth of
  Satellite Radio On-Demand Music
• INTERNET Cheap, quick, targeted, interactive,
  trackable, quick to implement.
• - Unsolicited and
  unknown emails are deleted.
• MAGAZINES Targets niche or mass audiences,
  longer life, strong imagery.
• - Becoming more
  specialized and Custom Publications are a growth
  area.

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Direct Marketing Alternatives

• NEWSPAPERS Like magazines, affordable,
  frequent, established shopping medium.
• - Losing
  market share
• OUTDOOR / IN-STORE Strong branding, lots of
  eyeballs, low cost.
• -
  Overwhelming and invasive
• Yellow Pages Mainstay for small business, ease
  of use
• -
  Advertising along side competition, localized
  costly

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2007 Advertising Spend
Total US Advertising Expenditure Projected 2007
292 B
Combined TV advertising spend is 23.1
Direct Mail is second only to TV in
total Advertising spend!
Projected Direct Mail Share of Total Advertising
Spend 2007 is 21.5
Projected Source Robert Coen, Insiders Report
December 2006
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Why Mail?

• Enhances Multi-Channel Marketing

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Why Mail?

• Businesses can track and increase profitability
• Keeps customers informed with relevant materials
• Mail creates satisfied and loyal customers
• Mail targets and builds relationships
• ROI Is Easily Measured

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Direct Mail can be used in ANY and EVERY Point of
the
Brand Preference Cycle
Direct Mail Works hard In Any Role In the
Brand Contact/ Preference/ Reaction Continuum
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Growing Evidence that Mail Works
Mail Moment
Household Diary
Catalog Research
UAA Cost Study
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The Mail Moment People Do It Every Day!

• 98 of consumers bring their mail into the home
  the same day it is delivered
• 72 of consumers bring the mail in at the first
  opportunity, when they first get home or when
  the mail arrives
• 77 of consumers sort their mail immediately
• 75 value the privacy of mail
• 63 said an interesting-looking piece caused
  them to open and read it.

CEO of The Mail
Source USPS 2004 Mail Moment Research Study
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The Mail Moment People Do It Every Day!

• Performs 3 Basic Jobs
• Browse for Consumption / Entertainment
• Manage Household Operations
• Manage Household Budgets

• Routine/Ritual
• Portable
• Tangible
• Non-Intrusive

7 Minutes a Day Sorting 30 Minutes a Day
Reading /Browsing
Source USPS 2004 Mail Moment Research Study
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Catalog Research Direct Mail Sells!

• comScore
• Global Information Provider
• Diverse Panel
• Real Time Data Capture
• Quantifies Statistical Data
• Mail drives traffic to your web sites

Source USPS 2004 Multi-Channel Catalog Research
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Catalog Research Hardcopy Sells!

• 63 of consumers enjoy browsing through catalogs
• 64 of consumers ordered from catalog recd in
  last 30 days
• 88 of consumers more likely to buy
• Recipients
• Spend twice as much as those who dont
• Account for 22 of web site traffic
• Account for 37 of its e-commerce dollars
• Increase online visits by 16
• View 22 more pages
• Spend 15 more time at retailers site
• Purchases result in 16 spending increase
• Over 2/3 of Gen X Y used offers sent via
  Direct Mail!

Source USPS 2004 Multi-Channel Catalog Research
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The Household Diary It Gets Peoples Attention!

• 21 of total Advertising dollars are spent on
  Direct Mail advertising
• 46 of households read the Direct Mail they
  received
• 39 of households find Direct Mail interesting
• 5.5 increase in Direct Mail households received
• Attracted to unique pieces having Impact and
  Differentiation!

Source Household Diary Study, FY 2006
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The Household Diary It Gets Peoples Attention!
Source Household Diary Study, FY 2006
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Undeliverable As Addressed Cost Study

• 1998 UAA Cost Study (Price Waterhouse)
• 9.3 Billion pieces
• 2004 UAA Cost Study (Christensen Associates)
• 9.7 Billion Pieces
• 1.2 B Single Piece / Other
• 8.5 B Work share
• Cost per piece
• Forwarding cost per piece 21.3
• Return cost per piece 51.3
• Waste cost per piece 4.4

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America is on the Move and Growing!
41 million Americans move
145 million total addresses
1.8 million new addresses
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Direct Mail Costs
DMA Statistical Fact Book 2006
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What Should You Be Doing?
Update
Correction
Validate
Standardize
CASSZIP4 Codes
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How Can You Succeed?

• For more information on USPS Addressing products
• http//ribbs.usps.gov RIBBS - NCSC
  Products, Services Publications
• http//www.usps.com/ncsc usps.com Address
  Quality Page
• http//ribbs.usps.gov/files/mtac/annual
  Address Quality Methodologies - Best Practices
• Contact the USPS National Customer Support Center
  _at_
• 1-800-238-3150
• Go to www.usps.com

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Research Findings

• Differentiation - Stand Out in the Mailbox
• Impact - Grab Attention Quickly
• Easy Targeting - Right Audience Right Message
• Measurability - Predict In-Home Delivery Dates
• Accurate Delvy - Get EVERY Message to the
  Customer
• Ease-of-Use - Convenient Ways to Make Mail

Source Various Research USPS House Hold Diary
Study, Mail Moment, Multi-Channel Catalog
Research, DMA Response Rates
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USPS Product Innovations
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Customized MarketMail
Impact in the Mailbox

• Odd-Shaped, Die-Cut Pieces
• Conveys messages in unique manner
• Jumps Out in the Mailbox!
• Flexible/Creative
• Cutouts
• Attachments/Pockets/Coupons
• Magnets
• Perforations

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Customized MarketMail

• Impact in the Mailbox
• Differentiation

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Customized MarketMail

• New Rates for FY07
• Standard Mail Regular rate - 46 cents
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• Standard Mail Nonprofit rate - 33.4 cents
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• Exploring Machineable Option
• Conducting Tests
• Identified Initial Shapes

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Repositionable Notes

• Value
• Actionable messaging
• Lives beyond the life of host piece
• Repositions to computer, telephone, refrigerator
• Possibilities
• Increased Open-Read Rates
• Increased Response Rates
• Increased ROI
• Applications
• Customer Acquisition/Retention
• Customer Relationship Management
• Customer Up-Selling

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Repositionable Notes
Flats

• Sticky-type notes
• Provides a significant and flexible marketing
  tool
• Enhances Brand Awareness
• Additional Promotional Impact

Impact
www.usps.com/repositionablenotes
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Easy Targeting Ride-Along for Periodicals

• Piggy-Back on an established vehicle
• Take advantage of existing relationships
• Preferred placement for your message
• Added value for subscribers
• Low postage costs

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Ride-Along Value

• Grab your customers attention
• Target your market locally, regionally,
  nationally
• Add new dimension to your message
• Include Catalogs, CDs, Product Samples
• Up to 3.3 oz.
• 15.5 per piece (as of July 15, 2007)

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Measurability CONFIRM

• Predict in-home Dates
• Time Multi-Channel Campaigns
• Track return mail
• Manage cash flow
• Manage future Mailings
• Manage fulfillment

Trackability/Measurability
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Measurability CONFIRM
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Ease-of-Use NetPost Services

• Direct Mail campaigns designed, created, paid
  for, and mailed from your home or office.
• Mailing Online
• Premium Postcards
• Card Store
• Cards, letters, brochures, greeting cards, gift
  cards, newsletters, all from the convenience of
  your own computer.

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What NetPost Means for You

• Increased access (24/7)
• Creative License
• Manage campaigns from your desktop
• Discounted postage rates no volume minimums
• Security of information and data
• Choice of convenient payment options
• Customer support

Simple, Easy Convenient
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The Key Takeaways

• America Likes Direct Mail
• It helps households stay informed
• It helps businesses market products services
• Direct Mail Delivers
• Value, Trust, Security, Privacy
• It gets recipients attention
• Direct Mail Is Growing by Design
• 5 growth for the next 5 years
• Reach will increase in value over time
• DM compliments emerging technologies

Dont forget, it all starts with a clean address!
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The Key Takeaways

• Products
• Customized MarketMail Creativity
• Repositionable Notes Impact
• Ride-Along Targetability
• Confirm Measurability
• NetPost Services Ease-of-Use

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Direct Mail
Makes the Connection