Direct mail and Direct Marketing Programs of Thailand Post

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Direct mail and Direct Marketing Programs of
Thailand Post

• Suchada Buddharuksa
• Vice President of Marketing
• Thailand Post

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Contents

• Direct marketing perspective
• Direct marketing program of Thailand Post
• Direct mail practices in Thailand

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Direct Marketing Definition (1)

• The use of consumer-direct channels to reach
  and deliver goods services to customers without
  using marketing middlemen.

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Direct Marketing Definition (2)

• An interactive system of marketing which uses
  one or more advertising media to effect a
  measurable response at any location.

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Channels

• Face-to-face saleforce
• Direct mail
• Letter box drops
• Telemarketing
• Interactive TV

• Web sites
• Internet/e-mail
• Mobile devices
• SMS
• Catalogs
• Fax

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Direct Marketing Benefits

• Measurable
• Targeted
• Personal
• Relevant
• Testable
• Cost-effectiveness

• Builds relationships
• Invisible
• Interactive
• Compliments mainstream activities
• Builds the brand

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Direct Marketing Value Chain
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How does it work in Thailand?

• Customer Acquisition
• Customer Up-sell/Cross-sell
• Customer Retention
• Customer Relationship Management

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Customer Acquisition

• Where does the data come from for
  mail/telemarketing?
• What are traditional mail order businesses in
  Thailand?
• Syndicated lifestyle surveys
• Direct Response Advertising

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Customer Up-sell/Cross-sell

• It is 5-15 times less expensive to sell to an
  existing customer than to acquire a new one.
• It is a means to start building a relationship
  with a customer.
• Example If they apply a credit card, they can
  spend more.
• If they buy a car, they need
• insurance.

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Customer Retention

• There are so many rewards, loyalty and retention
  programs in Thailand.
• Many loyalty programs are used as an
  acquisition tool like member-get-member
  program.

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Customer Relationship Management

• CRM is a customer-focused business strategy that
  uses enabling technologies to increase customer
  knowledge and build profitable two way
  relationships.
• Life-time value of a customer is more and more
  focused and
• relationship is highlighted.

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Does Direct Marketing work in Thailand?

• It does for a number of companies.
• Especially after economic crisis in 1997
• Marketing spending through advertising is
  revisited.
• Companies make their data available to
  non-competitive brands

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HOWEVER

• Different people are inclined to respond to
  different stimuli.
• Direct mktg alone cannot work well without
  integrated marketing communications (IMC).
• Together they can do their work of reaching the
  prospect, making the
• sale, and developing the
• relationship.

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• Direct Marketing Programs of Thailand Post

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Growth of direct marketing in THP

• Thai Direct Marketer Association (TDMA)-a
  dedicated assoc. that actively promotes Direct
  marketing in Thailand
• Key members include mailing house, list renter,
  advertising agency, mail order companies
• Thailand Post was one of the
• key founders of TDMA

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TDMA Objectives

• To encourage direct marketing implementation and
  support the honest and ethical practices in the
  industry
• To promote cost-effectiveness of business and
  society benefits
• To foster close relationships among members and
  with public organizations
• To be an information center on
• Direct marketing concepts and
• issues

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TDMA Activities

• DM Thailand 2002 Reaching out to Your Customers
• DM Thailand 2003 Customer Intimacy for Greater
  Profits
• DM Thailand 2004 Achieving Profitability in an
  Age of Uncertainty
• DM Thailand 2005 (8-9 June) How to Make and Keep
  Your Customers Delighted
• DM Thailand 2006 (1-2 August)
• DM-Future of Marketing

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THP roles in Direct Marketing

• As co-founder of TDMA, THP has actively
  participated in their conferences as endorsing
  organization, free mail distribution support,
  Guest of honor and speakers, advertising web site
  link
• To grow postal business, THP produces direct mail
  sale kits to
• educate prospects on DIRECT
• MAIL.

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THP Key Messages

• Every household are reached by our postmen.16.5
  million households and 8,200 postmen
• Delivery to targeted areas/communities at
  flexible postage.Unaddressed Mail
• Response device inland overseas
• Business Reply Service

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THP Key Messages

• Taking Orders-Pick-Pack-Collect Money and Confirm
  Delivery with Reliability.Total Solution Service
  with Track Trace Facility
• Thailand Post, an enabler of the direct
  communication to your valued customers anywhere
  they live.

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Direct Marketing Practices in THP

• THP itself also implements direct marketing
  concept.
• Key account management is applied using 80-20
  rule.
• Direct mails are sent for cross-selling of
  stamps, EMS

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Direct Marketing Practices in THP

• Customer card is recorded for EMS
• major customers
• Training of staff on direct marketing benefits

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Direct mail practices in Thailand
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Direct mail practices in Thailand Major Users

• Charities
• Financial institutions
• Airlines/Hotels/Leisure
• Automotive
• Housing project
• Mail order companies
• Shopping Malls

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Direct mail practices in Thailand Unicef Example

• Direct mail- one of the main cost effective
  fundraising activities.
• Recruit new donors
• Increase public participation
• Donor cultivation
• Loyalty programs

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UNICEF Direct Marketing Strategy

• Market research in 1995-1996
• Findings helped steer the course of action
• Steps in direct mail strategy
• - prospect donor to UNICEF donor
• - one-time donor to a regular donor
• - Regular donor to pledge donor

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UNICEF Direct Mail Results

• 83 of income generated from direct mail campaign
• From direct mail income source 86 are
  individuals, 14 are corporate
• 57 becomes regular donors

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UNICEF Successful House Mail

• On an envelope there is a small thing inside
  this envelope!!!!
• A seed packet included in the brochure.
• Wording These seeds symbolize the lives of
  childrenIf we want the seeds to grow up to be
  beautiful plants/vegetables, we must provide them
  with a good soiladequate fertilizerrigt amount
  of water and a good environment. In the same way,
  children need adequate care and a healthy
  environment to develop and become a quality
  adult.

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Direct mail practices in Thailand

• Growth rate of letters are constant despite
  internet creeping-in.
• Direct Mail plays a key role in the mail order
  business. It is still the main source of
  information for mail order customers.
• Direct mail still maintains its positive image
• Postage cost is equal to ordinary
• mail.

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Opportunities for THP

• Mailing list is still inadequate, new prospects
  are still in search.
• Quality of list needs address hygiene.
• Address support is currently in focus by Posts.
• Delivery is heavily dependent on Posts

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Opportunities for THP

• Life cycle of direct mail market in Thailand is
  still at a take-off stage.
• TrackTrace facility enables an evaluation of
  direct mail offer.
• The growing penetration of e-commerce needs
  careful delivery of
• the orders received

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Opportunities for THP

• Printing and advertising industry is of high
  quality with reasonable costs.
• The industry is well equipped with direct
  marketing concept.
• Catalogs, direct mail, telemarketing have been
  growing rapidly.
• to major cities out of Bangkok.

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Opportunities for THP

• Expansion of economic growth to major cities
  outside Bkk.
• Personalised mails are popular for maintaining
  customer relationships.
• Customer lifestyle surveys are done regularly.
• Close relationship with TDMA to
• foster the development of
• direct mail market.

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Opportunities for THP

• Direct mail value chain vs postal business

Letters Unaddressed Mail Address cleaning
Address locating
Warehouse Packing Parcels EMS Track _at_Trace
BRS Financial Service P.O.Box
The End
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QA
Thank you for your kind attention.