Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world
The United States Postal Service -- USPS delivered over 210 billion pieces of mail in 2005, an increase of over 5.5 billion pieces from 2004. The total annual revenue was about $70 billion, with an increase of about $1 billion from 2004. Standard Mail fueled by the growth in Direct Mail and Direct Marketing exceeded 100 billion pieces for the first time, with an annual increase of over 5.4 billion new shipments from 2004.
The Standard Mail volume even exceeded the First-Class Mail volume for the first time in the history of USPS.
Market Trends buoying Direct Marketing
What are the key trends resulting in this disruptive growth of Direct Mail and Direct Marketing for USPS?
1. A strong retail market with higher annual sales and profits creates a favorable investment environment for advertising spending.
2. Increasing strength of direct marketing channels serving more businesses and the strong market demand.
3. Huge growth in credit card and home loan / mortgage marketing fueled by the growth in credit card and financial services market.
4. Seasonal increases owing to election year marketing.
5. The national "Do Not Call" telephone restrictions providing consumers the rights to deny telemarketers calling them, and its positive effect on Direct Marketing.
6. Passing of e-mail marketing legislation in most states that expressly prohibits marketers to send out email blasts to consumer lists without express permissions from the consumers, and its positive effect on Direct Marketing.
7. A physical and tangible quality inherently lacking in e-mails or online media, and its positive effect on Direct Marketing.
Have you checked your mail and your mailbox recently? Among the many direct marketing mailings you receive are unaddressed grocery circulars, sales flyers from local brand-name stores, Penny Saver booklets, ADVO coupons, "Dear Neighbor" coupon packages, pre-approved credit-card offers, home mortgage financing and re-financing offers, car dealership offers on new models and attractive financing, and more.
USPS Innovations
USPS proposes the following recommendations on initiating a Direct Mail and Direct Marketing program. Each recommendation provides a business process on how a business can build an effective program around Direct Mail:
1. Build or buy a mailing list
2. Select postcards, letters, or brochures
3. Explore design ideas
4. Create your message
5. Get tips for printing your mail piece
6. View Direct Mail payment options
USPS ® has created the following innovative services that fuel this growth in Direct Marketing:
1. Direct Marketing and Direct Mail can be targeted to specific audiences down to a zip code, address, and socio-economic profile by building a list or using the available list brokers. USPS provides NetPost service that “makes it easy for you (business) to create Direct Mail pieces, right from your home or office computer,” and customized MarketMail services that “allows you to test your creativity and send a truly dimensional mail piece of any shape or design.” Some mailing lists can be rented from a local newspaper, chamber of commerce, trade publications or specific brokers. This means a company of any size can create marketing programs of any size and scope with razor-sharp focus.
2. Direct Marketing effectiveness can be measured with the tools available from USPS for both NetPost and MarketMail services, and also tracking tools for mail services. This means that a company can finally tie down deals to the leads generated by specific Direct Marketing campaigns.
3. USPS provides a suite of online resources to businesses that are at various stages of their Direct Mail and Direct Marketing. For instance, you can not only learn the benefits of Direct Mail, and leverage the available research and white papers, but also execute marketing programs using the Tools & Resources and the USPS services.
Fusion of Direct Marketing, e-mail and the Internet
According to a whitepaper on Mail and the Internet by the USPS, "consumers, even heavy Internet users, continue to view mail as a highly relevant and significant part of their lives." The same whitepaper shows that when mail is working side by side with digital media, it can have a substantial impact on the use of commercial Web sites.
Here are some key findings on the integration of Direct Mail and Marketing into Online marketing:
* 30% more dollars are spent by multimedia shoppers (mail and email, mail and website, etc.) than single-media shoppers.
* 37% of e-commerce dollars come from catalog recipients.
* 41% of Americans shop using both catalogs and the Internet.
There are significant insights to be gained from an integrated Direct Marketing program that combines Direct Mail with E-mail and Website.
1. E-mail is a complement to mail, and when smart companies combine them together and create a cohesive marketing strategy, they "achieve high-impact results...even shake things up."
2. "Mail motivates customers to visit your stated website more often, stay longer, and spend more money while shopping." A cleverly designed mail creates the hook. Website serves to fulfill the need.
3. "Consumers rely on e-mail as a useful tool to manage their personal lives." A report released by DoubleClick.com in March 2005 found that 59% of respondents feel that “knowing and trusting the sender” is a factor in opening and reading an e-mail. Compared to the mail, consumers take less time to read Internet offers and retail messages through e-mail. Mail not only opens up a customer to a company's brand and goods, it can create an ongoing relationship with the customers.
USPS Case Studies
USPS touts case studies of Internet companies such as eBay and small businesses who used Direct Mail and Direct Marketing innovation to achieve disruptive sales results:
* "eBay created its first-ever catalog to entice readers to its online retail site. The holiday catalog was distributed to several million eBay members in November 2004, and eBay saw a dramatic climb in sales. “The catalog is the latest tactic we’re using in an integrated campaign,” said Michael Dearing, eBay general merchandising manager. “We used the print medium during the holidays to keep eBay top of mind and drive readers to our Web site.”"
* Another company, "21 CD, Inc. produced a mini CD for a North Carolina coastal resort area. Compared to prior mailings, the results were a 300% increase in reservation inquiries over the next three months. The multimedia mailer also had a 16% response rate."
* Country Supply, Inc. is a family business whose sales had grown to just under $200,000 annually. Limited to potential customers in the small town of Ottumwa, Iowa, the husband and wife pair decided to expand their business through catalog sales. They designed and printed a catalog featuring their products. In essence, they then "partnered" with the USPS ®. They economically delivered their catalog via Direct Mail. Their sales doubled within 2 years and increased by over 500% within 5 years. Country Supply now serves over 400,000 customers nationwide, with annual sales exceeding $17 million. Direct Mail made this disruptive growth a reality for Country Supply.
Bottomline
USPS enjoys a virtual monopoly in Direct Mail and Direct Marketing owing to its millions of delivery points, great quality of service (over 90% customer satisfaction) and program innovations. USPS embraced and capitalized on the e-mail and the Internet demand, which many analysts initially thought would be the beginning of an end for Direct Mail and Direct Marketing. However, USPS is uniquely positioned today to not only grow its own Direct Mail business, but also enable disruptive growth for customers who leverage its Direct Mail service for Direct Marketing. A Win-Win recipe for growth!
The Standard Mail volume even exceeded the First-Class Mail volume for the first time in the history of USPS.
Market Trends buoying Direct Marketing
What are the key trends resulting in this disruptive growth of Direct Mail and Direct Marketing for USPS?
1. A strong retail market with higher annual sales and profits creates a favorable investment environment for advertising spending.
2. Increasing strength of direct marketing channels serving more businesses and the strong market demand.
3. Huge growth in credit card and home loan / mortgage marketing fueled by the growth in credit card and financial services market.
4. Seasonal increases owing to election year marketing.
5. The national "Do Not Call" telephone restrictions providing consumers the rights to deny telemarketers calling them, and its positive effect on Direct Marketing.
6. Passing of e-mail marketing legislation in most states that expressly prohibits marketers to send out email blasts to consumer lists without express permissions from the consumers, and its positive effect on Direct Marketing.
7. A physical and tangible quality inherently lacking in e-mails or online media, and its positive effect on Direct Marketing.
Have you checked your mail and your mailbox recently? Among the many direct marketing mailings you receive are unaddressed grocery circulars, sales flyers from local brand-name stores, Penny Saver booklets, ADVO coupons, "Dear Neighbor" coupon packages, pre-approved credit-card offers, home mortgage financing and re-financing offers, car dealership offers on new models and attractive financing, and more.
USPS Innovations
USPS proposes the following recommendations on initiating a Direct Mail and Direct Marketing program. Each recommendation provides a business process on how a business can build an effective program around Direct Mail:
1. Build or buy a mailing list
2. Select postcards, letters, or brochures
3. Explore design ideas
4. Create your message
5. Get tips for printing your mail piece
6. View Direct Mail payment options
USPS ® has created the following innovative services that fuel this growth in Direct Marketing:
1. Direct Marketing and Direct Mail can be targeted to specific audiences down to a zip code, address, and socio-economic profile by building a list or using the available list brokers. USPS provides NetPost service that “makes it easy for you (business) to create Direct Mail pieces, right from your home or office computer,” and customized MarketMail services that “allows you to test your creativity and send a truly dimensional mail piece of any shape or design.” Some mailing lists can be rented from a local newspaper, chamber of commerce, trade publications or specific brokers. This means a company of any size can create marketing programs of any size and scope with razor-sharp focus.
2. Direct Marketing effectiveness can be measured with the tools available from USPS for both NetPost and MarketMail services, and also tracking tools for mail services. This means that a company can finally tie down deals to the leads generated by specific Direct Marketing campaigns.
3. USPS provides a suite of online resources to businesses that are at various stages of their Direct Mail and Direct Marketing. For instance, you can not only learn the benefits of Direct Mail, and leverage the available research and white papers, but also execute marketing programs using the Tools & Resources and the USPS services.
Fusion of Direct Marketing, e-mail and the Internet
According to a whitepaper on Mail and the Internet by the USPS, "consumers, even heavy Internet users, continue to view mail as a highly relevant and significant part of their lives." The same whitepaper shows that when mail is working side by side with digital media, it can have a substantial impact on the use of commercial Web sites.
Here are some key findings on the integration of Direct Mail and Marketing into Online marketing:
* 30% more dollars are spent by multimedia shoppers (mail and email, mail and website, etc.) than single-media shoppers.
* 37% of e-commerce dollars come from catalog recipients.
* 41% of Americans shop using both catalogs and the Internet.
There are significant insights to be gained from an integrated Direct Marketing program that combines Direct Mail with E-mail and Website.
1. E-mail is a complement to mail, and when smart companies combine them together and create a cohesive marketing strategy, they "achieve high-impact results...even shake things up."
2. "Mail motivates customers to visit your stated website more often, stay longer, and spend more money while shopping." A cleverly designed mail creates the hook. Website serves to fulfill the need.
3. "Consumers rely on e-mail as a useful tool to manage their personal lives." A report released by DoubleClick.com in March 2005 found that 59% of respondents feel that “knowing and trusting the sender” is a factor in opening and reading an e-mail. Compared to the mail, consumers take less time to read Internet offers and retail messages through e-mail. Mail not only opens up a customer to a company's brand and goods, it can create an ongoing relationship with the customers.
USPS Case Studies
USPS touts case studies of Internet companies such as eBay and small businesses who used Direct Mail and Direct Marketing innovation to achieve disruptive sales results:
* "eBay created its first-ever catalog to entice readers to its online retail site. The holiday catalog was distributed to several million eBay members in November 2004, and eBay saw a dramatic climb in sales. “The catalog is the latest tactic we’re using in an integrated campaign,” said Michael Dearing, eBay general merchandising manager. “We used the print medium during the holidays to keep eBay top of mind and drive readers to our Web site.”"
* Another company, "21 CD, Inc. produced a mini CD for a North Carolina coastal resort area. Compared to prior mailings, the results were a 300% increase in reservation inquiries over the next three months. The multimedia mailer also had a 16% response rate."
* Country Supply, Inc. is a family business whose sales had grown to just under $200,000 annually. Limited to potential customers in the small town of Ottumwa, Iowa, the husband and wife pair decided to expand their business through catalog sales. They designed and printed a catalog featuring their products. In essence, they then "partnered" with the USPS ®. They economically delivered their catalog via Direct Mail. Their sales doubled within 2 years and increased by over 500% within 5 years. Country Supply now serves over 400,000 customers nationwide, with annual sales exceeding $17 million. Direct Mail made this disruptive growth a reality for Country Supply.
Bottomline
USPS enjoys a virtual monopoly in Direct Mail and Direct Marketing owing to its millions of delivery points, great quality of service (over 90% customer satisfaction) and program innovations. USPS embraced and capitalized on the e-mail and the Internet demand, which many analysts initially thought would be the beginning of an end for Direct Mail and Direct Marketing. However, USPS is uniquely positioned today to not only grow its own Direct Mail business, but also enable disruptive growth for customers who leverage its Direct Mail service for Direct Marketing. A Win-Win recipe for growth!
Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world
References:
USPS: http://www.usps.com/
USPS Annual Report: http://www.usps.com/history/anrpt05/contents.htm
Direct Marketing Association: http://www.the-dma.org/
USPS Direct Mail Info:
http://www.usps.com/directmail/welcome.htm
Mail and the Internet – Whitepaper: http://www.usps.com/directmail/_pdf/MailandtheinternetWhPaper.pdf
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