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SURVEY: DIRECT MARKETING
Direct marketing drives actions that can be attributed to a specific call-to-action.
In this Survey, leading practitioners advise on making the most of DM Direct marketers use a variety of Direct Marketing Association, believes mail has several key attractions for mar- media to get their message across.
that marketing is changing rapidly as Wherever the message is displayed, marketers become more focused on the I Selectivity - isolate target audiences the aim is the same - to get the bottom line. Stynes added: "The intro- I Measurability - establish success of consumer to take a specific action such duction of post codes will see a signifi- as calling a number, visiting a website, cant rise in direct marketing activity in I Personal - message can be personalised placing an order etc. According to Gary Ireland and enable marketers to be even I Hard to ignore - lands in your hallway Finnerty, marketing communications more effective in their marketing target- I Versatile - Multitude of items can be manager at An Post, direct marketing ing. Digital marketing, including inter- differs from advertising in that a specific net and mobile marketing, have now I Easy to respond to - multiple response action is required and response or lack effectively gone mainstream after a num- of it is measurable by the marketer.
ber of years of strong growth." I Little wastage - refined targeting.
Most direct marketing in Ireland takes The pitch from the direct marketing In Ireland, An Post says that 12% of all the form of direct mail. But these days sector is that DM enables companies to Irish mail contains promotional material that means a lot more than sending a deliver offers and messages that con- as its main content. Of this, 37% comes coupon with a reply paid envelope.
sumers actually want to receive by from home shopping providers, 24% from When DirectBrand was tasked by HP to deploying advanced modelling and seg- firms providing leisure and entertainment generate leads, the agency mailed execu- mentation strategies. The technologies at and 10% from utilities. Finnerty added tive prospects a rugby ball and then marketers' disposal continue to grow in that 28% of all mail received includes pro- directed them to a micro-site to engage number and sophistication - search motional material as secondary content with HP. For a budget of €30,000 the engine marketing, podcasting, blogging, and 33% of this secondary content comes campaign generated €1.5m in new busi- online video, RSS and SMS. However from financial services firms and 25% ness revenue.
printed material that drops through the Stephen Stynes, managing director of letterbox is still by far the most popular But how much of this goes straight in the DirectBrand and chairman of the Irish DM tool. According to Finnerty, direct bin? According to Finnerty, research for An

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Post shows that 85% of recipients of direct certainly contributes to this. The advance- mail in Ireland examine the items and that ment in digital print technologies means one-third of recipients keep addressed pro- that sophisticated personalisation is avail- motional literature as a reference point that able to SMEs where the volumes are not they may or may not act on. in the realms of the larger companies. Snap Irish people find product samples, Printing's HP Indigo Digital presses make "I was watching a different channel." money off coupons and newsletters partic- clever direct mail options a reality for ularly relevant to their needs with rele- smaller businesses with small print runs." vancy ratings all 60% or higher. Overall, Murphy added: "Direct Mail accounts An Post estimates that one in eight people for a sizeable proportion of our own mar- avail of an offer included in a direct mail keting spend and we know it works. We piece, telephone the organisation or visit are able to take that expertise and bring it the website or premises as a result of to our clients. The whole direct mailreceiving the direct mail.
process revolves around who the customer According to Snap Printing, direct mail is and what the client needs to communi- in the business-to-business markets has cate to get closer to a sale. We can take the shown rapid growth in the past few years.
idea and translate this into a hard working Muiris Murphy, group managing director direct mail piece including the envelope, "I don't listen to that station." of Snap Printing, said: "The ability to personalisation and mailing process." bring clever and innovative personalisation continued on page 82 An Post Direct Marketing Awards 2007
Gold Award Winners
BUSINESS TO BUSINESS
Defence of Market Share
Maximising Customer Value New Product/Service Grunenthal Pharma "I only read the Sun." Customer Acquisition BUSINESS TO CONSUMER
Defence of Market Share
Direct Mail. It's Unavoidable.
Maximising Customer Value New Product/Service While other media merely take Customer Acquisition aim at a segment of the marketplace, Direct Mail actually SECTOR AWARDS
Financial Services
reaches every individual to whom it is addressed. Powerful. Cost- effective. Measurable. Direct Mail is simply a great way to get closer to your customers. Strategem Carlsberg Retail/Home Shopping To find out more call
Grunenthal Pharma An Post on 1850 26 23 62
CUSTOMER RELATIONSHIP PROG.
Strategem Carlsberg or visit www.anpost.ie
FIRST TIME USE AWARD
Key Capital Private SUPPLIER OF THE YEAR
AGENCY OF THE YEAR

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Some highlights from the 2007 An Post Direct Marketing Awards VODAFONE STOP THE CLOCK
Agency:
To raise awareness among prepay customers of the new service available to them. To differentiate the offer as being unique to Vodafone.
Strategy and Targeting:
Aimed at consumers who curbed their usage based on their concern of running out of credit. January launch ensured maximum interest as people felt the financial effect of Christmas.
Creative and Media:
Examples were given of when further time was needed to get the full details of a story. This was done in a humorous way in order to grab the attention of the audience. A DM gave the background of the ad which further engaged the audience.
Campaign Effectiveness: A big uptake for the offer resulted in a large number of customers signing up.
WHAT IF YOU'RE WEARING THE BOOTS?
Agency:
To introduce and drive interaction with the Carlsberg brand. To convert brandsamplers to brand adorers.
Strategy and Targeting:
Targeted male pub drinkers 25-34 who were brand loyal to Heineken. Use of ‘free pint' coupons to drive brand acquisition. Incentive given for consistent coupon redemption and online interaction. Soccer theme timed to coincide with European finals.
Creative and Media:
Development of a new look for Carlsberg including development of ‘What if?' identity which incorporated soccer theme. Through DM and the web, a number of questions were posed to the audience. Each question promoted the idea of the individual as part of the soccer experience on a larger scale.
Campaign Effectiveness: Over half of all pint coupons were redeemed and 75% of participants found the creative engaging, relevant and
CONCERN TAXBACK CAMPAIGN To ensure donors to Concern completed a Revenue form which allowed Concern to reclaim the tax paid by their donors.
Strategy and Targeting:
Issuing a creative ‘thank you' to the diverse range of Concern donors with heavy emphasis on the ‘feel good' associated with donating to a charitablecause.
Creative and Media:
Integrated campaign involving publicity, e-mail marketing, radio, outboundtelemarketing and a high volume direct mail piece.
Revenues from campaign were 33% above target, achieved through a veryhigh response rate to the mailing at the kernel of this campaign.
Business Plus June/July 2007

Retention of the O2 customer base.
Strategy and Targeting:
Develop loyalty among existing customerbase by surprising and delighting customersby charging O2 to O2 calls at a reducedone cent for weekends over a three monthperiod. To further leverage the offer,customers were also offered the chance torent movies from Screenclick for a 1 centper movie charge.
Creative and Media:
A simple creative which emphasised theoffer of DVDs for one cent was used acrossTV, outdoor and online. A dedicatedbranded website was developed for theduration of the promotion.
A very large number of O2 customersavailed of the promotion with the O2 brandtracking well immediately after thepromotion.
Gyro International Meet evolving market demand andcounteract competitor messaging. Increaseweekly inbound calls. Strategy and Targeting:
Building on brand position of ‘accountingfor you'. Acknowledging busy work life oftarget audience. Creative and Media:
DM and reminder eDM to existing TAScustomers. Direct response press advertisingto increase awareness and positioning on alarge scale. Ease of response to DM, DailyStar ads and eDM through SMS, an 1800number and link to TAS website. Significant increase in inbound calls withvery high response rates to DM, eDM andDaily Star campaign.
continued on page 84 Business Plus June/July 2007
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What elements make for from hedge cutting to water features.
The point of this example is to a successful direct mail illustrate that no matter how clever their creative or how good their offeror timing, it was poorly targeted andthere was no chance a sixth storey Peter Whelehan, DMCM apartment-dweller would be interested The key ones are the list, offer, creative in any of the services of a landscape and timing. Despite what some people gardening company.
will tell you, the most importantelement isn't the sexy creative but it's Keith Lee, Strategem the list. Targeting the right person for A mailer has three main components - your product or service is crucial. An the target audience selection or mailinglist; the incentive or offer that drives theconsumer to purchase or interact; andthe creativity of the mailing piece used toconvey a relevant clear communicationmessage. The message and copy shouldbe clear and concise, answering thequestions that would be immediately Keith Lee: "The first impression
relevant to the reader to engage and will affect behaviour"
support understanding. The action andexpected response you wish the reader to Gerry Davey, MCDI make should also be highlighted and We have seen a big increase in the repeated throughout the mail piece, numbers of blue chip clients, from a explaining what they are required to do range of market sectors, using and how long they have to respond. unaddressed, direct mailings as a Another factor that needs vehicle for attracting new business consideration is the outer envelope.
enquiries. Clients who are prepared to The correct approach from the first invest in creativity and printing to make Peter Whelehan: "The most
impression will affect behaviour and can their leaflet appealing to the target important element is the list, not
be the difference between a mail pieces market are the ones who repeat the the sexy creative"
being opened or binned. Tracking exercise over a period of time. It example I often give is something that measures should also be in place to obviously delivers the desired response.
happened to me a number of years ago determine if a campaign has been when I lived on the sixth floor studio of successful. Promotional codes and Olive Fogarty, OgilvyOne a city centre apartment block. I got up coupons as response measurement tools Solid strategy, consumer insights and one morning to find a door drop are imperative to enable judgement on great creative. Be relevant, timely and sticking out of my letterbox. It was a success. Without these measurements it engaging and make the offer relevant to communication from a landscape is impossible to quantify return on the target audience.
gardening company who did everything continued on page 86 Business Plus June/July 2007
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Show an immediate and direct benefit All campaigns start with or saving to the target market. To a good brief, a client anybody who says that mailings directly open to good ideas and to homes in Ireland don't work, I would interesting thinking say that they should allow me to from an agency. Good distribute 20,000 leaflets offering 50% thinking comes from off the price of their product or service. talented people and it's important to be sure response rates.
that that agency has a I Talk to the customer at the right good spread of the right time, with the right message, in the talent that gives you right tone of voice confidence in their I What is the strategic intent with the ability to deliver. You Olive Fogarty: "Make the offer
need hands-on daily relevant to the target audience" order for a
account management, strong strategic input, bright creative thinking and execution relevance, you need to understand your and, of course, you need the agency to target audience. You need to maximise deliver on time, on budget, with results.
levels of personalisation and creativeimpact as well as setting incentives at Frank McCaughey, Acorn Marketing the correct levels. I The right cost structure. Get theright print costs, right fulfilment prices,right design charges etc. The more What is the best way to expensive the piece is, the harder it has ensure a good response to work and harder it is to justify ROI.
I Great understanding of the to direct marketing? competitive landscape in which thepiece is being targeted and a compellingproposition to reflect that.
I Simple, clear, attention grabbing copy.
Target prospects that you know will I The creative needs to complement have a high predisposition to purchase Kyla O'Kelly: "Many businesses
the proposition, not be the driving your product or service. This can be are more responsive around
ascertained by research and strategies September"
Targeting the right person at the such as profiling. Business Plus June/July 2007
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campaign? Is it a big idea? Is it clear? Is freeTXT, freepost, e-mail, etc. Getting the message compelling? a good response in the online I Creative. A big idea, made glorious advertising arena allows for easier with visual impact and copy that tracking than offline. For example, if connects. And beautifully produced, of your banner ads aren't achieving a click course - the wow factor.
through rate of 0.3% over four weeks,you need to then change the creative. Frank McCaugheyHave a forensic understanding of themarket place in which you are What time of year is best operating. Understand who your for direct marketing? competitors are, what they are offering,how are they marketing, who is buying,who is your target market, why won'tthey buy from you etc. You then can build up a picture of what is unique It really depends on the proposition and about your own proposition and why product on offer. However January to Frank McCaughey: "Have a forensic
customers should buy it. April is a good time for most industries, understanding of the market place
likewise back to school September in which you are operating"
though to November.
on some response rates. However as lifstyles change and people take shorter clear creative and strong It depends on the breaks more often, this seasonal impact incentives all combine to product or service has lessened. From a business to drive up response rates. but there are a couple consumer perspective, timing obviously of low-response times also depends on the product or service - such as just before gyms, health products etc get a great The short answer would Christmas, when the boost in January. From a business-to- be ‘Big Relevant business perspective, many businesses Creative Impact - Big many other things to have a renewed sense of vigour and are Simple Relevant Reward think about.
more responsive around September and or Carrot'. The call to October and the start of the new year.
action or format of response must be easy.
Give the recipients A bad time for one business to Peter Cahill: "You need
tended to steer away communicate can be the best time for freephone, driving your to maximise levels of
from summer months another business. prospects to a microsite, as holidays impacted continued on page 88 Business Plus June/July 2007
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Direct mail is personalised and targeted so there's no better way to talk directly to your current or prospective customers. However everything starts with The List What is Direct Mail? Direct mail is one more to recruit a new customer than to
lope through the letterbox. If you are in- element of Direct Marketing and is the keep one you already have, so sorting out tending on a more dynamic pack that in- ability to target individuals through their your own customer list is a top priority. cludes an elaborate offer (your own, or letterbox, addressing them by name and one from a third party) it is easy for a offering them your product or service, Is there any mailing format that consistently
project to run for several weeks. Con- which is relevant to them. performs better than the others? Any for-
sider this complicated scenario: mat will work if it's personalised, executed I the offer has to be identified and What is a good response rate? If 5% of your
successfully and appeals to your audience.
audience responds to your mailing then Bear in mind what it is that you're trying to I the letter has to be written that is considered good. As a general rule sell and to whom you're selling it. Then go I the brochure/leaflet has to be designed from there. If you're selling a piece of I the database has to be interrogated to I 1% to 2% response from cold equipment worth €50,000 it is unlikely produce the right names/the right list hasprospects is average that a DL envelope and a letter are going to be purchased and broken down into I 2% to 4% response from existing to entice your audience.
the mailing file. customers is considered average.
I the copy on the letter and These figures will usually be boosted if the What questions should I ask when I'm review-
brochure/leaflet has to be approved by direct mailing is run as part of an inte- ing a piece of Direct Mail copy? A helpful
several executives grated campaign i.e. one that contains anagram is AIDA. Your direct mail piece I the artwork has to be approved and other marketing media (TV ads, radio, should generate awareness, interest, desire in-store promotions, telemarketing etc).
and action from your audience, so try to I the different pack elements have to be The success of a campaign will depend put yourself in their shoes when reviewing fulfilled (i.e. put together) on your objectives and on the value of the the piece. Even better, ask someone who I the pack is then mailed.
business that you generate from it. fits the audience's profile to look at it.
Make sure that it sells the key benefits of How much does Direct Mail cost?
How important is the list? The mailing list is
your product/service in an easy to under- This will depend on the size and complex- the most important part of any direct mail stand manner. Make sure the offer is clear ity of the campaign. For example, if one campaign. No matter how cleverly and succinct. And finally, make sure it is sale is worth €20,000 and you're mailing worded, no matter how beautifully pro- easy for your audience to respond.
3,000 prospects, then a response of 2% duced, no matter how strong the offer, if will generate €1,200,000 in revenue (60 you are not talking to the right audience How long does it take to produce a Direct Mail
sales X €20,000). So while spending €50 it's a waste of time to use direct mail. Con- campaign? From a few days to a few
on each mail piece sounds high, the total versely, if your list is absolutely spot-on, months depending on the size and com- cost of €150,000 (€50 X 3000) is easily you are well on your way. Essentially there plexity of the pack. If you are sending a justified by the revenue generated. How- are two sources of lists - your own list (or simple letter to your customers, then it is ever, note that there is no rule of thumb database) and lists you buy from outside only a few days between writing the let- that says the more you spend, the better suppliers. It costs on average six times ter and the postman pushing the enve- your response will be, or vice-versa. Business Plus June/July 2007
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Reduce Postal Costs With Postaim The cost of mailing a standard unsolicited by the addressee and Postaim Tariffs
letter within Ireland is 55c the minimum quantity is 2,000.
so anybody considering a There are also pre-sorting direct mail campaign should be requirements (see the An Post familiar with the Postaim tariffs.
website for details).
2k-75k 75k-250k
These are discounted prices for Postaim postal tariffs are built volume mailings of items which around three sizes: 0-50g Letter/card match An Post's size requirements I Letter/postcard, no larger than and are pre-sorted to their C5 in size i.e. half the size of an 51-100g Letter/card Postaim Light is the tariff for I Large Envelope, items up to C4 items which weight under 10 in size i.e. the size of an envelope grams, such as flyers, while the containing flat A4 sheets. 101-250g Large Envelope 99c Postaim is the tariff for mailing I Packet, caters for three dimen- items which weigh over 10 grams.
sional items like boxes, tubes and To qualify as a Postaim direct envelopes which exceed the limits 251-500g Large Envelope €1.27 mailing, the items must be of a Large Envelope. Checklist For Success Lorcan Lynch, marketing basis against the National
services director with Database Directory Experian, says there are operated by the Data several boxes to tick when buying or renting a mailing list.
Lynch added: "There are Firstly, the quality of the list - three key points in direct Ireland's Leading Data Supplier Will how fresh is it, how old, when mailing. Firstly, customer Help You Acquire More Customers, was it last updated? Lynch acquisition and getting new said: "Does the list deliver you customers. Secondly, Retain Them and Minimise Churn key target prospects that fit in customer retention, so with what you want to putting in place a customer Our product portfolio delivers profitable results communicate? Don't buy a loyalty relationship test us for FREE and we will prove it. list just because it is cheap if programme is important.
G National Canvasse - Over 3m prospect records it doesn't stack up to your Third, reducing any churn.
target market.
"With consumer lists, it is all with age, affluence and life stage selections "We estimate that on all about understanding the G Mosaic - enrich your data with one of average with any direct life stage of a customer. Are 40 Irish Life stage segments marketing campaign, 10% of they single, in their 30s with G experianintact.ie - clean and manage your data online the mailings are wasted on a young family, or approach- G prospectlocator.ie - create and purchase data online people who have changed ing retirement or retired? G cheetahmail.com - email deployment with a difference addresses, or are deceased, This will dictate the kinds of G QAS - Rapid datacapture to national address standards or have chosen to opt out of things they will want to buy, direct mailing. A list must their affluence and finances, For more information or a FREE Test Call us on
also be compliant with the and the budget they have to 01 846 9200 or email [email protected]
Data Protection Act. Under spend. Once you know this the act, data must be kept up then you can send the right Experian Marketing Services Limited
to date as possible. A list communication at the right must be run on a regular time to the right person." Newenham House Northern Cross Malahide Road Dublin 17 Business Plus June/July 2007
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Where To Find Great the 2007 An Post Direct Marketing customer profiling, targeted Toyota Ireland, An Post, AIB, O2, Awards for its Panda campaign. marketing, identifying cross-selling Anglo Irish Bank, Accenture, Bacardi, opportunities, retail planning and list Texaco and Concern. Says director Listing information is provided Direct Marketing Campaign
rental. It is part of a global leader Kyla O'Kelly: "We had a lot of by the featured companies and with operations in over 30 countries.
fantastic challenges over the past 12 sourced from their websites. Lorcan Lynch, Marketing Services months, resulting in great client The listing is not comprehensive.
(01) 602 4766
Director at Experian, says that the briefs. A 53% response for an DMCM was set up in 2003 by Peter quality of a mailing list and its ability integrated campaign for Concern, Whelehan. Whelehan offers a low- to target the right audience can both won the agency a Gold at the An overhead model and will bring in the save money and provide for a more Post DMA awards. We also launched necessary marketing professionals as effective campaign. "It is all about Independent Radio Sales (IRS) in the needed. Clients deal with one senior understanding the life stage of a north, through DM." (01) 479 2063
marketing contact so DMCM can customer. Once you know this then Acorn is a direct marketing response provide clients with a more direct you can send the right specialist with a new style of service at highly competitive rates communication at the right time to marketing that moves away from the compared to traditional agencies.
the right person," he says. (01) 492 7614
conventional marketing approach to Clients include AIB, AA Ireland, MCDI is an independent measurable marketing, return on Fujitsu Siemens Computers, General unaddressed mail distribution investment and direct sales as a Motors and Opel. Says Whelehan: agency, matching client requirements result of any marketing activity.
"The business has just experienced (01) 858 7900
for leaflet, brochure, sample, and Founder Frank McCaughey has held its most profitable year based on Javelin Direct is part of Javelin Young other distributions with professional a number of positions in the industry plenty of new business as well as & Rubicam. The group offers contracting companies that will including UK & Ireland Direct existing clients. This didnít happen by integrated local capabilities and the deliver as agreed within given time Marketing Manager and European accident, it's due to the delivery of resources of the world's largest parameters. Says managing director Head of Marketing Planning for Dell.
highly targeted creative campaigns Gerry Davey: "We provide a flexible, "Success is measured by marketing that get results." Javelin says its strong points are accountable service, representing our cost per sales lead and cost per sale.
formative and analytic advice on clients' interests at every stage of a We stake our reputation on this core Experian Marketing Services
data and consumer targeting distribution. We have further objective." Clients include Perlico, demographics, development of best- developed a professional approach Hibernian, Mortgages Direct, (01) 846 9200
in-class customer acquisition and to unaddressed mailings in terms of Independent Directory, and Panda Experian provides valuable retention strategies, cracking creative control and accountability which Waste. Acorn won a Silver Award at enrichment data and can help with ideas and execution. Clients include allows us to manage distributions MEDIA COMMUNICATIONS DIRECT (IRELAND) LTD.
Representing Our Clients Professionally In Unaddressed Mailings. Leaflets, Brochures, Samples - Take The Direct Approach With MCDI: Planning; Scheduling; Managing; Researching; Reporting.
Telephone: (003531)492 7614 Email: [email protected]
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more efficiently, ensure timely is that in order to unlock full brand the An Post awards 2007 Tequila completion in the agreed areas and potential, "you must first won three golds and a silver and report to clients with a weekly understand consumer behaviour" in bronze award each, while the update of levels of completion." such a way that you can alter it.
agency also picked up two golds Clients include Vodafone Ireland, Says managing director Keith Lee: and three silvers at the recent APMC Halifax, Atlantic Home care and Alfa "Without doubt the single most 2007 awards. Clients include O2 Irish International Proximity
significant change for Strategem is Ireland, Intralux, and Paddy Power. our full agency creative offering across advertising, digital and RM.
141/Red Cell
Kell Marketing Design
We have gathered and nurtured a (01) 669 0020
key winning team of marketing OgilvyOne is the full service below- specialists. Every project is a joint the-line agency within Ogilvy Ireland venture and we commit ourselves Group. The firm has expertise in intellectually and emotionally to Banks Love Marketing
direct mail, sales promotion, brand genuine partnerships with our activation, digital, direct response clients." In the recent 2007 An Post TV, radio and press. The agency uses Direct Marketing Awards Strategem a number of proprietary tools to won three gold awards and a uncover the insights, develop bronze for its Carlsberg "What If" strategy and build brands for its campaign series. Clients include clients. Clients include Vodafone, Batchelors, Diageo, Kerry Foods, Lucozade, and Eircom. At the 2007 United Beverages, Gaiety Theatre, An Post awards, Ogilvy picked up Glaxo SmithKline, Jurys Doyle, First one gold and three silver awards.
Active, Vodafone, Eircom and Pulse Group
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and marketing solutions. "The past 12 months have been pretty (01) 668 0755
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Strategem is a full service through- strong performance in new business the-line response marketing agency wins, including two pitches with utilising both online and off-line Breeo for Calvita and Shaws," says platforms. The company's main tenet managing director Peter Cahill. At Business Plus June/July 2007

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