direct mail future bright
DESCRIPTION
Uno sguardo al futuro del DM da Weening & PartnersTRANSCRIPT
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Berne, 22 January 2008
Direct Mail: The Future is still bright?UPU Direct Mail Advisory Board
Aad WeeningWeening & Partners
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A G E N D A
Distance SellingOn Line IssuesTrends in MailChallenges and Opportunities
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Quote
Mark Twain
LiesDamn LiesStatistics!!
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66 73160 193
44 51
79 106
20 24 2717
1995 2000 2005 2006
USA Europe Japan
127 144 263 326
TOTAL
In billion euro
SALES compared: USA – Japan - Europe
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Per Capita Distance Selling
641
200155
261
13
715
320
12 7
USA
Japan
Europe
Wes
t Euro
pe
East E
urope
UKGer
manyIt
alyRuss
ia
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ON-Line %
60.5 58.6
78.9 76.4
66
USA Europe UK NL France
2006
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PENETRATION......
differs from country to country, due to
consumer mentalityretail networkperformance Postmaturity internetlegislation
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Leaders B2C 2001 - 2006
13.2
9.3
3.3
8.57.8
5.5
0.8
4.8 4.8 4.4 4.5
2.93.8
2.2
OttoAmaz
on
Qu/Nm
eBay
Redca
ts
LWShD
JCPen
ney
20012006
In billion In billion €€
Quelle: €4.2 Neckermann: €1.3
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Mail OrderMail Order
Distance SellingDistance Selling
Multi Channel RetailMulti Channel Retail
T R E N D
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Multi-Channel experience
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Multi - channel approach
Internet: a marketing and ordering channelInternet: a marketing and ordering channel
Customers
Marketing channelsOrdering channels
Internet Live inbound
E-mailInteractive
voice response
Paper order form E-mail
Mass / Direct
marketing
Internet Catalogues
Live outbound
Company
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More Choice
Convenience
Improved Service
Enhanced brand
experience
Improved relationReduced costsImproved loyaltyIncreased spend/penetration
Increased
sales/profit
Customer Retailer
Benefits of Adopting a MultiBenefits of Adopting a Multi--Channel Channel StrategyStrategy
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Trends in Distance Selling
Internet is becoming thedominating channelThe traditional « bigbook » has come to itsend (?)Instead magazine-likeguides to come closer to the (internet) customerFocus on consumer confidence
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Confirmed Trend: Integration
The outdoor apparel and gearmaker mails more than 200 million catalogs per year. L.L. Bean's library includes about 10 specialty catalogs offering products in categories such as children's, fly-fishing, outerwear, sportswear, housewares, footwear, etc.etc. L.L. Bean also operates a dozen retail stores and about 15 factory outlets throughout the Northeast. It also sells online through English- and Japanese-language Web sites.
Overall, the KarstadtQuelleportals benefited particularly strongly from the close interrelation of stationary, catalogue and Internet distribution. For example, 6 percent of purchases in a Karstadtdepartment store are triggered by karstadt.de. Quelle too realized strong multi-channel effects. The Quelle catalogue generated 40 percent of orders on quelle.de. Conversely, the online shop generated 28 percent of orders from the Quelle catalogue.
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Trends on the Internet
Communities and Platforms (Web 2.0)
Microsoft, Amazon, eBay, Google, Yahoo etc.
Traditional Retailers and Distance SellersTraditional Retailers and Distance Sellers
Niche Players offering webNiche Players offering web--adapted servicesadapted services
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E X A M P L EE X A M P L E
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eBay and traditional...
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Eurostar and the Da Vinci Code
An online competition An online competition to win the ultimate prize to win the ultimate prize including $ 200.000 including $ 200.000 worth of free worth of free EurostartEurostarttraveltravel
The integration comes The integration comes from the books, the film from the books, the film and the digital activitiesand the digital activities
EurostarEurostar bookings went bookings went up 15% since the up 15% since the campaign and generated campaign and generated 2 million game plays2 million game plays
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bol.com
Digitalized e-magazine
Full of information, sound, interviews, spoken information etc. Uses all media: print, sound, picture etc.
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Anttilla Mail Order - Finland
Anttila is a leading mailorder company, Operating in Finland, Estonia and Latvia
Loyalty club to increase brandawareness and to gain new customers
Campaigns generated high revenues, catalogue Requests and synergies between the channels
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E-shoppers turn to catalogue
Most British home shoppers (80%) now report browsing through printed catalogues before ordering online, according to research from Experian, which found that the home shopping market is home to a growing number of brands that have integrated their offline catalogue marketing with online sales features.
(Experian August 2007)
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Example: Corendon
Corendon started as a lowcost airline
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Internet Access Nov 2007
71
57 57
24 22 19 1712
5
North
Am
erica
Wes
t Euro
peAust
ralia
East E
urope
South A
mer
ica
Wor
ld Ave
rage
Middle
East
AsiaAfri
ca
Source: Internetworldstats
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O N L I N E I s s u e sO N L I N E I s s u e s
Security and Confidence:Security and Confidence:--the offer must be truthful the offer must be truthful --delivery must be on timedelivery must be on time--secure paymentsecure payment--secure datasecure data--trustschemetrustscheme--spamspam
EU: only 6% crossEU: only 6% cross--borderbordereBay: 80 mln. active userseBay: 80 mln. active users
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T R E N DThe number of Europeans shopping online has increased with 37% over the last two years The next 5 years they will grow from 100 million to 174 millionOverall e-commerce in Europe will grow to $407 billion in 2011 from $133 billion in 2006Main products: travel, clothing, media, white goods, electronics, events tickets, food, DIY
(Forrester Research and eMarketer)
Internet is rapidly becoming the leading channel (according to the maturity of internet)
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Delivery is vital!
The Daily Mail 24 December 2007
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Secure Payment is vitalInitiative of PayDutch Group and TNT Post in the Netherlands and Belgium
PayDutch is the go-between between Customer and Online Supplier
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POSTAL SERVICES
Postal Services remainof the utmostimportance in spite ofor rather thanks to thegrowing importance ofthe Internet:
At the front end:Catalogues andmailings
At the back end:parcels
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T r e n d sT r e n d sNo overall transferbetween paper andelectronic mailings as both continue to growCompanies are able to better target theirmailings and therebyreduce mail volumesInternet players are using traditional mail (eBay and others)Logistics and deliveryremain vital
(source, FEVAD, USDMA and others)
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France: Development of catalogues and mailings
(in million items)
43244370 4361
4601
4750
2000
2001
2002
2003
2004
No transfer betweenpaper and electronicmailings as bothcontinue to grow
Companies are able to better target theirmailings and therebyreduce mail volumes
SOURCE: FEVAD
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Letter Post per capita
68.3 67.7 66.7
2004 2005 2006
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Number of Parcels per 1000inhabitants
854924 947
2004 2005 2006
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5th Annual World Postal Survey
2007Courtesy: E-biss Solutions
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Q: Your volume of domestic letter mail will...
Grow
05
1015202530354045
2003 2004 2005 2006 2007
34%30%
42% 42%35%
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Q: Your volume of direct mail will...
grow same decline
2007
2006
2005
65%
68%
78%
10%
22%
17%
25%
10%
5%
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Q: Your volume of Courier & Express will...
Your expectations in %?
68
22
10
65
8
27
grow same decline
20062007
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Overall, your confidence for the future of your organisation is...
0
10
20
30
40
50
60
70
2003 2004 2005 2006 2007
51%43% 47%
High63%
Confidence explosion
59%
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Future of Direct Mail
Source: WinterberrySource: Winterberry
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The inherent strengths of mail
PersonalUniversalTailoredTargetedDirectFlexible & CreativeMeasurablePortablePhysicalComplementary
UK – Source DMIS UK
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DM Germany (billion euro)
17.118.9
20.3 21.5 21.2
2930.8
32 31.2 32 32.5
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Tendencies:Internet higherMail slightly lower
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Challenges and Opportunities
Although Internet expenditures are rapidly rising, there is still an opportunity for direct mailGo into internet solutions (PayDutch, certifications)Access to marketsPromote DM in general in order to create market
Growing competitionSlowing economysubstitution
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Some examples
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If you believe in the future, the future will be bright!
Conclusion