THE DEFINITIVE GUIDE TO

Digital
Transformation
in Enterprise
Direct Marketing

Executive Summary

Executive Summary

Best-in-class enterprise marketing organizations are seeking innovation opportunities, overhauling processes and investing in the technology infrastructure required to deliver personalized content through online and offline channels. These organizational transformations yield tangible results in the form of increased consumer engagement and lower costs of content creation and distribution. Within the marketing organization, and despite its long track record of success, no channel is more neglected than Direct Mail.

79%

OF CONSUMERS
ACT ON DIRECT
MAIL IMMEDIATELY

TESTING CAN INCREASE THE AVERAGE DIRECT MAIL RESPONSE BY 35%

PERSONALIZATION CAN DELIVER
5X-8X THE ROI

COMBINING DIRECT MAIL
& DIGITAL CAN INCREASE
CONVERSION BY 10%-30%

EBOOK

New Testing Trends in Direct Marketing

DIRECT MAIL

VS

EMAIL
calendar
17

DAY
LIFESPAN

clock
2

SECOND
LIFESPAN

34%

CUSTOMER
ACTION

24%

CUSTOMER
ACTION

It is no surprise that marketers rely on Direct Mail to drive customer behavior. However, the demands of managing a high velocity of data-driven and highly variable personalized Direct Mail content limits the ways they can communicate with consumers, and ultimately impedes improved performance from Direct Mail.

Many organizations continue to employ legacy operating models to support Direct Mail that rely on the availability, competence, bandwidth, and coordination of internal and external human resources to plan, manage and execute the production and distribution of Direct Mail content. As a result, marketers compromise the timing and quality of their Direct Mail content by investing too much time and money in operating models that have too much executional risk and yield too little in the way of personalization and content variety.

DIRECT MAIL RESPONSE RATES
house
5.1%

DIRECT MAIL:
HOUSE FILE

prospect
2.9%

DIRECT MAIL:
PROSPECT LIST

VS
DIGITAL RESPONSE RATES
mail2
0.6%

EMAIL

smartphone
0.2%

ONLINE DISPLAY

dollar
0.6%

PAID SEARCH

socials
0.4%

SOCIAL MEDIA

What does it take to do Digitized Direct Marketing right?

WE INTERVIEWED AND SURVEYED:

executives
AT
Fortune 500 companies
WITH
million dollars invested
annually in Direct Mail

WE SOUGHT TO ANSWER THREE KEY QUESTIONS:

What capabilities are required to create personalized, data-driven Direct Mail content at scale?

What risks and impacts are associated with legacy operating models that support Direct Mail?

How can enterprise marketing organizations evolve their processes and technologies to meet their Direct Mail content needs while minimizing organizational impacts?

THE PROBLEM

The Problem

You can’t break new ground using the same old systems!

True Customer Experience and Omnichannel Marketing require marketers to offer a variety of personalized and engaging content to audiences both on and offline, coordinate communications across channels and media, and rapidly test, learn and scale campaign strategies.

LEGACY DIRECT MAIL OPERATING MODELS CAN’T KEEP UP.

They’re inefficient. Extended cycle times and cost inefficiencies limit the quality and velocity of Direct Mail content that a marketing organization can distribute. Our Direct Marketing Survey revealed that most marketing organizations require three to nine months to plan and execute an effective Direct Mail content strategy. Organizations that leverage marketing technologies for improved automation reported Average Cycle Times (ACTs) that were 70% shorter than their less tech-savvy peers. They also reduce variable costs such as printing and postage.

They don’t leverage personalization. 90% of survey respondents reported dissatisfaction with the variety of their Direct Mail content. Marketing operations are optimized for ease of execution. They don’t meet strategic demands for more personalized and integrated communications that can be quantitatively tested for performance. As a result, the majority of Direct Mail is sent in bulk to broad audiences with static, non-personalized content that is largely undifferentiated from that of competitors — despite the fact that increased personalization improves campaign profitability.

They’re risky. Legacy Direct Mail operating models expose marketing organizations to unnecessary financial and operational risks, while legacy methods for managing data also create cybersecurity risks.

They’re not integrated. Legacy models store data in disparate and disconnected hardware and systems — both within and outside the marketing organization. This contributes to the long ACTs associated with Direct Mail, but also creates a lack of operational transparency, information silos, and delays in reporting. It also inhibits shared learning within organizations.

90%

of survey respondents reported dissatisfaction with the variety of their Direct Mail content.

THE FUTURE OF DIRECT MAIL

Introducing the future of enterprise Direct Marketing.

Transforming processes and tools allows marketers to leverage technology to easily create and version Direct Mail communications at scale, leading to the delivery of more personalized offers and content to customers and prospects. Integrations with marketing technology infrastructure and data sources allow Direct Marketing teams to create and distribute a variety of content based on customer behavior and attributes in real time and integrate these touchpoints with other marketing channels for improved results.