Key Ingredients to Successful Fulfillment
Yesterday, an associate and I had the pleasure of meeting with a new client team to discuss product sampling. Down we went, armed with samples of various types of packages that we have mailed over the years, ranging from “cheap & cheerful” to “sleek and expensive”. We enjoyed working with an attentive group as we explained how to optimize the overall process and avoid many of the pitfalls that can worm their way into some fulfillment projects.
Interestingly, yesterday’s meeting brought back memories of another client that called a few years back to say that she had attended one of our seminars and if she learned one thing, it was that she should call us before starting to plan her own fulfillment project.
What we discuss with these clients is not rocket science, but it does provide us with an opportunity to:
- review different options
- examine where they can deliver an intriguing package, while minimizing costs
- look at ideas to maximize campaign ROI, and
- help to avoid false expectations on the part of consumers that are requesting product samples.
One of the first things we like to cover is the type of packaging that the client might like to use, as this will affect design, print, assembly and postage costs. It’s very interesting to see how some gravitate to the sleek and expensive when you might least expect it, whereas others simply want the cheapest package possible to get the sample delivered. A lot has to do with brand and product positioning, although we often see many variations in packaging costs across different brands within the same organization.
Next, we like to look at the sizes of the samples they might be proposing to mail. Too often, we have seen package designs for samples that are just beyond 3.5 cm in thickness. Of course the challenge here is that something that thick can only be mailed as a parcel (in Canada) and this makes some fulfillment projects cost-prohibitive. In addition, if the overall thickness of the package (including the sample) can be kept to a maximum of 2 cm or less, it can really help to keep postage costs down. Of course we can mail packages that are up to 3.5 cm thick as Dimensional Addressed Admail, but this will be more expensive (though far less than parcel rates).
For example, on one project alone, I would estimate that the client has likely spent close to $100,000 in additional postage on fulfillment of 250,000+ samples, because the sample itself is 2.1 cm thick, which is 1 mm beyond the thickness for Oversize Addressed Admail. We have discussed this with the client several times over the last few years, however, their samples are manufactured in the US and there is little they can do to influence a re-design of the packaging.
It is also important to have a reality check on commitments to consumers for delivery times. Many people are unaware that Addressed Admail can take up to three weeks for delivery from Ontario to BC. Also, whether fulfillment requests come via the web, a call centre or from a freestanding insert, fulfillment requests are usually grouped into one or more mailings. To this end, we often receive groups of records that have been gathered over a two-week period. If we add a day or two for mail preparation and we are using Addressed Admail, then it could be up to six weeks before a consumer that requested a sample in BC actually receives the sample in the mail.
The alternative would be to use Lettermail, which will arrive within a few days. If possible, some clients will occasionally use Lettermail to fulfill requests for further destinations, while continuing to use Addressed Admail within province and often for adjoining provinces. However, if an item exceeds 2 cm in thickness it cannot be mailed as Lettermail and Dimensional Addressed Admail might be the most viable option apart from parcel service, which is considerably more expensive.
Akin to delivery times, we also cover geographic concentrations as this definitely affects average postage costs and even more dramatically for Dimensional Addressed Admail. Letter Carrier Presort (LCP) sort software, which we used for Addressed Admail products creates bundles of mail at five different levels, based on a minimum requirement of eight pieces per bundle. The levels range from what is called Delivery Mode Direct (DMD), where the mail can be given directly to a letter carrier within a station, all the way up to what is called Residue, which is often a mish-mash of extraneous mail to be delivered across a broad geographic area.
To show you how pricing can vary, individual pieces within an Oversize Addressed Admail DMD bundle (weighing 50 grams or less) are priced at $0.47 each, whereas pieces in a Residue bundle for the same class of mail at the same weight are priced at $0.68 each. That is quite an increase, but not nearly as dramatic as that for Dimensional Addressed Admail (Medium Size) where the base DMD rate is $0.72 and the Residue rate is $1.52. So, it follows that 5,000 pieces of mail all addressed to addresses in Kitchener will enjoy much better average rates than 5,000 pieces of mailed distributed to addresses right across the county. Further, it is a fact that 10,000 pieces of mail to be delivered nationally will, on average, enjoy lower average postage rates than 5,000 pieces delivered nationally with a similar distribution pattern.
Sooooo, where is this all going? Well, as it turns out, because volumes can affect average postage so dramatically, in some instances clients actually prefer to wait longer to accumulate more records, thus driving postage costs lower. However, although this is a good way to save money, it does affect the amount of time it can take to get a sample into the hands of the consumer.
We also like to take a few minutes to chat about personalization and the many different ways it can be used. We had the good fortune to work with a DM (Direct Marketing) guru for many years and he taught us how to use personalization without even mentioning the person’s name. It was all a matter of having quality data (depth, accurate and current) and knowing how to use it. A simple example would be to tailor a short, “generic” card that could be used to insightfully coax consumers using a competitor’s product to try your product or using a similar “generic” card as a thank-you note to consumers known to be brand loyal. Of course this type of personalization can be enhanced by using the consumer’s name or other types of information housed within the database.
Lastly, we like to take a few minutes to discuss what we have affectionately named “Silly Checking”, which is the process of culling off the unsavoury names that are often entered via web-based sample request forms. You would be surprised at some of the ingenious but very rude sounding phonetic masterpieces that some people come up with. We have found that inspiration for these innovative but embarrassing consumer names tends to be more closely associated with certain types of feminine products. The other trick that often escapes basic de-duping is to use subtly different variations to spell one’s first and last names. We have software that tells us instantly if there have been more than 5 requests from the same postal code.
Surprisingly, we actually found over 600 requests from the same consumer on a file that was supposed to have been de-duped before being delivered to us.
As I said in the opening, we had a very good meeting. The client team learned that there were many options available at different price levels. I think we also showed them how to be frugal, while sill delivering an attractive package to their consumers. Of course this does tie in nicely with our “Sensible Solutions for Mailing” theme that we have carried over the years.
If you would like more information on sample fulfillment we invite you to call or send us an email. We would be pleased to meet with you and help you to deliver a “no surprises” fulfillment campaign that fits both your corporate image and budget.
