About 20 years ago, I had occasion to do some database marketing work for an engineering company. There was a commitment to direct marketing (DM) with a personal touch and it worked well.

Interestingly, I was very impressed with the enthusiasm shown by one of the senior partners. As I was packing up my laptop one evening he stopped by for a chat. It was then I learned that many years before, when he was quite junior in his profession, he had send out 250 packages to different aircraft manufacturers and associated companies, promoting his firm’s services. He said at first that it was little disappointing.

As we chatted further, he told me that his boss seemed to take pleasure in chiding him about how much time and money he had wasted, demeaning his efforts. With a grin, he said that all changed about six months later when a call came in from one of Canada’s foremost aircraft manufacturers. Apparently they had been favourably impressed with the materials they had received and it resulted in the largest contract that his firm had ever landed. And, more contracts followed. Of course, the young engineer was elated. He also learned that the success of a direct marketing campaign cannot always be measured by the number of responses in the first two weeks after a mail drop.

On the other side of the coin some campaigns can generate a terrific number of short-term responses, simply due to the offer, but sometimes, that’s where it ends. Or does it?

We always hear ROI, ROI, ROI, but how do you really measure it? To answer this question, I think you have to first determine what you are really trying to accomplish and when you might reasonably expect to achieve it. Once these decisions have been made, then you can apply the yardstick.

In my associate’s case, the campaign had been considered a write-off. He was the goat, but overnight, he became the firm’s hero. I should also add that there was only one mail drop. We always stress the value of repetition in direct marketing and I really wonder what his boss might have said had he wished to do a follow-up mailing two months down the road?

• innovative design, be it die cut, graphics or both
• clearly defined benefits
• call to action:
  • strong offer
  • extraordinary offer
• repetition
• timing
• right target audience
• brand continuity and integration

To differentiate, a strong offer would motivate you, whereas an extraordinary offer would compel you take action. In the latter case, it could be an “insane” loss leader or an offer that “you can’t refuse”.

Let’s take a moment to look at projects from different ends of the spectrum.

Dreadful Disaster

I recall a project where we were provided with 10,000 postcards to announce the opening of a professional office. There were some appropriate graphics, however there was no call to action. We questioned the effectiveness, but as you know, “the customer is always right” and we mailed these as Unaddressed Admail to areas that had been selected by the client. It wasn’t surprising to hear that not a single call was received. So, what was missing? Well, virtually everything when we look at the list above. I can’t speak to the areas targeted, as we did not do the selections.

Resounding Success

Contrast this to an agency client that attended our January seminar and has gone on to do extraordinary work with die cut postcards. Using two new dies, they designed three die cut postcards that perfectly suited the type of the business being promoted. The three cards were mailed, individually, to the same target areas at one-month intervals. The success of this campaign was outstanding, so much so, that they did a similar fall campaign and have another campaign lined up for next spring.

What a difference in approach! What a difference in results!

Like everyone, we certainly enjoy sharing in success. We want your story to be like the last one.

If you want to be successful, here are some things you can do. You do not have to do all of them, but if you do, watch out!

Own Your Shape

Before delving into special shapes, it is important to note that we have mailed many rectangular 5” X 7” cards that have worked very well. Of course, they include most of the ingredients covered in this article.

As already mentioned, with the successful project above, the client chose to have two different dies made, and from these they created three different postcards for each campaign. As we have now completed mailings on the second campaign, prospects receiving these cards will be identifying the company with the shapes. Yes, it costs a little bit more, but it is a cool way to stand out and be noticed. It’s your shape!

Use One of Our Shapes

Many clients use our dies for their postcards:

We have dies for:

• round postcards
• oval postcards
• bagpiper
• spider web
• announcing (nicknamed Hector the Vector)

Have a Strong Call to Action

Gone are the days of Alice B. Toklas brownies, and cookies and cider are not likely to pull many people into “your store”. However, there are many things that can:

• significant discount
• limited time offer
• limited quantities on certain items (perhaps loss leaders)
• free gift
• announcing pending price increases
• free upgrade
• trade-in
• trial offer

Make ‘em Feel Special

If you are using addressed postcards, consider digitally printing the prospect’s name and perhaps another piece of information. On a recent project we did just that, using the prospect’s name and the community in which they lived. Our client actually received a call from one of the recipients who told him “That made me feel special.”

All of our addressed postcard packages are digitally printed and we will do two variable text substitutions at no additional cost, on the same side as the name & address block.

Get Your Timing Right

Okay, there may be times when you might take advantage of a great off-season deal such as an end of season special on golf clubs or skis. But it usually makes more sense to promote “in season”. For example, as we know, Canadian tax returns must be filed by the end of April each year. Therefore, it would not make any sense for those that prepare tax returns to be promoting their services in May.

Sell Benefits

Sometimes we get all wrapped up in the technology of what we are selling. Make sure that people understand the benefits of your products or services, which are usually derived from features.

Right Target Audience

One of the great assets of direct marketing is that you decide who should receive you DM pieces.

For Addressed Admail, you can use your internal list, build a list or purchase a list from a list broker, based on specific demographics and. Regardless of which route you go, ensure that the data is accurate.

For targeting with Unaddressed Admail, you can select the neighourhoods that you think best fit your criteria. Or, you can use Canada Post’s GeoPost Plus system that allows you to provide demographics and receive a report containing neighborhoods with the highest percentage of match.

Repetition

Last, but certainly not least, do not underestimate the value of repetition. If your postcard is offering free money just for showing up, you may not need any repetition. Kidding aside, a compelling offer may minimize the need for repetition, however, it is one of the cornerstones for any type of marketing and is normally used in all types of direct marketing as well.

Galleries, Packages & Specifications

I hope that you have a few minutes to browse our galleries of actual die cut postcards and wire frame mockups and also take a look at the postcard packages that we offer.

We developed our postcard packages as an extended service allowing you to get everything you need for one low price. All postcard packages include printing, mail preparation and postage. There are also downloadable specifications for our round, oval and rectangular packages which can be accessed at the bottom of the respective web page for each type of postcard.

Don’t forget that our addressed postcards are digitally printed and we allow up to two variable text substitutions. This can help you to connect at a personal level. However, you must ensure that your data is up to the task. You do not want to see greetings such as “Hi D.” (resulting from having an initial only, rather than a complete first name).

Conclusion

We can’t argue with the facts. There are many, many successful postcard campaigns, so we know that postcards do work. But as we have shown, some work better than others.

Although postcards provide a succinct cost-effective way to put your message into people’s hands, the key ingredients for success with postcards are really the same for most direct marketing projects. If you have a good product or service and follow the suggestions above, you should achieve success. Good luck!

Successful DM is not dead, but it has adapted! We are pleased to report that it is alive and well, living at Highland Marketing.

We have been mailing odd shapes and we have also been using personalization for many years. So what has changed and how has DM adapted? First, some mailers are starting to use approaches that they may have considered a bit too pricey before, enabling them to stand out in an otherwise “me too” market. Second, advances in technology allow us to take personalization to a whole new level. Using digital presses, we can print in full colour on heavier stocks, inserting variable text and graphics as we choose. We can also die cut these pieces, allowing us to use higher-level personalization in a variety of shapes, sizes and colours.

We can’t argue with the facts. The following recent and ongoing projects have proven to be extremely successful:

• personalized die cut postcard positioned on top of client’s display ad inside magazine
• die cuts of both a car and house used in unaddressed campaign for insurance agency
• message in a bottle program that drew a 1% close rate, and which recovered all costs and enjoys ongoing revenues
• product sampling – try it, you’ll like it – if you like it, you’ll buy it

I could go on, but as we look at these campaigns, I see a common thread that can be summed up in one word – innovation. You may also argue that product sampling has been around for a while, and you are correct. But, I would like to note that much of what we see today is in exciting packaging, such as pillow boxes or custom carriers. I would also add that all sample packages are “lumpy” and lumpy mail almost always gets opened.

I am not saying that some conventional DM programs don’t work, because they do. However, some direct marketers have chosen to step outside of ordinary and have achieved extraordinary results.

When it comes to business building and marketing, propagate is such an appropriate word. It is synonymous with physical multiplication and growth as well as publicizing and spreading a message.

It can be tough to decide how to propagate your business these days. However, direct mail is still the “marketing gift that keeps on giving”. Why? Because it is physical, tangible, portable and can be read at one’s leisure, anywhere they choose. Also, direct mail is one of the few media that allows you to pick your own specific audiences. We agree that the e-channel can be very effective, but it is also cluttered and today’s science is actually crediting physical mail with higher retention (given it’s tangible nature) as compared to viewing the same message online. There is also some question as to read rates for e-newsletters given the vast numbers that are now being distributed and how they are often “out of sight and out of mind”. However, physical mail has presence and remains apparent, which is one of its greatest strengths.

Sophisticated utilization and integration of data also allows marketing campaigns to take on different forms of communication. This too has been with us for sometime, but as noted above, when we combine these concepts with digital print technologies, the sky becomes the limit in terms of what we can do. Although not all glamour, our recent post entitled Data, Design & Delivery: The Three D’s of Digital Print discusses the mechanics for success and has some solid suggestions on how you can really make these new techniques work for you.

Given the successes that we have seen, we know that direct mail is, indeed, alive and well. In each of the campaigns noted above, Highland Marketing played a key role in the promotion of a concept, in-depth project planning or both. Inasmuch as marketers have to innovate and propagate, we recognize that we must too. Believe me, there is no better feeling than sharing in success.

Today, more than ever, blog posts and tweets are offering us all sorts of advice on effective personalization, data segmentation and cross-selling opportunities. These are great concepts and I like what I am reading. I also see different articles on data hygiene and the value of accurate data, and I like these too. However, having seen some of the finished product and listened to the heartache stemming from some third-party direct marketing (DM) programs, I wonder why I am not seeing more about the actual delivery of the message. And, “delivery” in this context is not referring to Canada Post, the USPS or Joe’s Delivery Service. It’s referring to how some things are being expressed and, not necessarily just what is being said.

Much of how things are said hinges on the vital correlation between how you choose to deliver your message and the quality of your data. Both of these elements must integrate effectively with the overall design of the DM piece.

My early training was in applications systems design and we were always taught to look at what the system was intended to deliver and work back from there. This allowed us to look at each output field and determine if it was to be derived through a process or if it was static information that we could extract from a file.

Interestingly, digital print is also a systems process. So, if we want the end result to look good, we have to design the end product much the same way, visualizing it and determining which data elements will be used and if they will come to us in a static form or be calculated dynamically. Further, sometimes not all data is readily useable and we must plan for these contingencies by having a Plan B and often even a Plan C, so that we can adjust for all eventualities.

D for Data

It goes without saying that most of our clients design DM pieces with appealing graphics and excellent copy. As many of our contacts are seasoned marketers this is their strength. Yet, when it comes to incorporating variable data, we begin to see challenges. And why not? Databases are not usually their strength and data inconsistencies and misconceptions can often be the biggest source of trouble.

If you are a designer and you feel that a little Database 101 is not for you, I urge you to please read on, because what follows can help to minimize the chances of blowing your brains out over what many may consider nothing but menial tedium. It’s a dirty job, but somebody’s got to do it. If you don’t want to be the one, you can certainly pay someone to do it, but at the end of the day, if it’s not done, you could certainly end up paying for it anyhow.

I recognize that what is acceptable in format and manners has changed over the years. Virtually all business letters used to have formal greetings, such as “Dear Mr. Smith”, whereas today our business emails often start with “Hey Bill”. However, I still cringe when I receive a personalized (and I use the term loosely) letter or email that starts out as “Dear DAVE WARD”. It just looks to me like someone didn’t try or couldn’t be bothered to create a more appropriate greeting. After all there are programs that can split fields and do case conversions. And, I’m pleased to say that I don’t think that this is necessarily an age thing, as a “twenty-something” colleague that I was speaking with just last week expressed disdain for a greeting that she received structured as “Hi C. Smith”.

Sometimes people don’t understand data or fail to ask the right questions. Let me ask you this: if you were sending out a personalized DM piece would you like to use any of the following greetings?

• Dear Mr. _____
• Dear D.
• Dear DAVE
• Dear DAVE WARD
• Dear dAVE

I would hope not, and would be pleased to show you how you can avoid these challenges, eliminate “impersonal personalization”, connect effectively and keep your campaign dollars working for you, rather than spiraling down the drain.

First of all, if you are dealing with upper case data, you can have your mailing data converted to mixed case. Right off the bat, this will correct the “Dear DAVE” and “Dear dAVE”. Yes, it will also convert “Dear DAVE WARD” to “Dear Dave Ward”, but that is still less than ideal. So, what we want to do next is to parse the contact string into a first name of “Dave” and a last name of “Ward” so that our greeting simply becomes “Dear Dave”. Again, there are techniques that can be used to parse fields, albeit, in some cases some manual intervention may be required. The case conversions and field parsing should be viewed as one-time investments and you should have a way to either a) update your main system or b) have a corresponding, indexed file that your mail service provider can use to update key fields prior to mailing. These things should be discussed with your service provider at the outset, because you shouldn’t have to incur these costs every time you do a DM campaign.

Sometimes, however, we just can’t create a perfect greeting and it can become a matter of selecting the lesser of two evils. These challenges often stem from how the data fields were set up initially, as well has how the data has been gathered and entered. We have always recommended that the contact information be gathered or entered using a Title field (Mr., Ms. etc.), a First Name field and a Last Name field. This way, if the person enters a First Name of “P” and a Last Name of “Smith”, if we also have the title, we can simply use it together with the Last Name (e.g. Dear Ms. Smith).

Okay, but what can we do about “Dear Mr. ______” and “Dear D.”? Your options here would include:

• calling the contacts to update the information (not always viable)
• using a generic greeting (works better in some cases than others)
• excluding these records from the mailing

In our business, client preference always rules and we have used all of the solutions above at one time or another. For example, we had a very small handful of records where we used a generic greeting of “WHEAT PRODUCER” on the personalized baker cards that we recently tipped into a magazine on top of the advertiser display ad.

Also be cautious of rented listed lists. If you specify that all records must have first and last names, you might still receive some records where there is only a first initial rather than a complete first name. I recall a project where a client had rented a list and assured us that all of the first name fields were valid. However, as we loaded the data, we found several records that contained only a first initial. After discussing different options with the client, they elected to exclude these records rather than sending out greetings such “Dear D. Jones”.

D for Design

There are many different variations on the process of digital print and the variable substitution of data, but they all share two common elements. First, they have place markers where variable data will be inserted and second, the lengths of the fields to be inserted will vary on the finished pieces that are produced. No, it’s not rocket science, but if you don’t analyze the data first to determine your maximum field lengths, you will likely encounter premature line wrapping, which can cause:

• copy and possibly graphics to float off the page
• truncated copy within a text box

Does this really happen? Unfortunately, yes, and we have seen it on many pieces that we have received. Of course, some designs are more vulnerable to these types of challenges than others. Certainly some specialty mailers (such as die cut postcards) that are using larger fonts for greetings and other prominent text can be subject to these problems. But, at the same time, so can a personalized letter that has substitutions within a text box, so there is some degree of vulnerability at all levels. However, with a bit of effective data analysis, pieces can almost always be specifically designed to accommodate maximum lengths for all substitutions.

We shouldn’t expect most designers to perform this type of analysis on their own. After all, it’s not necessarily their strength. However, it is something that they must take into account, and requests can be made for third party vendors to provide a detailed analysis. With this critical information in hand, designers can then select the appropriate fonts and font sizes and allocate sufficient space within the design to accommodate all substitutions.

Before departing this subject I want to make one final observation on how the use of upper case can dramatically affect how much space you may require. Please have a look at the following l’s and L’s:

• 40 l’s: llllllllllllllllllllllllllllllllllllllll
• 40 L’s: LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

The foregoing shows the same font at the same font size, but just look at the difference in length when using upper case!

Of course, the other aspect of design is producing something that has appeal, gets read and generates responses. While experienced marketers will already understand these concepts, there may be others out there that can use a couple of tips. If those folks can simply remember “AIDA” when designing their marketing materials, they will be on their way to creating solid marketing pieces. “AIDA” is an acronym that stands for Attention, Interest, Desire and Action and you can read more about it at ChangingMinds.org.

D for Delivery of Your Message

Thus far, we have looked at how you can combat the effects of weak data on your campaigns, how field lengths must be taken into account at the design stage and we’ve touched on the important elements of Attention, Interest, Desire and Action. The last item that we want to examine is how some very successful marketers use data to deliver seamless, “touchy-feely” messages that make the reader feel right at home.

If you want to engage your reader this way, first you must be careful not to turn them off with a lot of servile flattery by using their name in every paragraph. Again, looking at the baker card campaign that I mentioned above, the card only uses two pieces of variable information. The contact name is used in the greeting and the community name is used, but once, to mention that the seeds being promoted might be perfect for the recipient’s own area. There is no fawning, just a plain, insightful message that worked.

Depending on the richness of the data that you are using, you can also engage your readers at a personal level without even using their names. Your present data may not be as extensive as what I will discuss here, but this type of data is available and, although it can be pricey, it can also be an excellent resource for building your overall client base.

Let’s assume for a moment that we have purchased a list of consumers that suffer from back pain, headache or both. We might also know what their favourite pain remedies are and whether these consumers are brand loyal or using competitors’ brands. This type of data is powerful medicine when used in the hands of a skilled marketer.

Although I’m sure that most people would not structure a letter this way, let’s look at what we would not want to say to someone suffering from back ache that is currently using a competitor’s brand of acetaminophen:

Dear Dave,

I know that you suffer from back pain and that you are currently using Pain-Whackers acetaminophen for your pain relief.

Dave, we want you to try our. . . .

If you are Dave, are you buying this? Chances are that your reaction would be something along the lines of thinking “Who are these people and where did they get all of this information about me?” as you scrunch up the letter prior to tossing in into “File 13” (the garbage).

Let’s contrast this to the following:

Dear Dave,

We all know that when back pain and headaches strike, it’s great to have fast-acting relief that we can count on.

The dependability of our advanced ibuprofen is unparalleled when it to comes to delivering. . .

Notice that this letter references both back pain and headaches, leading with the more appropriate (in this case, back pain). By mentioning both ailments in this order, it minimizes the likelihood of raising the suspicious question of, “How’d they know I suffer from back pain?”, as might be the case if only the one ailment were mentioned. Of course, if Dave happened to be a headache sufferer, these would be reversed, as follows:

We all know that when headaches and back pain strike, it’s great to have fast-acting relief that we can count on.

This letter also subtly extols the virtues and an alternate analgesic without mentioning the fact that we know that acetaminophen is currently the pain remedy of choice.

These types of letters can be structured in many different ways and I am sure that you can identify opportunities that you could use in your own industry. However, keeping it subtle and engaging the reader in an insightful way are key.

So, by embracing the philosophy of “less is more”, using specific personal information sparingly, and then tailoring your message to connect with your reader without being obvious, you can certainly deliver your message in a powerful way.

Sir Francis Bacon said “Knowledge is Power” and how you use the knowledge that you have at your disposal can certainly affect the power of you message.

As I said at the outset, I like many of the articles that I am reading and agree whole-heartedly with their objectives. But, I have also heard of some avoidable challenges that have arisen on some third-party projects. I would like to be able to tell you that we win every project that our many friends and associates are involved with, but that would not be true. If we did, I truly believe that we could circumvent these types of problems. However, we have helped to orchestrate quite a few successes in these areas and I hope that readers of this post will be able to use some or all of the ideas presented to drive successful personalized DM projects, minimizing or eliminating the various challenges that we have discussed.

Image credit: Kriss Szkurlatowski (modified)

Last Wednesday, we ran our first two ½-day seminars on Machineable Presort. In case you are not aware, Machineable Presort is a new machineable product for Short/Long Addressed Admail items weighing up to 50 grams, that Canada Post will implement on January 17, 2011.

Our objectives in the seminar were to demonstrate the financial benefits under different scenarios, to examine key factors that will affect readability, and to review the extensive support resources that are available, while showing participants where to find them. We also stressed that Machineable Presort is a win-win product through which you, the mailer, and Canada Post can both save money.

Because the physical characteristics and quality of materials are critically important for Machineable Presort, we sourced a variety of props (different envelopes, high gloss & textured stocks etc.) so that participants could see and feel materials that would and wouldn’t work. I think this really made a difference, as it seemed to put things in a better context when we looked at the definitions of opacity luminescence, reflectance, porosity etc.

We also presented average costs from 14 different LCP sorts, ranging from 1,000 pieces up to 100,000 pieces, at both local and national levels. Please see chart below (click to enlarge).

Using this chart, you can compare average price differences between conventional presorted Addressed Admail and Machineable Presort at different volumes and geographic concentrations. As we have mentioned before, the cost savings range from just under 3% to roughly 18%, and can be very attractive. Of course, the potential savings on a given project must be weighed against being able to:

• select from a broader range of fonts
• expand creative into more areas of the envelope (although this is now quite liberal already)
• use an unsealed self-mailer
• use a high gloss finish on the entire mailing piece
• use poorer quality materials (to a point)

I must admit that we have not really been strong proponents of the current machineable Addressed Admail product largely because a) the cost savings were not that attractive and b) we could not always depend on the physical characteristics and quality of the materials to be used.

So, why the change of heart? Well, first of all, price incentives are much better. Secondly, as a part of its Postal Transformation strategy, Canada Post is making a huge investment to increase efficiencies, a large part of which is expanding its machineable capabilities in order to reduce costs. That tells us that machineable mail is not going to go away, and that we are likely looking at the tip of the iceberg. Given this, logic now dictates that it doesn’t make sense to fight the tide, but rather to invest in becoming product experts and guide clients on the effective use of this new product.

Today, the largest benefit of Machineable Presort is cost savings. We have inquired about improvements in delivery times, but as we currently understand, the standard delivery times for Machineable Presort will remain the same as those that exist for conventional Addressed Admail. That said, savings are important to most of us and there can be significant savings on a single mailing, as well as accrued savings for frequent mailers.

If we want to use Machineable Presort, then our mail must be readable and that means:

• the scanning equipment must be able to find the delivery address
• the delivery address must be machine legible
• Canada Post must be able to print a bar code on the mailing piece

Given this, our ability to support these aspects of machineability are covered under the three elements that we have labeled as “mission critical”. These include:

• Format
• Materials
• Data

Format

Choose a Format

I want to re-emphasize that you still have plenty of room for creative elements when using Machineable Presort, and that you can select from a variety of Short/Long envelope and postcard formats. Canada Post has done a splendid job of creating a Machineable Mail Advisor, which includes an online gallery of different sizes and styles of mailing pieces that you can mail as Machineable Presort. If you select one of these designs and adhere to the specifications for “quiet zones” and address location, you will have taken an important first step.

Select a Font

When discussing the topic of format, we also have to consider font selection. Your physical layout may be acceptable, but if the scanners cannot read the addresses, the pieces will be rejected. Your success in this area will be based on the selected font and printed resolution. Canada Post recommends certain fonts, discourages the use of others and encourages mailers to submit any fonts that they may wish to use for testing. These fonts, along with an abundance of other relevant information can be found in the Machineable Postal Standards Guide. One of the things that we discussed at the seminar was plain common sense. Regardless of the font, if you submit a mailing with grainy, pixilated addresses, your pieces are likely going to be rejected.

Materials

Decide on Materials

Okay, so this is where we really got nervous about machineable products before. I cannot tell you exactly what window haze of 75% is, or exactly what an opacity reading of 80% looks like. I do not have a Sheffield scale for measuring smoothness or a spectrophotometer for measuring reflectance. But, I can tell you that quality (I know, a relative term) envelopes and materials will meet most of the required specifications. But, you don’t have to take my word for it, you can take Canada Post’s. I will explain.

Test Your Mailing Pieces

Canada Post offers you the opportunity to test your mailing pieces prior to the actual submission of your mailing. You will get a readability score back, and from there you can make any adjustments that you may require. Interestingly, for those that are new to machineable mail, you actually learn two things. First, you will get your readability rate, but secondly, you will also have a much better idea of what will work and what won’t. And, of course, once you have a better understanding of what is acceptable, you should be able to minimize risk without necessarily re-testing with every mailing that you do.

Maintain Consistency

All right, this sounds great, but is there a down side? If you are not attentive, you betcha there is! Once you have tested your pieces and you have an acceptable read rate, you must ensure that, when you deliver your mailing to Canada Post, the pieces are consistent with what has been tested. Believe me when I say that conditions can change. I recall a project where the sample envelope we based our quote on was quite different than what was supplied to us for the project. We had sourced a viable envelope and forwarded it to the marketing department, who then approved it. However, “Purchasing” got a better deal on an envelope made from a much lighter weight stock. Simply stated, a change in conditions like this could seriously jeopardize your read rates.

You must also pay close attention to the consistency of the address resolution. For example, you should not submit laser-printed envelopes for testing and then inkjet your addresses in draft mode when you prepare the mailing. The resolution will simply not be the same, and your read rates may be significantly less than in your test results.

Data

Pay Attention to Address Accuracy

When I first began my research on Machineable Presort, I must admit that I was not fully aware of the extent of the data implications. I have now learned that your address accuracy can also affect your machine readability, although this will not currently affect your readability rate.

Your mail is assessed for “read rate” (readability) by running it through the mail processing equipment (Multi Line Optical Character Readers) and assessing the ability to read and interpret the address, when matched against Canada Post’s Postal Code Address database. There are a number of factors other than the address components themselves that influence “read rate” including the placement of the address on the item, the font used and the quality of the ink. The equipment records the “read rate” for the mailing and, if the equipment cannot read the address to a 95% certainty (e.g. some pieces need to be manually handled), then a surcharge is applied to the mailing based on the difference between 95% and the actual read rate.

All Addressed Admail mailings of more than 5,000 pieces currently require a statement of address accuracy. One of the side benefits of producing this statement is that the same Canada Post-approved software that furnishes this report can also cleanse many of the addresses, resulting in a higher percentage of accuracy. Some mail service providers can provide this service at a very modest cost. Currently Address accuracy software matches mailer’s address lists against Canada Post’s Postal Code Range Database, however, effective January 17, 2011, mailers must use new Address Accuracy software that matches their address lists against Canada Post’s new Point of Call Address Database. This will not change the way that the “read rate” is determined by the equipment, but will help mailers to ensure their databases are more accurate, by flagging more addresses that are potentially undeliverable.

Be Aware of Field Lengths and Number of Print Lines

The other data challenge stems from the sizing of the address block when using window envelopes and (to a somewhat lesser degree) postcards. Most of these challenges are much easier to resolve when working with a consumer-oriented database as compared to databases housing business or government names. However, once you are aware of certain limitations, you can plan for them at one level or another.

If you check the clear zone requirements for window envelopes in the Machineable Postal Standards Guide and then do some math, you will see that the usable space within a 4 1/2 ” X 1 1/8” window is actually reduced to about 4” X 7/8”. The guide also specifies the minimum character height as well as the minimum requirements for line spacing. Inasmuch as we may be tempted to get more into the window by squeezing the font size down, doing so could likely result in character height and line spacing that are below specifications, so this is not really a viable option.

Using a font that provides 10 characters per inch (precise with non-proportional fonts and estimated with proportional fonts), field lengths for name and address fields would have to be limited to a maximum of 40 characters. Additionally, there would be zero left or right tolerance for inserting or lateral shifting of the piece once inside the envelope. While 40 characters might seem like a lot of room, it should be noted that the provincial ministry name of “Ontario Ministry of Agriculture and Rural Affairs” is 49 characters long–a full 23% beyond the assumed character limit.

As for the number of lines you can print, with a height of only 7/8” and a line spacing of 6 lines per inch, you will only be able to print 5 lines. This will probably be work for most consumer addresses, but will likely cause challenges with business or government addresses.

Lastly, as Machineable Presort requires an LCP sort (Letter Carrier Presort), you will also have to reserve 10 characters on one of the non-address lines to print the Delivery Mode Code data. Optionally, you may also reserve the top line above the name and address block to print the Delivery Mode Code. One way or the other, this will impact your addressing area, either through the line lengths or the number of lines required. In reality though, it is always be preferable to add an extra line, as an LCP sort requires information for container and bundle sequencing information, and this is usually printed on the line immediately above the name and address block.

As for postcards, when you look at the addressing requirements in the Machineable Postal Standards Guide you will see a required black, vertical line. The specifications state that there must be a minimum of 6 mm between that line and the name and address block. Where you place the vertical line will determine how much space is left for addressing. If you only leave 2 ½ inches for addressing and print at 10 characters per inch, you will limit your field lengths to a highly restrictive 25 characters. I raise this point, because we frequently see it happen, even when using the current, conventional LCP Addressed Admail product.

A “Case” in Point

As a final word on line lengths, please take a look at 40 l’s and 40 L’s:

40 l’s llllllllllllllllllllllllllllllllllllllll

40 L’s LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

As you can see, it takes more that twice the space to print the 40 L’s in upper case than lower case. Imagine trying to print 40 characters in upper case within an allowable 4-inch space using a proportional font.

If your data is in upper case, most mail service providers will have programs that can convert it to mixed case. Most of these programs will look after the Mc’s, Mac’s, O’Briens etc. However, you might see some conversions that change names like “XYZ CORPORATION” to “Xyz Corporation”. On the other hand though, if you are producing personalized letters, you would have the benefit of your greetings appearing as “Dear Dave” rather than “Dear DAVE”, with the former being far more personal. Sometimes there are trade-offs we can consider to help make things work.

To this point, we have looked at what we consider as the three “mission critical” elements of Format, Materials and Data. If you are not careful, these elements can, collectively or individually, affect your read rates and erode your savings. However, through fundamental planning and basic adherence to standards, we hope that you can keep your read rates well above the minimum level (discussed below).

Surcharges

What are Your Target Read Rates?

Having discussed the “nitty gritty” of machineability, you may be wondering about the surcharges we have mentioned and the impact of poor readability rates?

If you achieve a read rate of 95% or better, you have nothing to worry about. However, if your read rate is less than 95%, there will be a surcharge applied to your mailing.

What is the Surcharge and How is it Calculated?

The surcharge is calculated by applying the difference between the required read rate (95%) and the actual attained read rate to the total number of items in the mailing, then multiplying the outcome by the adjustment rate per item ($0.10). It may sound a bit confusing, but it is easily demonstrated in Example 1, below.

Example 1:

Actual Read Rate: 80%

Volume Mailed: 5,000

(.95 – .80) X 5,000 X $0.10 = $75
Average per item: $0.015

Your Safety Net

But what if there is a “fatal flaw” in your mailing that results in a 100% failure rate and a readability of 0%? Well, you can breathe a sigh of relief because Canada Post has capped the failure rate percentage at 56%, as shown in Example 2.

Example 2:

Actual Read Rate: 0% (capped at 56% for surcharge calculation purposes)

Volume Mailed: 5,000

(.95 – .56) X 5,000 X $0.10 = $195
Average per item: $0.039

This is actually a very good deal and should help to minimize any apprehension about the downside of the product. There is no doubt that a fatal flaw can erode savings. However, the surcharge can never exceed $0.039 per item and surprisingly, at some levels you will still see savings when you compare the conventional Addressed Admail rates to the “surcharge” adjusted rates, as shown in the chart below (click to enlarge):

Summary

Whether you made it this far in a single reading or you arrived here in stages, I am delighted that you made it through. As we said at the outset Machineable Presort can be a win-win product and most of us can be successful using it if we remember the rules and apply common sense.

In many ways Machineable Presort is one of those products that, if we look after it, it will look after us.

We hope that this article will help you to better understand Machineable Presort as well as how and when you might use it. As always, it there are any questions, we would be pleased to discuss them with you.

Header image courtesy of Canada Post

Being proponents of insightful (and tactical) personalization, we had been eagerly awaiting an opportunity to include a personalized marketing piece inside a magazine.

To help get the ball rolling on this concept, we coordinated the preparation of some suitable mock-ups that we provided to one of our associates, who promotes advertising for an agricultural publication (for which we provide mail preparation services). We were delighted when one of their advertisers decided that they were not only interested in doing a personalized postcard, but they also wanted it to be placed in a specific spot on top of their display ad within the magazine. What an awesome combination!

Then the fun began. The first step was to work with the client (the owner of the publication) to ensure that all of the greeting names were acceptable. We didn’t want anything like “Hey D.” or Hey ___” cropping up. The client did a splendid job in this area.

Next, we worked with the advertiser, taking their design and getting a custom die made for the postcard. We also helped prepare the bleed areas on the artwork, which would be necessary when the card went to print.

Once the final weights were checked, we ran the LCP (Letter Carrier Presort) postal sort and did the set up on the personalized postcard, which included a friendly greeting and a subtle reference to the community in which the recipient lived. We also included an unobtrusive code that our plant staff would use to match the personalized cards and the mailing addresses. Once the setup was done, the postcards were printed in LCP sort order to match the magazines.

For something this sophisticated, the assembly was done by hand. Each card was matched to the name and code on the magazine and the book was opened to the correct page, where the personalized die cut card was applied on top of the display ad using a glue dot.

How was the response? Well, we like to tell the story, below. But first, it’s important to note that there was a split, and the custom cards went to wheat producers only. Thus, not everyone receiving the magazine would have received a personalized card.

Anyway, one of the recipients called the advertiser to say he felt really special. He said, “I opened the magazine and there was my name. It said Hey Abe [not his real name]. That made me feel special. And, my neighbour, who gets the same magazine, didn’t get one of these cards and that made me feel even more special.”

For those that might be interested, here are some sample photos of the final piece (key areas of personalization underlined in red):

After having talked extensively about this kind of thing, we were incredibly pleased to have been a part of this groundbreaking promotion. From what we understand the response was good and it has caught the attention of a few other advertisers as well.

Now, we’re looking to do more innovative projects in which we can help advertisers connect in insightful ways with their customers and prospects. If you have a unique or interesting idea or project, please feel free to contact us. We’d love to help you bring it to fruition!

We hope that every direct marketing campaign that we work on will be enormously successful. To this end, we try to share tips and suggestions with clients whenever we can. What we plan to look at today is based on marketing fundamentals and actual results. It may appear self-serving in one sense, but we will be covering a key ingredient for success that is often overlooked, frequently resulting in poorer overall results.

I can’t count the number of times that I have seen the Blinds To Go commercial where Antoine keeps interrupting the speaker. Can’t say that it’s my favourite commercial, but I sure won’t forget it.

No business likes to spend more money then they have to, and I expect that Blinds To Go is no exception. So then, why are there so many repetitions of the same commercial? Well, I think we all know the answer. It’s so you will remember them the next time that you are in the market for blinds. Yes, I have gone to Blinds To Go when looking for blinds and, if you have one of their stores in your region, it’s likely that you have as well.

Repetition is critically important in any type of advertising, and direct marketing is no exception. Interestingly, when we work with seasoned marketers and advertising agencies on unaddressed campaigns, they will often mail the same (or similar) piece three times into the same target area. This is not simply to line the pockets of Canada Post, printers and mail service providers. It is to ensure that the message is received – and that it sticks.

We also see a lot of one-shot wonders, where a mailer sends out a single “vanilla” piece expecting that the phones will ring off the hook. I liken these mailings to the one-hit wonders in golf. This is where we tee up a new ball and swing blindly in hopes that we have crushed it 300 yards, only to pop it up or slice it into some nearby corn field.

Assuming that an advertising piece gets attention, generates interest, creates desire and has a call to action, it should generate responses after a few repetitions. There is no doubt that some extraordinary pieces with highly desired products or services and compelling offers may work with fewer or even perhaps a single drop, but as noted above, experience shows that repetition is a key factor in virtually all types of advertising.

So, if you’ve tried a single mail drop that didn’t seem to work, consider trying something different next time. Rather than doing a single drop of say 9,000 pieces, why not try 3 drops of 3,000 pieces to the same audience, at two or three week intervals. Provided your message combines the key ingredients noted above, you might be very surprised at the increased response rates.

We wish you great success with your fall direct marketing campaigns. If we can help in any way, we would welcome the opportunity to chat with you.

Okay, so we are not all physicists and, on occasion, people get the terms translucent and opaque reversed. However, as you will see, this could cause real problems when using Machineable Presorted Addressed Admail, so we want to take a few minutes to clarify these important concepts.

If something is opaque light cannot pass through it and, therefore, you cannot see through it. If something is translucent, then light can pass through it and you can see through it. The extent to which light is blocked is referred to as opacity. If opacity is very low, one can see through something more readily. If opacity is high it is more difficult to see through it.

As direct marketers, opacity may not seem like all that important of a concept right now, but with Canada Post’s push towards more machineable mail products, it’s a concept that is going to become increasingly important for all of us.

Why? Well, when it comes to envelope construction for machineable products, Canada Post cites a required opacity of 80% or greater. Any machineable mailing that fails to meet these requirements can be subject to rejection. Since rejections cost you money and can erode the savings of using Machineable Presort, it only stands to reason that the concept of opacity will bear an increased importance as we move forward.

Interestingly though, it’s not just the weight of the stock that affects the opacity. Some envelope manufacturers use tinting on the inside of the envelope to increase opacity. While this is a clever trick, it also means that there is no simple correlation between paper weight and opacity levels. Additionally, we found it difficult to track down any charts that specify opacity percentages for different envelopes, either generally or for particular envelope manufacturers. As such, that good old ingredient “common sense” should also be considered as we look at opacity requirements.

In another upcoming blog post we will be looking into the “quiet zones” on machineable envelopes. Basically, these are reserved areas in which you cannot print. It goes a bit further than just what’s printed on the envelope though. Even though your design might comply with all of the quiet zones, if images from the contents are visible or partially visible through the envelopes and appear within particular quiet zones, the mailing pieces might be rejected. Again, because rejections can be pricey, the degree to which text and/or graphics show through the envelope must be considered when using this product.

Also, be aware that the envelope that works for one mailing may not work for another! Why? Well, imagine if you were to mail just a single letter inside a plain #10 envelope, where there was virtually no content bleed through the envelope. You might even send this to Canada Post for pre-testing and have a 100% acceptance rate.

This might lead us to believe that the envelope that was used would always be 100% compliant. However, what if another used the same envelope, but had a very dark graphic on one of the inserts? That’s a much more saturated area than plain letter text, and as such might bled through the envelope, even though the of the original letter did not. If this happens, there is a very good chance that the pieces might now be rejected, despite the fact that it is the same envelope.

In view of the foregoing, unless you are using envelopes that are entirely opaque, it is difficult to say that a given envelope will always be your best bet. I think that you have to look at each piece and work with Canada Post and your mail service provider to ensure that your combination of envelopes and contents meet the stated requirements.

I hope that the importance of opacity is now “clear”. All kidding aside, this is a very important factor to consider when using Machineable Presort. As we noted earlier, your layout and design might be 100% compliant, but the image of contents bleeding through the envelope could well cause your pieces to be rejected.

If you have any questions about the new Machineable Presorted Addressed Admail product, please feel free to contact us. We would be happy to discuss this exciting product with you.

Well, today we’ve added a new, extensive article to that collection, simply titled “Direct Mail Targeting“.

Today, smart marketers are looking at direct mail as less and less of a shotgun type approach to marketing. Instead, they employ it more like a sniper rifle, using a variety of different techniques to deliver a very specific message to a very specific and pre-determined audience. As noted in the new article:

By selecting the correct target audience, the benefits of direct marketing are immeasurable, not only saving you money (by not mailing to those with no interest), but also by optimizing your chances of success with those that do receive your materials.

It’s all about a spend less/make more kind of approach. Instead of focusing on concepts of “mass” or “bulk” – terms which used to permeate the industry – the emphasis has shifted more toward reaching those specific people who are most likely to actually make a purchase. For those who adopt this mentality, the key to success is, of course, being able to find these people so that you can actually mail to them.

That’s where targeting can become a real blessing. It’s also what the new article in the Knowledge Base focuses on.

The article basically points to the two primary groups that you want to focus on when targeting your direct mail. The first is your existing customers. There is often a great deal of untapped potential here for cross-selling different items that your customers may not even know you offer. Additionally, your existing customer base is a great place to go when you are launching a new product or service. Because they’ve purchased from you in the past, there is already an established relationship, which increases the chances of them giving your new offering a try.

The other group that the article points to are your prospects. These are individuals who have not purchased from you in the past, but who may have an interest in your products or services based on demographics such as age, location, income levels, interests or any number of other factors. The challenge, however, is being able to find these people, and our targeting article covers three key ways of doing this:

• List Rentals
• Canada Post’s GeoPost Plus System
• Business and Association Directories

Each of these methods is useful in its own way, depending on what you are trying to do. And, since we go into much greater detail in the actual targeting article, feel free to head over and have a read.

Of course, if you have any additional questions about targeting in direct mail, please don’t hesitate to contact us. We’d love to discuss the topic and help you get your message into the right hands.

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.