Don't let Royal Mail price rises put you off direct mail

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DMA guest blogger Peter Stockton is Mail Solutions Director at marketing services provider Communisis and has 25 years experience within the post and print industries. Peter was recently appointed to the Mailing Houses Council of the DMA, and has also been elected to the board of Royal Mail’s Strategic Mailing Partnership.

Much is being made in the media at the moment about the 40% price increase being levied by Royal Mail on the price of a first class stamp. While it’s been a hot topic for consumers, little has been mentioned in the media about the impact on business mail, including direct mail, at a time of severe economic austerity. As a knee-jerk reaction, many businesses might be tempted to simply direct their communications towards – frankly – cheaper channels. However, I for one would think that to be a short-sighted response to a valuable channel.

The price increase could indeed feel harmful to the industry, especially when marketing budgets are themselves being squeezed for every drop of value. However, as long as the benefits of the channel are recognised, the increased price tag attached might mean it is respected by those users who have misused it for so long.

Don’t ditch direct mail – it works

Direct mail works so well because it’s tangible. A well-executed piece should feel exclusive, intended for the recipient, and if it’s highly relevant it will be remembered and then used for its intended purpose.

Royal Mail’s own research tells us that direct mail is phenomenally engaging. Over the last year, 21.9m British adults have taken action as a result of receiving communication through their letterboxes. Of these, 8.3 million have kept this piece of mail for reference. Some 2.8 million have tried a new product or service. Furthermore, 3.7 million have passed the piece on to someone else. It has made 6.2 million people go online to order something and 7.3 million visit a store or pick something up in person.

According to fastMAP, nine out of 10 people open direct mail. It’s equal with email as most people’s favoured communication route nationwide. And alongside internet and search, it was one of the few channels to see an increase in spend in marketers’ budgets, as confirmed by the last IPA Bellwether report. Not to mention it’s one of the most targetable media through the growing amount of data generated by customers; something which will be music to budget holders’ ears given ROI and minimising wastage are at the forefront of many marketers’ minds right now.

Potential to become a premium DM channel

What we’re starting to see in modern direct mail is not only a more mature medium, but one which is flexible, easily integrated with other channels, and keen to play to its strengths. Direct mail is not just about communicating to the masses. Direct mail is about physical, tangible, personal, one-to-one communication. It’s not easy, and so it should no longer be seen as ‘cheap’. What mail has the potential to become is a premium personal channel. Marketing needs to stop the search for a ‘one size fits all’ channel solution. Given the vast variety of people’s preferences, there’s never going to be one channel which ticks all those boxes. What has emerged is a real toolbox where brands can apply the best tools for the job in hand, in combination, to get the job done right.

In terms of creating the right message and getting it to the right person at the right time, it’s a cliché, but direct mail delivers. Royal Mail research has proven that adding mail to the multimedia mix delivers an increased ROI. At the moment, that’s what budget holders are looking for. Furthermore, even a humble door drop has been proven to be more memorable than a TV or radio advert. The channel connects with people.

The postal price increases are large, and will hit companies in the pocket just when many around the UK could do with a break. However, with judicious planning many can still employ direct mail to good effect – especially as the risk of competing with other campaigns landing at the same time as yours will be arguably lessened.