Woolroom utilisation of abandon basket Direct Mail generates strong Return on Investment

Woolroom Conversion and sales increase using Paperplanes Direct Mail

Context

Woolroom is an environmentally friendly, UK based business which offers high quality wool products for bedding, homeware and more. Their mission is to re-educate customers on the numerous benefits of wool, and expanding their online market to make their sustainable products available to everyone.

The company teamed up with Paperplanes to see if personalised direct mail could increase sales and drive more purchases.

Solution

Woolroom partnered with Paperplanes to identify customers who abandoned their basket before completing the purchase and encourage existing ones to make new purchases. To do so, customer online activity was monitored to gain insights on their behaviour.

Targeted customers were presented with relevant, personalised, physical media with their abandoned or recommended products, and extra incentives to visit the site, which were A/B tested to refine the strategy.

Results

  • 8.1% recovery rate of recently abandoned baskets
  • Customers are twice as likely to return to Woolroom after mailing
  • Mailed customers visit twice as many pages and stay 3 times longer than their non–mail counterparts.
  • Repeat purchase propensity: 10% of abandon customers making more than one purchase since mailing
  • More customers come direct to site as a result of Paperplanes DM.

history of direct mail

A brief history of Direct Mail Through the ages

INTRO TO DIRECT MAIL HISTORY

Direct Mail has become one of the most powerful marketing channels, providing high conversion rates along with an impressive Return on Investment. However, it is crucial for it to be effectively integrated into a digital marketing strategy to deliver the best possible results. It is surprising how, in the digital era we are living in, one of the oldest (if not the oldest) channels is still able to deliver such astonishing results. In order to understand the reasons behind this we have to dig through the history of Direct Mail and how this channel has managed to evolve to become what it is today.

EARLY DIRECT MAIL HISTORY

The first example of Direct Mail Marketing can be located around 1000 B.C., when an Egyptian landowner wrote an advertisement on a piece of papyrus offering a gold reward in return for a runaway slave. Today, this is displayed at the British Museum. Other ancient cultures experimented with Direct Mail, such as the Babylonians, who used stone tablets to advertise their products when visiting other towns.

However, it was only after the invention of the printing press in 1440 by Johannes Gutenberg that Direct Mail was able to spread across Europe. And after 1480 with William Caxton, with his printing press set up in Westminster Abbey, the channel became available to more and more people.

Nonetheless, many historians consider the official birth of Direct Mail Marketing to be in 1872 when Montgomery Ward launched his mail business with a one-page catalogue. Richard Warren Sears followed soon after in the 1880s, when he started mailing flyers to small and rural towns to advertise watches. The actions of these two men revolutionised the purchase of goods, allowing consumers far from the big cities to shop products at a cheaper price, having reduced the power of local shop owners who were able to charge very high markups.

The two pioneers had great success, Ward reached $1 million annual sales in 1888 and Sears’ 1896 Catalogue consisting of more than 500 pages was present in 300 000 homes.

After 1970 colours played a key role in the design of advertisements, allowing marketers to appeal to the emotion of the audience. Furthermore, the change in lifestyles was a crucial ingredient for the growth of the channel. With increased focus on work meaning consumers had less free time to go shopping in the daytime it made more sense to reach consumers at home, allowing them to peruse and mail order in their own free time.

Direct Mail's role in the Marketing industry gained even more importance in the second half of the 1900s, with some key products that were successfully advertised mainly through mail marketing, such as store loyalty card programmes, computers and credit cards. Although Direct Mail Marketing had established itself as a very successful channel, after 1990, with the mass adoption of computers and the Internet, email and digital marketing were on top of every marketer’s mind and direct mail seemed to have exhausted its power. In the first years digital marketing was able to deliver stunning results, with record-breaking Return on Investment and conversion rates. However, after a few years email inboxes and website pages became overcrowded with non-personalised ads and the magical effect started to vanish.

After the 2010s marketers started to realise that the direct mail and the digital marketing channels could only work well if integrated properly in a strategy.

HISTORY OF DIRECT MAIL: RENAISSANCE 

Personalised Direct mail could be used to cut through the noise of the digital ads, reaching customers at home, where they felt safe and valued by the company that took such a great effort to be there at the right time and with a personalised piece of mail. Here at Paperplanes we have taken the evolution of direct mail one step further through successfully combining the interactions and behaviour created on your website with something meaningful and physical in post to drive an action. There is plenty more life in the old dog yet.

FINAL THOUGHTS

It is surprising to see how the Direct Mail channel survived 3000 years of history and still be able to deliver amazing results. But, to expect great return on investment and conversion rates, it is essential to integrate this channel within a digital marketing strategy.

At Paperplanes, we manage to do this, thanks to our machine learning algorithm, which can easily be implemented on your company’s website. This is able to track customers who browse your products but don’t go through with the purchase and automatically trigger a personalised piece of programmatic mail directly to their doorstep.

Do you want to learn more about how we do this? Contact us for a free demo here (Click Here)


Importance of envelope Direct Mail Marketing

The importance of the outer envelope in direct mail marketing

The importance of envelope direct mail marketing.

When designing a direct mail strategy, you’ll probably find yourself focusing mainly on the content of the letter as opposed to the envelope, seeing the latter simply as a ‘vessel’ to deliver your important message.

Yet, although it may seem surprising, the outer envelope is just as important as the message inside it.

At Paperplanes we make sure to take care of every component of the mail we send, including the often forgotten outer envelope.

Here’s why.

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1. The envelope is the headline of your direct mail

The envelope is to direct mail what a subject line  is to an email: it is the first thing the customers will see, and it has the important role of catching their attention and leading them to engage with the content inside it. It can make or break the chance of the letter being opened.

 

The importance of catching the customer’s attention is summarised by the 3:33 rule, a time proven formula that explains that the letter has:

3 seconds to catch the reader’s attention among the rest of the mail

• 30 seconds to interest the reader enough to get the envelope opened

• 3 minutes for the content of the mail to be read

The rule shows how time is a crucial element that plays a role in your customer’s experience with mail. Because the time to get their attention is limited, the outer envelope impact has to be immediate, clear, and engaging.

 

2. Personalisation increases brand awareness 

Studies reveal that 60% of people prefer purchasing from brands they are familiar with. Direct mail marketing is a very powerful, cost-effective way to improve customers’ familiarity with who you are, and the envelope is where it starts.

An envelope personalised to include the brand’s name means that the customer will receive a piece of mail which will most likely lie around their house for some time, and remind them of you every time they look at it, whether intentionally or not.

This builds a relationship between the customer and your brand, which will result in better conversion rates, and increase the probability they will come back for more purchases.

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Envelope for NBA direct mail campaign

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So...Why Paperplanes?

A lot of marketers underestimate the importance of the outer envelope, instead opting to send blank, non-branded envelopes on the basis that it will encourage the customer to open if they don’t know what it is. These are the kinds of letters that end up in the trash before even being opened. And if envelopes are not opened, all the efforts put into their content inside them goes to waste.

At Paperplanes, instead, we know the added value of personalisation, and use innovative envelope designs for all of our direct mail campaigns. And the effects on costumeThe effects this can have on customer behaviour is evident: our engagement rates and conversions are higher than industry average (23% return to website and 12% conversion across 2020)

Here’s how we do it:

  • We grant total flexibility on envelope designs. Differently from most printing services, we have no limitation to ink coverage or minimum volume expectations; so your campaign can be built around customer behaviour.
  • Maximum personalisation. We can personalise allcontent on envelopes based on the specific customer, from their name to actual products and categories we know they are interested in thanks to our data.
  • We prioritise the recognition of your brand: colours, fonts and text are personalised to remind the costumer of you.
  • We conduct A/B tests to verify the effect of different designs on conversion rates, and refine our strategy accordingly.Envelope for SIMBA direct mail campaign

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Final thoughts

Personalising the outer envelope creates great opportunities for a Direct Marketing campaign and increases the likelihood of customer conversion, and brand awareness. Don’t miss out on these opportunities, contact Paperplanes to take your digital marketing strategy to the next level through integrating post.

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References:

  1. https://www.worcesterenvelope.com/do-direct-mail-envelopes-really-matter/
  2. https://valtim.com/blog/why-your-outer-envelope-matters-in-direct-mail-campaigns/
  3. https://www.roadrunnermailing.com/mailing-information-postal-regulations/envelopes/item/77-the-unsung-hero-of-direct-mail-your-outer-envelope

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How Direct Mail was affected by the pandemic

How the Covid-19 pandemic affected Direct Mail

The pandemic has changed almost everything: businesses had to rethink and rebuild their marketing strategies to survive. The rules of engagement have changed dramatically in a very short time, and our reliance on digital transformation increased overnight as most countries went into lockdown.
The challenge for businesses has become how can we stand out considering the infinite number of digital advertisements every consumer received in a post-covid world?
So how can marketers achieve good results when facing such an intense competition for awareness on digital channels? The answer was simple: going back to physical. And what is more physical than a piece of mail delivered to the customer’s doorstep?
The integration of the Direct Mail channel into an online marketing strategy has allowed many businesses to achieve results that were unthinkable through just using a digital strategy. The average response rate for direct mail during 2020 has been 4.9%, and this is the highest score since 2003!*(1)
And the thing that surprises the most is that it all happened during a pandemic.
So, why should you consider Direct Mail as a marketing channel in a post-pandemic world?


The importance of Home


Everyone was forced to stay at home in the past year and, as a result, the value of what we receive in our mailbox has increased significantly.
Whilst the number of messages, ads and emails people receive on their devices can feel intrusive, impersonalised, and can sometimes lead to fatigue, physical mail is often welcomed in our home with a positive reaction.
The thought of someone investing effort, time, and money to deliver mail to our door, makes us more likely to open and read mail giving the channel far more attention compared to digital alternatives.
Research shows that at the end of 2020 mail engagement was higher than ever at 96%.*(2)
Furthermore, 40% of people agree or strongly agree that moving into lockdown made them realise how important mail was for them.*(2)
These numbers are confirmed by many Paperplanes’ campaigns that have been live throughout the pandemic. To give an example, Paperplanes and Iclothing partnered to see if programmatic and personalised direct mail could help them recover abandoned baskets. The results were impressive: 14% of mailed customer baskets were recovered, with a 50% sales uplift resulting from the mailing.

Workspaces and Lifestyles changes


Mail is proving to be a very effective channel, as working, and living styles have changed, we are now spending more time at home than ever.
This trend doesn’t look like it will change anytime soon; homeworking has shown its benefits and many companies are planning to reduce the number of hours spent in the office. According to McKinsey, 20 to 25 percent of the workforces in advanced countries could work from home between 3 and 5 days a week.*(3)
This shows that even after Covid, Direct mail will still be effective as people will continue to spend a considerable amount of time at home.
Being at home for such a considerable amount of time has convinced many people to pursue new hobbies such as gardening. YouGarden.com, an online garden centre, benefitted from this situation and thanks to Paperplanes’ support in their abandoned basket strategy managed to hit a 17% conversion rate for mailed customers, which was much higher than any other form of re-targeting strategy deployed by them.

Success Key Factors


One of the factors that has made direct mail one of the most effective marketing channels is that receiving it provides a multi-sensory response, engaging touch and vision and in some cases also sound and taste.*(4) Another element that allowed this channel to be so successful has been the possibility to integrate personalisation. When working with BigDug, a company specialised in storage products, Paperplanes managed to trigger automated and personalised DM to customers who had been browsing BigDug’s website but had not completed the purchase (thanks to our machine learning algorithm). The results were outstanding compared to the control group who did not include personalisation in the mailings: an almost 50% uplift in conversion rate was registered as a result of the abandoned basket campaign.

In these difficult times, when companies struggle to remain profitable, it is crucial to build a marketing strategy that can bring great Return on Investment (ROI); in fact, Direct Mail has proven to provide a higher return compared to other channels.*(5) To give an example, when working with Paperplanes, LoveYourself, one of the leading food subscription businesses, managed to achieve a £18 to £1 ROI for the abandoned basket campaign and returns as high as ten times the marketing spend for the reactivation campaign.

Mail is considered to be the optimal channel to utilise when trying to communicate something important. For example, during the pandemic 72% of people felt that mail was the right choice for the Government to communicate with citizens. And 63% thought it showed they were taking Covid-19 seriously.*(2)
Further research tells us that, when received, a piece of mail is difficult to forget, indeed, 80% remember receiving a government mailing and 58% recall the “Boris Letter”.*(2)

Final Thoughts


We have seen the impact that Direct Mail can have on increasing conversion rates and customer engagement as well as website traffic which became even more important during a pandemic. However for a campaign to be truly successful it needs to be integrated with the rest of the marketing strategy. Moreover, the real strength of this channel is in the way it allows you personalise and reach your customers directly into their homes. And in order to get the best results, you need to be able to target the right customers and appeal to them at the right time. Want to know how to do this in the right way? Contact us for a for a free demo or just to chat here 


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Sources

(1)https://www.fundera.com/resources/direct-mail-statistics

(2)https://www.marketreach.co.uk/downloads/mail-matters-more-than-ever-s

(3)https://www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-after-covid-19#

(4)https://www.brandunited.com/article/why-use-direct-mail-during-covid-19/
(5)https://valassis.com/blog/direct-mail-is-having-a-moment-seize-it/


How to Integrate Direct Mail into your Customer’s Journey

How to Effectively Integrate Direct Mail into your Customer Journey

Direct mail marketing is increasingly becoming recognised by marketers as an integral component to a well-rounded marketing strategy. A recent study showed that 84% of marketers believed direct mail improves multichannel campaign performance which outlines the effectiveness. Further to this, direct mail can influence purchase intent, it is a trusted channel with 56% of people believing it to be the most trustworthy form of marketing*, also boasting a 35% higher recall rate than digital* and increasing site traffic; with Paperplanes seeing in 2021 a 23% average return rate to the website after mailing.

Direct mail is clearly an effective marketing tool that goes beyond just a top of the funnel strategy with many brands utilising it to improve customer experience at multiple stages of the conversion funnel. While a customer’s journey will vary dependant on the business, the common goal is to drive customers towards conversion. With that in mind, this blog post will show you how to integrate direct mail marketing into each stage of your customer’s journey.


The Awareness Stage


This stage is where prospects are aware they need a product or service in their lives and decide to take action to fulfil this need. They may have heard of your brand but not know much about it or how to proceed, or, your company may be unknown to them. Either way, your objective at this stage is to build awareness of your brand or service.

One reason why direct mail is successful in getting your business name out there is it’s ability to stand out. Postal marketing is not an intrusive channel demanding immediate attention in the same way some forms of digital marketing can be. Consequently, when you’re trying to stand out from the crowd, direct mail can help you achieve just that.

Tips for sending mail in the awareness stage:


1) Drive prospects to your website

You want to push prospects to the next stage of the buyer’s journey, the consideration stage, so driving people to your website is key to this process. Adding a QR code, special offer or a personalised URL might be an easy way to incentivise people to do that; however, ensuring some sort of personalised, physical prompt that lands with customers to trigger a visit is more important. Research shows that an average of 64% of people visit a website as a result of receiving mail and 47% visit a physical store.

When working with Gousto, a supplier of recipe boxes with ready-measured, fresh ingredients and easy-to-follow recipes, the use of QR codes taking customers directly to the website or App was found to be engaged with more than the creative with a discount variant. Sending mail versus not sending mail was by far the most important factor in driving follow up visits.

2) Copy is key: Don’t Be Too Pushy

To avoid scaring prospects away, you want to stick to just providing consumers with the basics: what you have to offer, who you are and what makes you special. Remember to also include a call to action (CTA) such as “find out more” so that they can move on to the next stage of the journey.

3) Don’t bombard customers

Paperplanes limits sends to one in every 30 days but we land right at the time to inform a sales decision. Don’t spam customers but message them at the right time that will help inform a sale (browsing products, basket, and encouraging a second purchase).

The Consideration Stage


In this stage, prospects have identified their problem and are learning about potential solutions. In order for buyers to consider you as a solution, you need to position yourself as the best answer to their issue by showing that you understand their unique situation.

Tips for sending mail in the consideration stage:


1) Make it Personal

We cannot emphasise enough the importance of personalisation in marketing and in the consideration stage it is particularly important to make consumers feel special and appreciated, showing that you’re thankful for their interest in your business. Research from the Journal of Brain Research, has shown your brain’s activity spikes when you hear your name, so it is important to include it in your Paperplanes mail campaigns. On that basis, think how much more effective marketing can be by applying more advanced methods such as featuring customer’s online activity: abandoned baskets, previously viewed pages and recommendations, personalisation is a must if you want consumers to move to the next stage and consider your brand as a solution to their problem.

A Premium Online furnishing brand who partnered with Paperplanes, benefited extremely well from relevant products being featured in the mailing. There was a 33.3% mailed conversion (vs 11%) when featuring key added value items such as duvets and bath towels.

2) Assume prospects don’t know anything about you

This is where you need to inform prospects with relevant and specific information about how you can help them with their problem. For example, if a consumer’s problem is that they’re looking for ethically-sourced coffee, tell them why they should choose your brand. Paperplanes introduced variable product recommendations based on what customers had browsed before dropping out of the subscription or buying process whilst working with PACT Coffee. The campaign brought 40% more customers back to PACT as a result.

The Decision Stage


This is when buyers are well-equipped with relevant information to decide the best solution for their problem based on price, quality, trust and style. At this point, you can’t fall behind the competition so you have to position yourself as the superior option. Eliminate any doubt consumers may have about choosing you by showing that their needs will be met and even exceeded.

Tips for sending mail in the decision stage:


1) Include Social Proof

Include icons, logos, awards, certification, and especially reviews- 56% of consumers read at least four reviews before buying a product. This is the time to establish yourself as trustworthy and credible. You can also include a QR code that takes customers to your online reviews with research showing that product pages with customer reviews experience 3.5 times more conversions than those without.

When working with OTTY, the creative variant with trust pilot reviews outperformed the variant containing a discount offer, showing that an incentive is not always required.

2) Pitch your Best Offer

If incentives are to be provided, start with a strong offer that cannot be found elsewhere on the web or on the site to entice the customer back. Include exclusive promotions, coupons and limited-time offers, anything to make your business as appalling as possible. Even better, personalise your offers according to consumers’ online activity.

For example, Paperplanes featured customer’s browsed products from award-winning online drinks retailer, 31Dover, on the creative and offered free delivery on the selected items, obtaining a 14% conversion rate.

After the Decision Stage


Remember retaining existing customers is more cost-effective than acquiring new ones so you want to make sure you have a customer retention strategy in place. Rewarding loyalty will mean customers choose you the next time they are in the market.

Tips for sending mail in the post-decision stage:


1) Say Thank You

Showing customers that you are thankful for them is a great way to encourage them to come back for a second purchase and to think of your brand the next time they need a related service or product. It might be important to wait some time once they’ve made the first purchase as they have just solved their problem, however, A/B testing on cadence will allow you to validate this. You want to target them when they’re likely to have this problem again and as a reminder that your brand is here to help.

When working with us, ButterflyTwists, Paperplanes sent out a thank you campaign with a special offer. 11.3% of Thank You customers made a second purchase and mailed bounce rates were 4 times less than non-mail counterparts.

2) Make Them Feel Remembered

You don’t want customers to feel like they are just a number, people like to feel special so it is important to show the human side of your business here.

One way to do this is to send a birthday campaign. Scandanavian male grooming company, Gents.se worked with Paperplanes to identify birthdays from previous customers and offered them special discounts to encourage incremental purchase and honour their loyalty.

To Conclude


No matter where your prospect is in their buyer’s journey, Paperplanes can help you effectively and successfully target them by connecting with customers in ways that other channels can’t. Responsive direct mail benefits from its unique and physical appeal and provides an additional channel to digital for you to reach consumers in a non-intrusive manner. People appreciate mail with 70% of people thinking better of companies that send it.

Want to know more about how to personalise direct mail campaigns to increase your chance of getting prospects to move from the consideration to the decision stage? See our free guide to personalisation and direct mail marketing: https://paperplanes.co.uk/a-guide-to-personalisation-and-direct-mail/


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A Free Guide to Personalisation and Direct Mail

A Guide to Personalisation and Direct Mail- how personalisation can improve ROI by 300%

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    Guide to Direct Mail White Paper

    A Simple Guide to Direct Mail

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      OTTY: 4.5% incremental conversion in sales created

      With the Help of Programmatic Direct Mail, OTTY saw average basket value for mailed group 20% higher than a standard completed basket.


      The Context


      OTTY offers customers high-quality mattresses and sleeping accessories to aid a good nights sleep. The OTTY Original Hybrid includes five innovative layers.

      OTTY were interested to see if the utilisation of direct mail as part of their customer contact strategy could drive any incremental sales. We were also interested to see if a free shipping incentive would drive a stronger performance than creative without an offer but focused on social proofing (ratings and reviews).

      The Action


      Paperplanes and OTTY partnered to identify the right creative and technical strategy to generate the incremental sales required. What started as an A/B test on abandoned basket, rolled into recommendations for incentivised second purchase to grow customers’ overall basket spend and a last chance follow up mailing to stimulate even stronger sales.

      The Results


      4.5% incremental conversion in sales created

      • Browsers 30% more likely to return to site after mailing
      • Average basket value for mailed group 20% higher than a standard completed basket.
      • ROI 7 times stronger than initial investment for abandoned basket even before further methods for optimisation explored.
      • Copy makes a difference! The creative with trust pilot reviews and softer tone performed better than discount variant with a more direct reference to items abandoned.

      Testimonial


      “I was interested to see if direct mail could actually measure up against our advanced social media and paid search strategies. Having seen the way Paperplanes operates and the results they generated I now have confidence that the postal channel can make a difference. Especially when creative is optimised utilising the insight Paperplanes provides.”

      Head of Marketing, OTTY Sleep

      I now have confidence that the postal channel can make a difference.


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      Direct Mail for 2021- in 2020 Paperplanes saw a 23% average conversion rate

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        DIRECT MAIL FOR Black Friday-3

        Should You Consider Direct Mail for Black Friday 2021?

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