TGI: Direct Mail

As direct mail continues to extend its size and reach in the digital age, the threat of a national postal strike evokes an angry response from marketers and mail-order specialists, according to TGI…

Much has been made of the threat to small businesses of a national postal strike. On top of the problem of delayed dispatch of goods and receipt of payment, disruption to the in-flow of direct mail might further undermine competitiveness.

Latest TGI and Business Culture Index data shows that 71% of GB adults receive direct mail (the same figure as in 2008) and 46% responded in some capacity. Responses range from buying or ordering something (30% of recipients) to paying more attention to an advert (5%). Those of us who receive DM get on average between four and five items in a typical week. Only 2% of adults receive 20 or more items.

However, there is something of a north-south divide in terms of both receipt and response to DM. More than three-quarters of those living in the South East receive direct mail compared to only two-thirds of those in the North of England. Two-thirds of recipients in the South East respond in some way, compared to 61% in the North West.

The success of direct mail depends on accurate targeting. Certain groups of people are much more likely than others to have the time and the inclination to respond. For example, those who bought or ordered something three or more times in the last year in response to DM are 30% more likely to be aged 15-24 and 25% more likely to be aged 65 or above. They are more likely to be women and twice as likely to be in social grade A – Affluent and self-assured, and style is important to this group.  They are also 40% more likely to enjoy standing out from the crowd and 20% more likely to try to keep up with the latest fashions.

Mail-order catalogues remain big business despite the growth of online shopping. More than a third of adults made at least one purchase in this way in the past 12 months (26% of men and 44% of women). Half of those who bought from a mail-order catalogue in the last 12 months placed their order online, and this is now the most popular way of ordering. The implication is that many of those who could shop online directly still enjoy the experience of receiving and looking through a seasonal paper catalogue, which in turn serves to prompt (and perhaps justify) a purchase.

Direct mail is also important in a B2B context. Latest data from the BCI study of small and medium-sized enterprises show that those with ambitious growth targets are 25% more likely to use direct mail for getting business ideas, checking out new products and services, and marketing their own products or services. Certain sectors are particularly reliant on DM. Employees and managers of SMEs in the manufacturing sector are twice as likely as their peers to use DM to source business ideas, while those involved in health care are 80% more likely.

So, although for some the postal strike might offer a break from badly-targeted ‘junk mail’, for many businesses and consumers disruption will mean missing out on offers and information of real relevance.