Consumer insights – direct mail and people aged 35-44 September 2011 Author: MMC Sources: BMRB, Ebiquity, TGI The UK’s 8.6 million 35-44 year olds have high average incomes and are experiencing a wide range of life events. They are highly responsive to direct mail, but receive less mail than older age groups.

affluent, with growing families 35-44 year olds: affluent, with growing families There are currently 8.6 million 35-44 year olds in the UK; 17% of the adult population They are 61% more likely than the average UK adult to have a family income in excess of £50,000 p.a. and 73% more likely to have a family income in excess of of £75,000 23% of 35-44 year olds expect to get married in the coming year and 21% expect to purchase or sell a house or flat; 21% expect the birth of their first child and 28% expect the birth of their second child 20% expect a child to go to university in the coming year and 23% will make major home improvements Source: TGI 2011 Q2 (January-December 2010)

Media consumption by people aged 35 to 44 Top media quintiles* (index) Adults aged 35-44 are 18% more likely than the UK average to be heavy responders to direct mail They are also heavy users of the internet, outdoor media and radio *‘Top media quintile = highest responders to direct mail and heaviest users of other media Source: TGI 2011 Q2 (January-December 2010)

35-44 year olds share of all mailings All mailings sent by age, Jan 2010-Dec 2010 (%) 35-44 year olds received 17% of all mailings sent in 2010 This is a lower proportion of mailings than that received by older age groups Source: Ebiquity January-December 2010

Top ten types of mail sent to 35-44 year olds Number of mailings sent to 35-44 year olds by sub-market Mail Order, General Insurance and Charities mailings are the most common types sent to people in the 35- 44 age group UK adults aged 35-44 received 50.7 million Mail Order mailings and 38.5 million General Insurance mailings in 2010 50.7m 38.5m 27.2m 12.8m 11.6m 11.1m 8.5m 7.5m 6.8m 6.8m Source: Ebiquity January– December 2010

35 to 44 year olds welcome direct mail Attitude to mail – agree with statements (%) Response % agree Index I tend to open all of my post 79% 94 I like receiving money-off vouchers, special offers or coupons 76% 102 I welcome mail if it is meant to reward my loyalty 72% 106 I welcome mail if it is meant to give me useful information I welcome receiving mail from companies I'm already a customer of 61% 100 I like being informed about special or promotional offers by post 53% 104 When researching a purchase online, I'd like the option of requesting more information by post 52% I welcome mail telling me about new and improved service/better offers 95 I often keep printed brochures/leaflets to read at my leisure 42% 92 79% of 35-44 year olds open all their post 76% like receiving money-off vouchers and special offers 72% welcome mail that rewards their loyalty or that gives them useful information Source: BMRB 2010

Reasons to open mail People aged 35 to 44; reasons to open mail (%) Response % agree Index If I am the customer of the sender 91% 101 If it contains a coupon 80% If it's something I have requested 76% 98 If I’m already considering buying the type of product 74% 99 If it contains a magazine 67% 97 If it contains a free sample 66% 96 If it contains a catalogue 56% If it contains an interactive DVD 49% If it contains something you can taste 46% 105 If it makes a sound (for example music) 40% 94 If it has a smell (for example the scent of a product) 35-44 year olds are motivated by mailings from companies that they already a customer of, and by mailings that include coupons 74% of 35-44 year olds will open mail if they are already considering buying that kind of product Source: BMRB 2010

Reasons to not open mail People aged 35 to 44 (%) Response % agree Index If I've seen the same information before 65% 108 If it's addressed to 'the occupier' 56% 113 If it is from a company I have heard of but don't deal with 46% 102 If my name is spelt incorrectly 28% 85 If I don't know who it is from 26% 84 If I've had too much mail on that day 22% 91 35-44 year olds are not motivated to open mail if they have seen the same information before or if it’s addressed to ‘the occupier’ Source: BMRB Royal Mail 2009 Q1

35 to 44 year olds redeem vouchers Use of vouchers in past 12 months by people aged 35 - 44 (000s) 3.9m adults aged 35-44 always use money-off coupons and vouchers 2.1m used a voucher or coupon sent to them by direct mail in the last 12 months Source: TGI 2011 Q2 (January-December 2010)

Response to direct mail by 35-44 year olds Traditional ‘response rates’ are only part of the story: significant value is delivered beyond the initial interaction 46% of 35-44 year olds have done something in the past 12 months as a result of the direct mail they’ve received Bought something 29% bought or ordered something 8% made an enquiry or requested additional information 24% used a coupon 7% tried a new product or service 13% visited a store 18% kept it for later use 8% passed it on 6% paid more attention to ad Asked for something Did something Source: TGI 2011 Q2 (January-December 2010)

Response mechanic Response to direct mail received in the past 12 months by people aged 35 to 44 (000s) More than 1.5 million adults aged 35-44 visited a shop after receiving direct mail in the last 12 months and nearly 1.3 million responded via the internet 35-44 year olds are 25% more likely to follow up via the internet and 22% are more likely to visit a shop than the average UK adult (Index 122) (Index 125) (Index 79) (Index 75) (Index 97) (Index 121) Source: TGI 2011 Q2 (January-December 2010)

35-44 year old consumers are … likely to have high family incomes and growing families; they are a prime target audience for a wide range of consumer goods and services highly responsive to direct mail, though they receive less mail than older age groups Motivated by money off coupons and vouchers, and likely to make use of these Highly likely to respond to mail by visiting a store or via the internet

Appendix Details of research surveys and terms used 13 BMRB Royal Mail uses BMRB to pose additional questions to BMRB TGI respondents. A nationally representative sample of 2,000 respondents aged 16+ are drawn from the latest rolling TGI and re-contacted using CATI (Computer Assisted Telephone Interviewing). Their responses are then merged with their TGI data. www.bmrb.co.uk Ebiquity Plc A single source survey providing fast and accurate estimates of media expenditure in the UK across press, TV, radio, internet (including paid search), outdoor, cinema, direct mail and door drops. Ebiquity also provide a continuous monitor of consumers’ attitudes to direct mail. www.ebiquity.com fast.MAP fast.MAP is an online, real-time research company with its roots in direct marketing. It produces fast, accurate, cost-effective insights for marketing clients and agencies. Its constantly refreshed and tested panel of 30,000 profiled UK adults accurately reflects national opinion. Geo-demographic profiling tools then deliver lifestyle information on specific groups of respondents. www.fastmap.com Mintel International Group Mintel is an independent award-winning provider of world-leading market intelligence, delivering robust information, analysis and critical recommendations. Mintel's trusted portfolio of proprietary industry solutions and products has been supporting high profile clients in key sectors such as FMCG, financial services, media, retail, leisure and education for over 38 years. With office locations in London, Chicago, New York, Shanghai, Tokyo and Sydney our global presence continues to grow. www.mintel.com Nielsen The Nielsen Company is the global leader in multinational media research and analysis. It is active in 40 markets, offering TV and radio audience measurement, advertising information services, print readership and customised research services. www.uk.nielsen.com Royal Mail Consumer Panel TNS has run a Consumer Panel for Royal Mail since 1985, measuring all consumer activity in relation to Royal Mail including full details of all mail received and sent. Information collected from panel members’ diaries is used to estimate consumer mail volumes for the UK. The panel is based on a representative sample of 1,000 households in the UK (from a live panel of 1,350 households). www.tnsglobal.com TGI TGI is a continuous, single-source survey of consumer demographics, usage habits, lifestyles, media exposure and attitudes. Established in 1969, the survey provides accurate and independent marketing information on GB adults aged 15+. Annual sample size 24,000. Published by BMRB. www.bmrb-tgi.co.uk Quintile Media quintiles are created by separating media consumers into equal fifths from the heaviest to the lightest 20% in terms of their consumption of each medium. 13

www.mmc.co.uk The Mail Media Centre To find out more about the information in this presentation: Call us on: Email us at: 0800 917 0640 info@mmc.co.uk Visit our website at: Visit our Infobank at: www.mmc.co.uk The Mail Media Centre 7-11 Stukeley Street London WC1V 7AB Or connect with us via social media: Mail Media Centre, the MMC logo and the Royal Mail cruciform are all trademarks of the Royal Mail Group Ltd. How consumers follow up on the mail they receive © Royal Mail Group Ltd 2010. All rights reserved.   Royal Mail Group is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London EC4Y 0HQ. 14