HOW TO BUILD YOUR BRAND WITH MAIL

Inform, Instruct, Get news FRAMING THE COMPONENTS OF VALUED MAIL: A TAXONOMY KNOW Inform, Instruct, Get news THINK Understand, Remember Assess, Reaffirm FEEL Reassurance, Pleasure, Interest, Appreciation, Concern DO Spend, Plan, Join, Experience, Keep, Advocate From the qualitative research, we developed a ’ taxonomy ’ – a hierarchical code or classification that helped us comprehend a larger concept. We identified 4 key areas – and developed the language we needed to ask appropriate questions of our respondents. ‘Know’ The ‘know’ component refers to the practical, rational information that respondents explicitly took out of the item. Typically these are facts, but they also include instructions – such as how, or when, to do something. ‘Think’ The ‘think’ component is comprised of the ways we process this information in the context of our own world. Information is considered, compared with what we previously knew, and as a result, our beliefs are reinforced or we ‘change our mind.’ ‘Feel’ The ‘feel’ components we found most useful for this research were generally collections rather than unique or ‘pure’ emotions. Our experience is that when describing what they feel (or felt), people use terminology that illustrates the complexity of real life.   ‘Do’ The ‘do’ components were as described by our consumers in the qualitative research. Some were actions that were quite clearly what we would describe as ‘direct response’, others may drive actions in the future. The following pages look at the key findings under each section.

VALUED MAIL HAS SOMETHING IMPORTANT TO SAY KNOW IMPORTANT TO SAY Q. What was it that this mail from … told you that you found useful and/or interesting? Know In short, valued mail has a point: it has something new and/or important to say that is relevant to the recipient.   That might be a simple fact: how much money or how many loyalty points you have in your account, or the price reduction on a particular product. But it could also be a simple set of instructions: a clear, easy-to-understand, guide like an instruction manual that tells you how or when to do something. From the verbatims… ‘Interesting, because it was a confirmation that the holiday we requested was available’ ‘The vouchers were for money off coupons and I was going shopping to Morrison’s soon‘ ‘Really simple, easy bit of mail, don’t get loads of Ts&Cs or five bits of paper telling me different things. Just says your card’s expired, here’s your new card. Relief not having to do something – an extra chore’ ‘It offered reduced subscription for six months of an 18-month contract, which was far cheaper than our current supplier‘ The point is that the information is new and/or important, and relevant to them. Base: 3,000. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

VALUED MAIL MAKES PEOPLE THINK Q. And what did this mail from … make you think? Think Direct mail is known to be a medium that can drive response, and is usually measured as such. To get that response, the recipient has to ‘change’ their perceptions in some way. It may be as simple as ‘I wanted that product but didn’t think I could afford it – but now I see that it is cheaper during this sale’. But this research shows that these perceptual changes can be deeper and richer than marketers might have assumed. A valued piece of mail can drive salience (awareness and relevance), create consideration, and even provide comprehension of what a product or service can really do for them; important concepts if a person is going to act immediately. It can also create other changes that have longer term effects, such as improving the overall perception of a company regarding the way it feels about its customers. Our Private Life of Mail research told us about the subconscious effects that mail could have. Together with this research, it suggests that mail has a larger role than we might have suspected for brand-building. At the same time, there are indications it can do this while also driving more sales-focused behaviours. Base: 3,000. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

92% Q. How did this mail from … make you feel when you received it? VALUED MAIL MAKES FEEL PEOPLE FEEL 92% …of respondents felt something as a result of receiving their valued piece of mail Q. How did this mail from … make you feel when you received it? Feel During the last century there were some in marketing who believed that the printed word was the poor relation in the media world in terms of driving emotions. Without the movement of video or tonality of radio, it was seen by some as a relatively staid media, more useful for delivering fact than inspiring desire. We asked respondents what their valued piece of mail made them feel, and offered them a range of simple, ‘pure’ emotions such as happiness, and more complex feelings, made up of a number of emotions. The fact that more than 9 out of 10 respondents indicated that they felt something should put paid to this theory once and for all. Base: 3,000. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

VALUED MAIL MAKES PEOPLE THINK DIFFERENT FEELINGS Q. How did this mail from … make you feel when you received it? Feel When we asked consumers about what their valued piece of mail made them feel, we presented 15 different words or phrases and allowed them to choose as many as they liked. The seven above were chosen by the largest number of respondents. It is clear that the statement ‘better/more informed’ represents the essence of the role valued mail plays for most consumers. We can deduce that the emotions that underlie feeling ‘better informed’ include reassurance, belonging, confidence, respect and/or relief. It is clear that telling people something may be rational but if it is also relevant, it creates a rich emotional landscape.   This may seem counterintuitive, but in an age where we are bombarded with messages, the ability to ‘catch’ and process relevant, personal information and consider it can be emotionally rewarding. An item of mail that simply, clearly and effectively tells its recipient what they need to know helps them sort the wheat from the chaff. By doing so it provides two benefits: the opportunity to act quickly and effectively; two, no wasted effort taking in and considering irrelevant material. But while this feeling may top the list, it was seldom if ever the only feeling recorded by a respondent, as the chart on the next page shows. Base: 3,000. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

44% 30% 20% VALUED MAIL INSPIRES MANY FEELINGS Had 1- 4 feelings Because the question allowed for multiple responses, we looked at two trends: the number of feelings associated with any item, and the relationship between the feelings and the actions taken.   Our analysis indicated that valued mail does not always inspire a wide number of associated feelings. More than half of items had four or fewer feelings’ statements ticked. But it was also the case that some items triggered a much wider range of feelings. You can see in the chart that 20% of the items assessed had between 9 and 15 feelings statements associated with them. So mail can create a very rich emotional landscape. Base: 3,000. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

VALUED MAIL THAT MAKES PEOPLE FEEL SOMETHING MAKES THEM DO SOMETHING In our analysis we explored the relationship between what recipients said valued mail told them, what it made them think and feel and ultimately what they did. What became clear is that people who recorded feeling something were more likely to act than those who did not. This correlation is quite clear: mail that makes you feel something makes you do something. And conversely, those who felt nothing – a total of 8% of our sample – were much less likely to do anything. Note to media specialists: Unusually 2 of our key statistics were 92%: - 92% of people said their valued mail made them feel something - 92% of those who felt something did something Don’t get confused or worried; we’ve quadruple checked these figures, and they are right. It’s unusual, but it happens. Base: Felt something 2,757, Felt nothing 263. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

Average number of actions taken by those who acted AND THOSE WHO ACTED TOOK MORE THAN ONE ACTION ACTED Acted 4.7 Visited shop 6.3 Downloaded App 8.7 ADVOCATED Posted online 9.0 Discussed 5.2 Recommended 6.5 Average number of actions taken by those who acted 3.1 RESEARCHED Requested 7.7 Researched Online 5.6 PLANNED Planned purchase 5.6 Kept for reference 3.7 . Base: 3,000; multiple answers allowed. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

TOUCH CREATES A POWERFUL EMOTIONAL RESPONSE When people can both see and touch something, they value it 24% more highly than if they can only see it. Over a third of people say that the physical properties of mail influence how they feel about the sender.    +22% +24% Behavioural marketing experts have investigated the importance of touch in human psychology. Multisensory stimulation seems to alter the way the brain processes messages – often making processing quicker. Physical contact results in what psychologists call the ‘endowment effect’ – a sense of ownership over an item which makes people value it more highly. Scientific experiments have shown that people value something they can see and touch 24% more highly than something they can only see. Meaning that the physical nature of mail gives it a sense of importance as well as influencing how they feel about the sender. Participants were asked to subjectively grade ownership and value on a 7 point scale. Source: Peck, Joann, and Suzanne B. Shu. The Effect of Mere Touch on Perceived Ownership. Journal of Consumer Research, 2009; IPA Touchpoints 5, 2014

(% True of Mail vs. True of Email) PEOPLE FEEL VALUED AND HAVE A BETTER IMPRESSION OF THE BRAND The emotional impact of mail versus email MAIL EMAIL 63% 18% I am more likely to take it seriously 57% 17% It makes me feel more valued 55% 25% It gives me a better impression of that company A 2013 article in Scientific American showed that there is still a strong preference for reading on paper, driven by the physical properties of mail. And this preference for reading on paper does in fact translate into a preference for advertising mail over email communication. For example, we discovered that 63% of people say that they are more likely to take mail seriously, compared to just 18% of people for email. But not only does mail give a better impression of the company than email (55% vs 25%), people also feel more valued when they receive mail rather than email (57% vs 17%). (% True of Mail vs. True of Email) Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

WE CAN HELP YOU GET MORE FROM FROM YOUR INVESTMENT IN MAIL At MarketReach we have a dedicated team of media specialists, planning professionals and data experts who work with brands and their agencies to boost mail performance within the wider media ecosystem.  These professionals have full access to our proprietary research, media planning tools, case studies and more. They can help with an audit of your current mail use, an exploration of new opportunities including advice on postage incentive schemes, help with data cleansing, segmentation, analysis and targeting or simply by supplying relevant case studies to inspire you. And because we are confident in the commercial value that mail generates for brands, we don’t charge for these services. So whether you just want an initial chat with a mail expert who knows your industry or you want to arrange a full days mail workshop with your team, call us on 0800 014 2368. We’re ready to help.

Thank you We have a team of media experts and data planners ready to apply these learnings to your business. To discuss how we can help you, call us on 0800 014 2368 or visit mailmen.co.uk for more information.