CADM B2B SIG Lunch and Learn - Busting the myth of the #10 envelope Recap

On July 14, 2011, the CADM B2B SIG hosted a Lunch & Learn, sponsored by our friends at Rodgers Townsend DDB. We had a great turnout from a diverse group of agency, client, database, and production specialists. Everybody participated in this lively conversation regarding whether the DM workhorse format from the 20th Century--the #10 business letter--is the go-to choice for B2B direct marketers.

Following is a quick snapshot of the conversation highlights:

1. What formats are working today?

• Closed- face, nonwhite envelopes are more popular than ever. The closed face seems more personal, while colors other than white tend to stand out from the clutter. There were numerous examples of highly branded envelopes with graphic elements rather than plan white stock.
  
  
• Vertical markets, particularly financial services, often use a traditional business letter approach. A challenge for some members was client direction to intentionally misrepresent recipients by creating marketing pieces that look like bills or checks, which could increase open rate but potentially damage the brand relationship.
  
  
• Additional touches are key, whether the medium DM or Email. Quality of leads (calls vs. clicks) need to be differentiated in order to determine true success.
  
  
• Personalization is priority. Customers want to feel appreciated…and known.
  
  
• Dimensional pieces drive RRs and tend to reduce churn for retention customers, but if performance is measured by cost per piece rather than cost per sale, the high cost may be a deterrent for many marketers/clients.

2. Additional insights.

• Nonprofit groups respond differently to high impact pieces. They respond but they don't tend to be as loyal as customers that receive a less flashy piece. This could possibly have to do with the fact that they are more concerned about the message and value behind how this will benefit their cause/interest.
  
  
• 79% of all households that have mailboxes will at least skim their mail.
  
  
• Only 19% open email. This is more characteristic of consumers (as opposed to business) but is something to consider for smaller businesses.

3. New opportunities.

• The USPS has a new program for businesses looking to acquire new customers. This new feature is a less personalized tactic, but it allows more flexibility in the mail piece (flats can be sent at a letter price) and data. If a client knows they want to target customers in a particular block or neighborhood, they can use this feature. It works well when trying to reach customers that may be in a high rise or office building.
  
  
• Scratch-offs are driving response rates. It's a new way for customers to interact with the piece. When incorporated with the QR barcode, some companies have seen a RR of up to 87% if customers have something to drive them there.
  
  
• The introduction of 3D printing may be another new tactic on the horizon, particularly for more promotional pieces.
  
  
• The USPS is offering a 3% discounts on QR codes through August 31, 2011.

4. Did we bust the myth?

• Target and message are what's important. Do #10s work? Sometimes. Are they the solution for every need? No. Go out with what is best for the target and the message.

Written by Katie McGrath, Business-to-Business SIG Chair