Programmatic mail is making waves on the marketing scene, and with good reason. It’s an exciting tool that brings out the best of digital marketing and marries it perfectly with Direct Mail; In marketing terms, a match made in heaven.
In this blog piece we look at what Programmatic mail is, how it works, who it targets and the benefits it can bring.
What is programmatic direct mail?
Programmatic Direct Mail is the process of targeting prospects and customers using online behavioural data to send relevant and personalised Direct Mail pieces to drive conversion.
According to recent research by the Baynard Institute, basket abandonment rates are currently around 69%, costing retailers up to an eye watering £1 billion in lost revenue. It’s clear to see why implementing a basket abandonment remediation strategy could have a huge impact on your business!
The GDPR effect
The recently implemented GDPR regulations have made it more difficult for businesses to target lapsed customers via email. In a pre-GDPR landscape, companies were able to send basket abandonment emails to prospects gently reminding them about items they’d dropped in their basket before promptly abandoning it without purchase. This usually came in the form of a mini questionnaire enquiring if there were any issues with the transaction or indeed the website itself. The incentive here was less about improving their own customer service but more about reminding the prospect of their original desire to purchase the product itself. Without explicit consent, GDPR has made this tactic a lot more difficult, leading many businesses to turn to Direct Mail as the regulations around consent for the channel are much less stringent.
The key stats
A case study on a leading UK fashion retailer published by Royal Mail Market reach showed some very interesting results. Having set up a trial which utilised programmatic direct mail to engage their lapsed customers, the campaign delivered some encouraging stats:
- Abandoned cart rates reduced by 14%
- The average order value increased by 8%
- Overall response rates increased by 6%
Compelling reading for anyone looking to encourage customers to complete the purchase journey.
Direct Mail leading the revolution?
Direct mail has been found to trigger ‘stronger emotional responses’ than it’s digital counterparts, stays in the memory longer and is much less likely to be ignored. Given the undeniable importance of online activities, perhaps Programmatic Direct Mail’s biggest asset is it’s ability to combine the best elements of digital marketing with the physical impact of direct mail. It’s this vital stage of the consumer journey that has perhaps been overlooked for some time. A recent survey from Retail Dive found that 65% of consumers that made purchases in physical stores on the high street researched the purchases they made online first. Offline channels have long been used to drive consumers to digital channels, but has there been much traffic coming in the other direction?
The shopping experience for consumers should be an omnichannel approach, with customers being reached at different touchpoints throughout the journey. Programmtic Direct Mail can be vital in closing the purchasing loop.
By implementing a Programmatic Direct Mail strategy to target your lapsed customers, you can expect to see increases in your online and in store purchases as well as increasing your brand awareness and expanding on your relationship with your customers and prospects. The ability to reach your target audience and serve them relevant and personalised content related to online behaviours they have exhibited is invaluable.
After what many assumed would be a rocky start, digital marketing and direct mail now appear to be a match made in heaven.
Thanks for taking the time to read this blog piece on programmatic mail. If you need any further info or would like to talk to us about your requirements, feel free to contact us on our office number: 01189 474 888 or alternatively, email us at enquiries@heraldchase.com
*Sources: Royal Mail Market Reach, Retail Dive, The Baynard Institute
