The Strategic Mailing Partnership has struck a deal with Royal Mail to bring programmatic mail into wholesale costing incentives.
The deal should encourage the popularity of direct mail messaging triggered by a customer interaction, frequently online. The posting of a catalogue or a new offer would fall into this category. Unlike a mass mailing of thousands of catalogues which can already attract postal discounts, programmatic actions are sent in smaller batches in direct response to customer activity. The end customer’s permission is crucial to the effectiveness of the programmatic channel.
Another key implementation of a programmatic message would be an offer sent to a customer that had filled a shopping trolley on a website but had not completed the deal. The physical letter, sent the next day or within 48 hours, is often enough to tip the balance. In a trial at catalogue retailer JD Williams, response rates increased by 6%, AOV by 8% and the abandoned trolley rate fell by 14%.
“It is physical mail and programmatic advertising working perfectly together,” says the SMP. “Programmatic Mail uses a direct mail adaption of the way programmatic advertising uses software to strategically purchase advertising space online. It is a new and dynamic way of nudging customers through the sales funnel by delivering highly targeted direct mail to existing customers, in real time, to boost website sales.”
Chair Lucy Swanston adds: “Programmatic mail is such an exciting new development for marketers. We are proud Royal Mail Wholesale has been fleet of foot in launching this incentive scheme so the print and mailing industry can more easily capitalise on this technological advance to help their customers seamlessly combine the strengths of digital and print to significantly increase ROI.
“Programmatic mail builds on the love consumers have for mail and makes them love it more because they receive it, tailored specifically for them, and at the right time, while their initial digitally sourced interest is still fresh.”
The discounted mailing rate can apply when a mailing house is sending out fewer than 4,000 items daily, the usual threshold for discounts. Consequently there are two routes to achieve the Advertising Mail rate, starting with a minimum of 50,000 items sent in a 12-month period. The items need to be sorted in trays for posting and companies wishing to take advantage need to sign up by 3 February.
