Many businesses in Australia still use classical marketing KPIs like clicks, CPA, unique visits or page views... all of which are vanity metrics that do not reveal anything about the health and efficiency of a business. Instead businesses should use actionable metrics like conversion rates and efficiency factors to analyse whether or not a marketing channels performs well. At ParcelPush we always do AB testing based on actionable metrics and we encourage our network partners to UTM tag the whole customer journey to see what value is created during each step... In additional actionable metrics help to establish a fair attribution model and to analyse how leads from channel A converted in a channel B, C or D... At Ad Tech Sydney on 18th March 2014 we presented the attached presentation. Please contact firstname.lastname@example.org in case you would like to receive further excel calculators or attribution model readings in PDF format and we are happy to send it to you.
Effective promotional measures contribute significantly to the success of a business when they reach the right audience. However, many consumers feel annoyed by advertising. No wonder - when surfing the internet customers see banners flashing on all corners of the screen, which makes it difficult to focus on the content of the website. If you come home at night and empty your mailbox, you probably have difficulties in finding something interesting among the many leaflets and free newspapers. Or if you are relaxing in front of the TV after work to watch your favourite movie, most likely it will be interrupted every 20 minutes by commercials.
Many people simply do not pay attention to advertising and Advertisers ask themselves - “How can I reach my target audience more effectively? How can I ensure that the customer does not feel bothered by my advertising, but picks it up positively?”
A particularly eye-catching form of advertising are package inserts. Companies place their promotional material as inserts into the boxes of mail-order or online retailing companies. Key benefits of this method of advertising are, that the advertising hits the parcel receiver and potential customer in a positive mood which already increases the conversion rate. The reason for this is quite simple: The consumer has ordered something he or she would like to have and is happy about the package, which is why the content of the box gets observed in every detail – a bit like Christmas.
Since package inserts can be adapted by specific selection criteria for the target group on the basis of the ordered goods, the probability is high that the advertised offers within the package match the interest of the receiver. The precise localization of the target group creates an advantage for the advertiser as well, who hardly needs to worry about wastage. Customers also value the relevancy of advertising, especially if it adds value to the product they just received.
To achieve the greatest impact through a ParcelPush, you should consider the following:
1. Target Group
Advertise through parcel inserts, as if you offer someone a relevant coupon or sample that is relevant to what they are receiving from a store - a woman who has just bought a month's supply of Nappies will probably not react too well to an offer of a car subwoofer...
It is important to know your target audience well and to know where they shop online, which the ParcelPush team is more than happy to work out with you. In addition to the mandatory socio-demographic data and their socioeconomic characteristics, personality factors and their communication behaviour provide valuable background information.
2. Form of Advertising
The variety of different advertising materials is huge: flyers, coupons, product samples, giveaways, stickers… endless options. While the success of each advertising medium depends on the target group, a few general statements can be made: Simple Flyers are not grabbing enough attention in most cases (see best-practices here). Product samples and giveaways are always more successful in stimulating the customer and often remain in the customers memory for a long time “I owe them something”, which often leads to a purchase. However, they are lacking a call-to-action and work best in conjunction with a voucher. Vouchers or coupons are best suited to make a promotional statement. It is no surprise that coupons with a fixed value, such as a discount of $15 AUD are more popular than those that promise a percentage discount, because the price advantage is more obvious to the customer although the actual percentage discount may be worth more in the end.
Well designed inserts are the perfect business card for a company. A clear layout, the proper placement of the heading and meaningful images plus a large dollar value provide the best results (read our previous blog post). Warm background tones convey a positive feeling - especially when they are printed on high quality paper, which gives a feeling of quality and desire. Also the print quality is essential which is why ParcelPush works with one of the best printers in Sydney. Blurred letters and blurred prints always look unprofessional.
4. Distribution Channel Partners
ParcelPush selects and manages the right Distribution Channel Partners with the right target audiences including quality control such as impromptu warehouse visits and test orders. We also conduct competitive analysis for both the Advertiser and Distribution partner in order to prevent marketing collaterals from going into boxes with competing products.
5. Reporting and Analytics
Performance is everything. Anyone who spends money on advertising would like to know what he/she gets for their advertising dollars. Our performance reviews include demographics, distribution and conversion data.
A very practical way to check the performance of the campaign, even in real time, can be achieved through the use of dedicated coupon codes or URLs. Thus, the success of the action may be directly identified. Especially if the campaign runs across various distribution partners and the use of separate codes and URLs is always recommended.
Best Practice Example
The ParcelPush team has designed and analysed hundreds of voucher flyer creatives over time and shares with you a 5-step guide about how to design the perfect flyer with a voucher code offer on it in order to get the highest possible conversion rate results for your webshop:
Step 1: Print Size And Weight
We have found a DL-sized format (99x210mm) at 150gsm or 175gsm to work the best for the following reasons:
Step 2: Copy writing And Text Elements
The copy of your flyer is crucial and these are the standard elements that need to be worded according to your brand guidelines:
Step 3: Define Your Offer And Set Up The Right Conversion Tracking
This is probably the most important part, which many advertisers still get wrong although all marketing should really be made trackable. Always use these three elements for a flyer with a voucher code offer on it:
Step 4: Design and Layout
You need a graphics designer or an agency like ParcelPush, who is experienced in Photoshop to get this right as the design really makes a difference. Here are our design tips to get it right:
Step 5: Create And Test Different Versions Of Your Flyer By Measuring Results
Graphics Designers need to think like managers or entrepreneurs in today's data-driven world and need to find ways to learn and iterate designs quickly. Hence there is no way around AB testing different designs. Here are a few tips how to do design AB testing correctly:
ParcelPush Pty Ltd has been growing its distribution capacity tremendously by signing up well-known Australian retailers as partners in the last few month. The Insert Marketing Agency is now able to put your marketing collaterals into E-Commerce boxes of over 300,000 Australian online consumers every month - all of them experienced shoppers with access to credit cards or a PayPal account.
Your offers reach the consumer in the most positive moment of their e-commerce journey: The moment they open up the box!
Conversion rates are being compared to classical online marketing channels e.g. through offers on dedicated landing pages or through voucher codes.
Contact the ParcelPush team today to find out more about the new innovative insert marketing options for flyers, samples, pamphlets or brochures.
42% of Australian consumers prefer to receive vouchers or coupons in the postal mail, while only 25% would like to receive such offers electronically via email, according to a recent Australia Post Consumer survey around mail findings. The statistic shows an even more promising result for brochures or catalogues which 51% of Australian consumers would prefer to receive via postal mail while only 14% would prefer to receive them via email. 84% the Australian people open their mail on the day it’s received (up 3% on last quarter), illustrates that people are genuinely interested in opening and reading their mail.
The survey results strengthen the above-the-line marketing channel around flyer distribution and especially great offers delivered as inserts within e-commerce boxes can be expected to show great conversion rates for online retailers. The survey strengthens this argument by stating "When thinking about the multitude of messages consumers are exposed to every day via email, television, daily, newspaper, magazines and outdoor billboards, the letterbox as a channel has great potential when the message needs to stand out from the clutter."
We just launched our new network pages where our advertising and retailing partners can view updates around the latest distribution and insert opportunities. This solution is designed also for the long-tail of e-commerce e.g. all online shops or eBay powersellers can participate with a minimum monthly shipping volume of 500 orders. http://www.parcelpush.com.au/network.html
We have an exciting news for advertisers: We have now grown 200,000 monthly insert opportunities and the first slots of up to 5 flyers per insert have already been sold.
Back in the old days in the 1990s insert marketing was heavily used by the financial and telecoms sector. Consumer magazines accounted for 69% of all inserts in 1996* and often the inserts would simply fall out of the magazines or just remain for seconds in the hands of consumers. The internet and online retail revolution changed all of that. Voucher codes can now be redeemed online much quicker and who doesn't like to order something online and have that almost "Christmas-like" feeling, when the parcel arrives at home. Flyers that get inserted into eCommerce parcels are an excellent way to reach online consumers in a positive moment.
Letterbox distribution has been the traditional way in finding buyers for your services both at a local area and national basis. Despite the onset of the internet (....and email spam), printed Flyers/Vouchers are still very well accepted into households and are acted upon. Printed promotional mail with a "Call to Action" have one of the highest acceptance rates compared to other forms of direct marketing.
As with all successful marketing programs, you must target where you want your advertising dollar spent.
Inserting Flyers/Vouchers/Samples into ecommerce parcels together with a targeted letterbox distribution you are able to increase your conversion rate, cost effectively.
As an example, a Tree Arborist can target (via parcel insertions) to many scattered homes across a metropolitan area and they can also target some local area marketing via letterbox deliveries to all houses (not home units) in areas they are going to work in or are currently working in. This type of targeting ensures cost effective marketing and assists the Arborist with their work scheduling, etc.
Distribution of Flyers intelligently targeted, frequently distributed and offering something special for the recipient certainly assists with your success.
We are based in Sydney and serve large Australian marketing agencies and advertisers while cooperating with online retailers across AU and NZ.
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