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Success Stories

Intersport Eybl: record efficiency

In the retail business, every penny counts. This is why Intersport Eybl believes in maintaining personal contact with its clients by way of Info.Mail, which has proven to be a recipe for success for many years.

When Intersport Eybl introduced its loyalty cards in 1988, it was one of the first major retailers to rely on direct marketing activities to build strong relationships with its clients. Currently, 1.1 million clients have an Eybl loyalty card. Overall, Eybl loyalty cards are used for 96% of all purchases. Added efficiency and long-lasting client relationships are important benefits associated with direct marketing, especially in economically challenging times.

These days, many companies face rising material costs and HR costs for sales, communication and customer service. Competitive pressure is steadily increasing, while clients’ needs are becoming increasingly fragmented. Their high efficiency makes direct mailing campaigns are a great choice in such an environment. They have been designed for contacting clients directly. When combined with response elements, the direct mailing campaign’s success rate can easily be quantified.

Numerous studies have shown that recipients welcome direct mailings because they appreciate receiving special offers and information about new products. In addition, customers tend to like it when they can take their time to see what they are being offered.

OUR TIP: When creating direct mailing campaigns, make sure they provide plenty of information about prices and products. Creative design is also important, for it captures recipients’ attention and speaks to them directly.

Efficient advertising has shifted away from mass markets to specific market segments and to keeping in touch with individual clients. Wastage is kept to a minimum by directly addressing specific target audiences. Dialogue is key to all such advertising activities, because customer feedback allows companies to adapt products and services to the target group’s needs and requirements.

Direct mailing campaigns can target business clients or private clients. They can even be used within a company, for example to keep in touch with sales teams or to take relationships with suppliers to the next level.
Whichever approach you choose, the range of possible uses is almost limitless. It is no surprise that direct marketing accounts for more than 30% of all advertising expenses in Austria, which is equivalent to the amount spent on TV advertising. Experts predict a bright future for direct marketing: in particular, customer loyalty programmes and coupons are expected to grow steadily.  Personally addressed direct mailing items are expected to be increasingly important in the future.

Tchibo/Eduscho: fresh new clients

Initially, all Tchibo/EDUSCHO wanted to do was mail coffee to its clients. Many years later, Tchibo/EDUSCHO opened up a whole new retail world to its customers when the company decided to sell merchandise, which rotates on a weekly basis. Our Info.Mail service makes it happen.
What do freshly roasted coffee and direct marketing have in common? The answer is easy: if done right, they both help make a lot of new friends. Tchibo/EDUSCHO knows a thing or two about it, as the company is a true retail giant, with annual sales exceeding three billion euro. Even though it has expanded its range of products to include non-food products, the company has remained true to its initial business idea of 1949: sending coffee to its clients using the postal service.

Tchibo/EDUSCHO’s sales approach is known as “multi-channel sales”. It includes selling products in brick-and-mortar stores, at sales stations at other stores, online and via mail-order. Every month, the company sends out personally addressed brochures to existing clients to tell them about the following week’s offers. Tchibo/EDUSCHO targets potential new clients by sending “Info.Post Select” items to selected households on a regular basis.

Three ways of acquiring new clients
“Info.Post Select” is a service by Austrian Post that relies on Austria’s largest household database of 1.7 million homes and 3.4 million households. Clients can filter this database by age, profession or type of residence or even by so-called “lifestyle data”. Narrowing down the desired target audience by selecting specific habits and interests dramatically increases the efficiency of any marketing activity and the likelihood of obtaining new clients.

We recommend that companies that rely on geographical and socioeconomic criteria (e.g. household income) to define their target group to base their selection on postcodes. If the goal is to reach all households in a previously defined catchment area, then unaddressed advertising items sent to the “current resident” are the best choice. The third option for acquiring new clients is personally addressed direct mailings sent to a specific target audience. The required addresses are available for purchase. Addresses are available by all industries/type of business (e.g. medical doctors, advertising agencies) as well as for individuals.

OUR TIP: Use every possible occasion to collect qualified addresses from your prospects, for example at trade shows and at events or by adding response elements to product packaging or interacting with potential clients via your website.

Addressed direct mailings
All addresses added to the database need to be maintained on a regular basis. More than anything, companies have to make sure that their databases are up to date. Austrian Post will be more than happy to take this task off your hands with its “Address.Check” service. On average, 5 percent of database addresses are duplicates or have other errors. In addition, roughly 300,000 people move every year. Austrian Post has the largest database with information about people who have moved. In addition, we can analyse your database for duplicates and check addresses for accuracy.  When doing direct mailing campaigns, companies should record the clients’ reaction, even if they do not take any action on a given offer. This will be highly useful for the customization of future direct mailing campaigns.

OUR TIP: When designing your direct mailing campaigns, do not forget to keep the sales team in the loop. After all, customer service will increase your campaign’s success rate. Clients who receive highly personalised direct mails do not feel bothered by them, quite the opposite: they appreciate personalised attention. Even if a certain offer is not attractive to them, they might appreciate the company’s staying in touch, which will in turn increase customer loyalty. Another plus is that in-depth knowledge about repeat customers’ needs and preferences will be highly beneficial when it comes to creating future advertising campaigns targeted at new clients.

 

Vienna Insurance Group: We love your clients!

Vienna Insurance Group relies on targeted direct mailing campaigns for existing clients – with resounding success. Well-maintained addresses and attractive offers are key to this success.

On average, Vienna Insurance Group does between 40 and 50 direct mailing campaigns per year. For every campaign, the company sends out 1.5 million personalised items. Approximately one in every ten clients reacts to the new offers or decides to upgrade existing policies. This is quite an impressive response rates considering that internationally, the average response rate for direct mailing campaigns is roughly three percent. To achieve this outstanding result, Vienna Insurance Group relies on database marketing, which means sending targeted offers to existing clients with the help of a well-maintained address database.

A surefire way to higher sales
One thing is certain: repeat customers are any company’s best ally for good and efficient sales. Renowned marketing experts, especially the inventor of direct marketing, Lester Wunderman, share this point of view.
He determined that companies generate 90% of their sales from existing clients. Gartner Group Inc., an international consulting firm, calculated that a 5% increase in customer loyalty translates into a 40% increase in sales. Another interesting detail is that on average, one in every two clients who sever business relationships with any given company indicate that their decision is based on unsatisfactory customer service and poor personal attention.
Siegfried Vögele of the German Direct Marketing Institute DMI believes that “two percent of lost addresses for long-term clients translate into a decrease in sales up of up to 10%.” Robert Lasshofer, a board member of the Vienna Insurance Group, agrees that sending direct mails to existing clients is more cost effective than trying to acquire new clients: “The expenses amount to 80 cents per contact, which is relatively low. Compared to our overall marketing costs, our expenses for direct mailing activities are low while their relevance, i.e. their immediate sales potential, is very high.”

Well-maintained address data: your recipe for success
All addresses added to the database need to be maintained on a regular basis. More than anything, companies have to make sure that their databases are up to date. Austrian Post will be more than happy to take this task off your hands with its “Address.Check” service. On average, 5 percent of database addresses are duplicates or have other errors. In addition, roughly 300,000 people move every year. Austrian Post has the largest database with information about people who have moved. In addition, we can analyse your database for duplicates and check addresses for accuracy.  When doing direct mailing campaigns, companies should record the clients’ reaction, even if they do not take any action on a given offer. This will be highly useful for the customization of future direct mailing campaigns.

OUR TIPP: When designing your direct mailing campaigns, do not forget to keep the sales team in the loop. After all, customer service will increase your campaign’s success rate. Clients who receive highly personalised direct mails do not feel bothered by them, quite the opposite: they appreciate personalised attention. Even if a certain offer is not attractive to them, they might appreciate the company’s staying in touch, which will in turn increase customer loyalty. Another plus is that in-depth knowledge about repeat customers’ needs and preferences will be highly beneficial when it comes to creating future advertising campaigns targeted at new clients.