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Royal Mail study shows direct mail can increase FMCG sales by 20 per cent
A survey by Royal Mail and dunnhumby, carried out among leading FMCG brands, has revealed that direct mail campaigns can improve in-store sales by more than 20 per cent as well as increase penetration and brand share.
Short-term sales rose by an average of 21.2 per cent, penetration by almost five percentage points and brand share by two percentage points, the study showed. Long-term results were also positive with an in-store sales uplift averaging 12 per cent, pe netration increase of nearly three percentage points and overall brand share rise of 0.4 percentage points.Royal Mail worked with marketing services and consultancy company dunnhumby and a portfolio of leading FMCG brands to ascertain direct mail's ability to achieve a range of marketing and sales objectives and its role in delivering increased marketing effectiveness for brands.
dunnhumby used its Crucible™ dataset to analyse 31 campaigns from 25 brands and measure their impact on the brands' sales. Crucible™ contains data on almost every GB household derived from a variety of sources including the Census, Electoral Register, Lifestyle and credit data suppliers plus the information contained in anonymised Tesco Clubcard profiles.
The relevant campaign files were matched to Crucible™ and analysed to determine the changes in purchase behaviour of the mailed recipients. The service is a first of its kind in the marketing analysis space because of dunnhumby's ability to track overall customer buying patterns and identify any changes in behaviour over any given period.
Royal Mail's Head of Media Markets, Richard Roche, said: 'In relation to other products, FMCG brands have always been more reluctant to utilise direct mail, mainly due to the low cost of individual product items and customer loyalty. We have invested in this study to provide solid statistics on the very real benefits of direct mail for FMCG brand owners to support their channel decision making processes.”
Advertiser campaigns from a variety of product areas including toiletries, coffee, pet food, washing powder and crisps, were evaluated over a specific time frame, or length of redemption of offer within the mailing communication.
Tagged as: royal mail | fmcg | direct mail |
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