The rise of text messaging, the Internet and then smartphones has caused postal mailing to underperform. The number of jobs in postal activities has largely declined over the last 25 years, and for a good reason: why send letters that take several days to arrive when you can send a (multimedia) message on WhatsApp?
The reasoning is simple, but logical. Unlike what you might think, postal marketing is (very) far from having said its last word. Some brands are even happy to use it, citing it as their most profitable marketing channel… but only if it’s done properly. In this article, Data Enso’s editorial team explores the subject of undelivered mail: figures, causes, consequences and solutions.
Mailing: postal marketing’s impressive figures
Mailing is becoming less and less “mediatized”, so studies documenting its performance are becoming rare. In fact, you have to go back to 2018 – 2019 to find reliable figures… but they speak for themselves! Summary:
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- In France, 69% of recipients say they read and keep mail received through mailing campaigns. That’s almost 5 times more than the average email open rate (TNS Sofres – Mediapost survey);
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- On average, customers acquired through mail marketing campaigns buy 28% more than customers acquired through other channels (USPS);
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- 73% of American consumers say they prefer to receive physical mail rather than calls or emails from brands (Epsilon);
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- The open rate for postal mailing campaigns is around 90%, compared with an average of 20-30% for emailing (Data & Marketing Association).
These are the figures for a marketing channel that some consider to be “obsolete”. However, if you want to achieve the same results, your mailing campaign must be done properly… and that starts with a reliable, relevant and up-to-date database.
NPAI: the acronym that cuts into your direct marketing ROI
The “postal address” field in your database is crucial for several reasons. Unlike information such as surname, first name and phone number, the postal address can change more often than you might think, especially with some target groups such as young people and mobile professionals. According to a study by HomeBox, three million French people move house every year, representing 10% of all households.
A postal address can also allow you to customize your online and offline marketing campaigns, for example, if you have a physical store close to the recipient’s home, or if your product is relevant to the climate of the area in question (heating, air conditioning, winter or summer clothing, etc.).
Generally speaking, a database that contains obsolete, erroneous or poorly formatted addresses will inevitably lead to NPAI, an acronym dreaded by marketers who launch mailing campaigns.
NPAI, for “N’habite Pas à l’Adresse Indiquée”, French for “Does not reside at the indicated address”, or PND (“Non Delivered “), is a term used in postal marketing to describe mail that is returned to the sender because the recipient no longer resides at the address on the envelope. Moving house, incorrect address, failure to redirect mail in case of a move… there are many causes for NPAI, and it can have serious consequences:
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- Additional costs, as NPAI mail has to be processed, returned and possibly resent;
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- Reduced mailing performance, as your message doesn’t reach its intended target. As a result, you suffer a loss of revenue and opportunity;
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- Waste of resources (paper, ink, envelopes…), which will reflect badly on your CSR policy, which brings us to the next point… ;
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- Brand image damage, especially if you deliver your products by post, prospect by mail (brochures, catalogs) or send mail to existing customers to build loyalty or re-engage them (gifts, custom invitations, discount vouchers…);
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- A database full of incorrect, badly formatted or obsolete postal addresses will reduce marketing ROI and limit its impact on sales performance. Marketers are under pressure to demonstrate their impact on sales, so it’s unacceptable to launch mailing campaigns with an obsolete database.
The financial implications are obvious, as the average cost of a PND is estimated at €1.80 for postage. In practice, companies often tolerate high NPAI rates, well over 10%. As a general rule, a good file should produce an NPAI rate of less than 1%.
EnsoAddress: neutralize NPAI to unlock the full potential of direct marketing
Reliable postal addresses require several layers of qualification and processing before they are operational and usable by your company. We developed EnsoAddress to help you neutralize NPAI and unlock the full potential of your direct marketing campaigns:
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- Syntax validation (typing errors, identification of abbreviations) ;
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- Data formatting (restructure and standardize addresses according to current standards);
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- International validation (reference systems for over 100 countries and geolocation);
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- Automatic suggestion, with input help based on the first characters entered, and provision of a list of results to make it easier for the user and improve the user experience.
Like all our solutions, EnsoAddress can be integrated into your customer acquisition processes (API in your online forms) and meets your needs for ad hoc file processing, Discover EnsoAddress and boost your direct marketing ROI!