To say that postal mailing has suffered a major setback with the advent of SMS, the web and then smartphones would be an understatement. Jobs linked to postal activities have largely eroded over the last 25 years, and for good reason: why send letters that take several days to arrive when you can send a (multimedia) message on WhatsApp?
The reasoning is logical, but simplistic. Contrary to popular belief, postal marketing is (very) far from having said its last word. What' s more, some brands are delighted with it, citing it as their most profitable marketing channel... but only if it's done right. In this article, the Data Enso editorial team explores the subject of undelivered postal mail: figures, causes, consequences and solutions.
Mailing: impressive figures for postal marketing
Inevitably, as mailing receives less and less "media coverage", studies documenting its performance are becoming rare. Indeed, you have to go back to 2018 - 2019 to find reliable figures... but they speak for themselves! Summary:
- In France, 69% of recipients say they read and keep mail received through mailing campaigns. This is almost 5 times more than the average email open rate (TNS Sofres - Mediapost survey);
- On average, customers acquired through e-mail marketing campaigns buy 28% more than customers acquired through other channels (USPS);
- 73% of American consumers say they prefer to receive physical mail rather than a call or email from brands (Epsilon);
- The open rate for postal mailing campaigns is around 90%, compared with an average of 20-30% for emailing (Data & Marketing Association).
So much for the performance of this marketing channel considered "obsolete" by some. But to reproduce these indicators, your mailing campaign must be carried out according to the rules of the art... 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, to a lesser extent, telephone number, the postal address can change more often than you might think, especially with certain 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.
The postal address can also help you personalize 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 region in question (heating, air conditioning, winter or summer clothing, etc.).
More generally, a database containing obsolete, erroneous or badly formatted addresses will inevitably lead to NPAI, an acronym dreaded by marketers launching mailing campaigns.
NPAI, for "N'habite Pas à l'Adresse Indiquée", or PND (Plis Non Distribués), is a term used in postal marketing to designate mail that is returned to sender because the recipient no longer resides at the address indicated on the envelope. Moving house, incorrect address, failure to redirect mail in the event of a move... the causes of undelivered mail are numerous, and the consequences are far-reaching:
- Additional costs, because NPAI mail has to be processed, returned and, if necessary, resent;
- Lower mailing performance, since your message doesn't reach the target you'd hoped for. You therefore incur a loss of earnings and an opportunity cost;
- Waste of resources (paper, ink, envelopes...), which will reflect badly on your CSR policy, which brings us to the next point... ;
- Brand image affected, especially if you deliver your products by post, canvass by post (brochures, catalogs) or send letters to existing customers to build loyalty or re-engage them (gifts, personalized invitations, discount vouchers, etc.);
- More broadly, a database riddled with incorrect, poorly formatted or obsolete postal addresses will reduce marketing ROI and limit its contribution to sales performance. At a time when marketers are under pressure to demonstrate their impact on sales, it's inconceivable to launch mailing campaigns with an obsolete database.
The economic stakes are obvious, as the average cost of a PND is estimated at €1.80 for postage. In practice, it is all too common to find companies that put up with high NPAI rates, well in excess of 10%. Generally speaking, a good file should produce an NPAI rate of less than 1%.
EnsoAddress: neutralize NPAI to unlock the full potential of direct marketing
Ensuring the reliability of a postal address requires several layers of qualification and processing before it becomes operational and usable by the company. To support you, we have developed EnsoAddress, a turnkey solution that helps you neutralize NPAI and unlock the full potential of your direct marketing campaigns:
- Syntax validation (typing errors, identification of abbreviations) ;
- Data formatting (restructuring, standardization of addresses according to current standards) ;
- International validation (reference systems from over 100 countries and geolocation) ;
- Automatic suggestion, with input help based on the first characters entered, and a list of results to facilitate the user's task and enhance 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 the ROI of your direct marketing campaigns!
