The Arrival of the IMB

The US Postal Service has begun sending letters to businesses explaining the Intelligent Mail Barcode. From what we can tell, the communication is not entirely clear, but they are letting businesses know to expect some changes with their statements and direct mail campaigns.

As all mailers nationwide implement the Intelligent Mail Barcode (IMB) by May 2011, it will be interesting to see if companies take advantage of the potential benefits – or if the entire IMB program will be a wasted effort. Designed as a cost-saving measure for the USPS, the IMB does have some potential benefits for LKCS clients.

• The IMB can potentially provide proof of mail delivery on every piece – financial institutions will be able to verify delivery of each and every mailed statement, for instance.
• This mail piece tracking capability could also provide signficant cross-media campaign opportunities. Launch newspaper and radio ads on the same day that direct mail pieces are arriving in mailboxes. Send follow-up e-mail messages a few days or a week after the direct mail piece was received.
• And the IMB provides an address cleansing service, providing a way for LKCS clients to keep account holder and in-house list addresses up to date.

Of course, nothing is free. Will businesses nationwide be willing to pay for the tracking capabilities? And will businesses keep their lists updated or face the possibilities of additional charges from the USPS?

Mailers around the country are scrambling to get IMBs in place. Will the benefits outweigh the effort? Anyone want to take a guess?

Mobile is Taking Over the Web

Between iPhones, Blackberries, and Droids, mobile phones are clearly not just phones any more. Some staggering statistics have been published recenly.

• As of December 2009, 21% of U.S. wireless subscribers had a smartphone, compared to 14% at the end of 2008. According to Nielsen, U.S. smartphone penetration will exceed 50% in 2011. And according to Morgan Stanly, U.S. smartphone penetration will be greater than 80% by the end of 2012.
• In 2010, there will be over 10 BILLION mobile internet devices worldwide (this includes phones, GPS, tablets, MP3 players, etc.).
• By 2015, more users will connect to the internet from mobile devices than from desktop PCs says Morgan Stanley analysts.
• Facebook now dominates in chat, messaging, video sharing, games, VoIP and more.
• Mobile phones are designed for data as voice usage declines with internet access: 70% voice for an average cell phone, 45% voice for the iPhone.

What does this mean for the average marketer? It means that you need an effective mobile strategy. You need mobile web sites and ways for a mobile population to do business with you. How does your current web site look and work on a mobile device?

Facebook and Financial Institutions – What’s Next?

Facebook is far from a fad. It is changing how people connect with friends and family. It is changing how people learn about what’s happening around them. It is changing how people form their opinions. And it is changing how people interact with the companies they like.

There are thousands of banks and credit unions with Facebook pages. Some “get it” and remain social — providing value for their account holders and prospects without directly selling. They are dedicated to social media, to establishing online relationships.

Some don’t. They automate posts without relevance. They shamelessly promote their products. They is no two-way communication with their “friends”. Their Facebook presence will likely not grow substantially – in fact I’ve seen many financial institutions with more vendor friends than actual account holders.

There are all sorts of opinions about how banks and credit unions can leverage Facebook and Twitter. The online conversations are great. But, what’s next?

I believe the answer lies with what I see happening in the retail space on Facebook. Companies like Avon and Brooks Brothers have online stores DIRECTLY ON FACEBOOK. Their customers are BUYING their products and services without leaving Facebook! Yes — it’s secure. And, most importantly, it’s super convenient for the customer. Avon can post about the sun’s effects on skin — and customers can buy the products to protect themselves.

How does this apply to financial institutions? Can account holders log in to online banking and check balances or verify account history inside of Facebook? Can they communicate directly with a loan officer, apply for a loan and receive instant approval inside of Facebook? Can they pay their bills inside of Facebook? Can they open new accounts and services inside of Facebook? Can they research and price a new vehicle, a new home, a new appliance — and finance it within Facebook? Can they let their friends know how they can do this without leaving Facebook?

Maybe it’s not possible. But maybe it is.

Did you think that it was possible for a site to have 400 MILLION active users with 25 BILLION pieces of content created each month? Neither did I.

BTW – interested in more Facebook stats? Visit http://www.facebook.com/press/info.php?statistics.

Mail Volume Declines – Is Direct Mail Dead?

Earlier this month, the US Postal Service reported a $1.9 billion decline in profit for the first half of the 2010 fiscal year. Looking at mail volumes, total mail pieces have been declining annually — a net loss of 35 BILLION pieces of mail in 2009 compared to 2007. Clearly the recession and continued e-mail growth is hurting the USPS.

But, that’s not the whole picture.

Direct mail can still be an extremely effective part of your marketing strategy. Successful marketers constantly bring up the term “relevance”. The most successful direct mail campaigns (some are achieving response rates of 10% and more) are highly targeted and highly personalized – directed towards specific recipients and what you know about them.

Furthermore, direct mail is just one piece of cross-channel marketing options. Not all people respond to communications in the same way. Some are much more likely to respond to e-mail, others only reply to direct mail. Utilize both electronic and traditional channels in all of your campaigns rather than relying on only one or the other.

And, don’t forget that different channels complement each other. For example, direct mail is terrific at driving people to your web site to subscribe to your e-mail list. Follow up an e-mail campaign by sending direct mail to the people who do not respond.

The decline in the number of pieces mailed does not constitute a decline in the results you can achieve with direct mail. Instead, it is a testament to utilizing technology and imagination to improve one-to-one marketing and cross-channel marketing efforts.