direct mail, Government, Marketing, Media, Thank You, USPS

Their Appointed Rounds

The United States Postal Service closed out their fiscal year September 30.  Never mind that the rest of the world goes by the annual calendar; the USPS wanted to beat the Christmas rush.

All in, the giant continues to perform well, within the confines of its quasi-government walls.  I wish the rest of the Federal government departments spent as much time looking after their own performance and expenses as does the USPS.

But from the latest Revenues Pieces And Weights report, here are a few glimmers of surprise and excitement.

  1.  It is a $69.6 billion dollar enterprise.  In the Fortune 500 list, it hovers around #37, bigger than Target, and smaller than Procter & Gamble, both good neighbors.  Like both of these companies, the USPS is an indicator of the USA’s pulse rate, though we will admit that it has slipped a bit.
  2. In 2017, the USPS revenues slipped $1.8Billion.  We know why.  The Web, social media, email have all disenfranchised much of the USPS core business: first class mail and standard mail.
  3. First class mail continues to fall, $1.9Billion.  Compared to last year, it delivered 2.5Billion fewer pieces of mail, a drop of 4.1%.  Why? Because we receive our invoices, checks and statements electronically.  We pay electronically too.
  4. Standard Mail, now call Marketing Mail, dropped 2.6Billion pieces, about 3.2%.  Why?  Last year was a mail-infused election year.  It was distinguished by huge volumes of mail, from you know who, despite his predilection for Twitter.
  5. Overall, in its market dominant categories, that is, where it holds monopoly rights, revenues fell just over $4.0Billion.
  6. In the open competitive markets, ie., parcels and packages, revenues were UP over $2.2Billion, a 12.5% increase.  Wow! Who knew?

The Web Taketh, And It Giveth

Here’s what I find impressive about the USPS.  Despite the constant nagging of the digital futurists who want to write the Obit for the post office, it continues to hold its own.  In an environment where Internet media are running rampant, the USPS has found a broad new niche: parcel delivery, a $20Billion business.  If anyone should be worried, it will be the brick and mortar retail stores. Ask Sears.  Ask Toys R Us.  Ask Amazon.

American consumers have taken to the Web in all respects, but at day’s end, they need physical product delivery, and the USPS has risen to serving that need.  After all, they were coming by our house anyway.  Their two main competitors are UPS and Fedex, the latter using the postal carrier to make the “last mile” delivery.

Neither Rain, Nor Snow, Nor Gloom of Night…

Postal carriers are the only American entity which visit 157,000,000 addresses every day.  They delivered, all in, 149 billion items in 2017.  They lifted 24 Billion pounds, or 12 Million tons, of physical product: mail, checks, magazines, parcels and yes, live bees and plants. The USPS has over 500,000 career employees and another 140,000 part-timers.  While this may seem like a wildly aggressive employer, I put it to you that the postal employee actually delivers, a claim many can’t make for other government institutions.

So hats off to the USPS.  It continues to fight the currents, and with little help from its political friends, it far surpasses its governmental cousins.

Thanks for reading! If you would like to take a look at the USPS 10-K for 2017, click here!

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direct mail, Economics, Education, Fundraising

What It Takes To Raise A Buck

The Dream Catcher: the ultimate gift.

It may be a function of age, but we receive a fair share of fundraising direct mail. Occasionally we get kits that amaze us for their content, with the underlying question, how can this possibly make money?

St. Joseph’s Indian School uses a donor acquisition package that pushes the boundaries, but based on their frequent use, this kit makes money. But it still amazes.

A personalized lift note accompanies the letter.

The key to powerful direct mail is rolled up in this slogan: List-Offer-Format-Copy. You can figure it out. But a subset of “Format” is fundamental to understanding good design: Size-Cards-Labels-Diecuts-Personalization.

Take a look at St. Joe’s and how they go beyond the formula.

The 9×9-1/2 Flat kit is hard to ignore.

Size
The envelope is 9×9-1/2. No wait, it’s not an envelope. It’s more like a bag, a catch all, and it’s a half inch thick. Not normal! Right away, we are talking a Flat, not a letter. Odds are it weighs more than 3.3 ounces, so no kidding, this is a small trunk in the donor’s mailbox. Despite its bulkiness, it is still machinable, but I’ll bet the USPS would love to be rid of this mini-parcel bouncing through their multi-million dollar sorters. Remember, in direct mail, size counts.

The calendar is one of 8 personalized pieces.

The perfed donor form highlights what your donation will buy.

Cards
Many successful kits provide a card. It’s personalized, perhaps laminated or plasticized, embossed, and maybe delivered in pairs. Very common in retail, insurance, service and association mailings, cards convey belonging and entitlement. While St. Joe’s doesn’t have a card per se, they do include personalized memorabilia like calendar cards, and gift certificates.

27 address stickers, enough for every utensil in the kitchen drawer.

Labels
Do we have enough address labels? Maybe, maybe not. Until you have labeled all your electronic gear, computers, cell phones, 14 golf clubs, CDs, Vinyl, USBs, chargers, staplers, umbrellas, Christmas cards, 3-hole punch and entire library of Clive Cussler books on loan, you aren’t done. And beside labels, anything that is pressure sensitive, like Post-it notes, velcro and magnets counts as an involvement device that draws your reader in a tactile way to your mailing. St. Joe’s goes over the top to provide stickers and labels for the donor, their children and the next door neighbor’s cat.

Mood aubergine: more labels for every occasion.

Die-Cuts
Really a technical obsession for printers and origami artists, the die-cut is a subtle paper carving that uses perforations, kiss-cuts, windows and trimming to create a 3-dimensional or engineered aspect to your kit. The recipient will work those die-cuts intuitively, without thinking, to unfold and self administer a little presentation for their personal viewing. Again die-cuts precipitate movement and finger work, which is involving your reader.

The Post-it note doubles down on the ask.

Personalization
St. Joe’s knows how to attract the eye, and that starts with calling out to the reader repeatedly. 8 times in fact. Envelope, letter, donor form, certificates, address labels, stickers, calendar, lift note…no matter your persuasion, it is hard to casually throw out a piece of paper that has your name on it.

I offer an additional element that may trump the 5 attributes above–

A 24-page calendar with original art makes this kit indispensible.

Indispensibility
Above and beyond the formula I gave you, the appeal of the St. Joe’s piece is that you just can’t throw it out. Why? Because in addition to all of the features, the envelope is packed with gifts, and useful items: three shrunk-wrapped greeting cards, a note pad, a 24-page calendar with art, the stickers or course, and the piece de resistance: the Dream Catcher. Not to mention the 3 penny stamps affixed to the reply envelope. Almost impossible to throw in the bin…just can’t do it. Arrrgh!

So there you have a fully loaded kit.   But can it pay for itself?

The first rule of fundraising: donors don’t come free. So management knows they must develop their donor files, which is what this kit is for.

The note pad’s backer explains the mission and prayer of the Lakota community.

It’s a bit of a guess, but based on a nickel a page, this kit probably cost around $2.50 to print and assemble, plus the Dream Catcher…, maybe $3.00. Postage will be around 50-55 cents, based on a 6.4 ounce kit, automation rate, non profit.  Add in the lists, freight and data processing and it has to be $4.00 a kit.

Wow!  “Who has that kind of money?” fret the accountants, and by the way, a lot of donors, too.

But here’s the thing, because of its impact, its stopping power, this piece could have a 5-8% response rate.  Let’s say 7%.

Three tastefully designed greeting cards, individually wrapped, are an extra push for donation.

Then $4.00/7% = $57.00 cost per response.  And what is the average gift? They are asking between $8-$70.  Again say it’s $30.  So the net cost is $27 to get a new donor.  That donor will have a longstanding, profitable relationship with St. Joe’s and looking at the financial statement, there is about a 10% chance that the donor may make a final bequest in their will to the organization.

Overall, St. Joe’s has a fundraising efficiency of about 31%, according to their financial statement. 31 cents to raise a dollar.

This may seem higher than some of the nation’s largest, more well known non-profits.  But keep in mind that those have strong, pervasive brands, high impact causes like hurricanes and disease, and oodles of corporate in-kind support, too.

Thanks for reading!  Please share!

 

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direct mail, Marketing, USPS

Finally Closing The Mail Gap

Out of town, or at the office, consumers can check their mailbox.

The USPS may be experiencing the continuing shrinkage in mail volumes, especially after the election season spike of 2016. But despite the trend to digital, the folks at L’Enfant Plaza, DC 20590 have come up with a winning service, “Informed Delivery”.

Householders and businesses can receive emails daily reporting what letters have been mailed to them.

You may have thought that Facebook or Instagram are the leading purveyors of new photography– the daily delivery of selfies, restaurant plates, goofy pets and family outings. In fact, it’s the USPS.  It takes approximately 411,000,000 new pictures every day.

The images are emailed, and also displayed on the user’s web portal.

The automated sorting process for letters relies on instantaneous scanning of a bar code, or a ZIP code. In 2016, Americans dropped 150 billion pieces into the USPS mail stream, and the sortation machinery looked at every one of those pieces and took a quick picture of the bar code or ZIP.

Until recently, those images were probably trashed a nano-second later. But then someone, a marketer, an engineer, a postal clerk, thought, “Hey, we took a picture, let’s post it!” Pardon the pun.

Automation machinery scans the incoming letter-sized mail.

Thus, the invention of Informed Delivery.

Every day, we at our household, receive an email from the USPS advising us of letter-sized mail making its way to us. The email includes an individual JPG of each piece, in black and white.

Now, you may feel that this is a weak attempt, a grasping at straws by a struggling old school business attempting to fight the digital tides. To me, it is enlightened genius. In a move that is worthy of a jiu jitsu artist’s praise, the USPS is using the power of digital to elevate its analog medium.

Every day a USPS email sends a photo album of coming mail.

Christmas Comes Early
For people at home, Informed Delivery may eliminate the excitement and anticipation of walking to the mailbox. ‘Kind of like peeking at your Christmas presents under the tree a few days before the event. Still, the service lets you know that a letter, check or invoice you are waiting for is definitely on the way. It also allows you to look at your mailbox, or mail-on-hold while you are out of town. ‘Kind of like scanning your voice mail–and you know you do that.

Many Happy Returns
Direct marketers will love Informed Delivery. Rather than waiting for the physical replies to show up from their latest mailing, they can see the reply envelopes as soon as the consumer drops it back in the mail. Admittedly, marketers can get digital reports now of bar coded reply mail, but Informed Delivery shows which replies, as there may be many outgoing mailings occurring simultaneously.

The USPS harnesses a digital app…who knew??

A Stronger Pitch
Every marketer considers the orchestration of messaging. We want to integrate email, social media and direct mail to complement a retail sales event. Informed Delivery alerts consumers by email of a coming promotion. The front of the envelope is the ideal canvas for the first tease of the event.

Intelligence At HQ
It should be pointed out, that if I have a dashboard of my incoming mail, so does the USPS. While you may worry that the USPS knows what I get by mail, I don’t. But if postal reform ever does get passed, the USPS may be able to offer user privileges to recipients based on the volumes of mail received. After all, if you do receive a lot of mail, you are a likely advocate of mail delivery, and to the USPS, that’s a high-five.

Kudos to the USPS on this latest innovation.  My bet is that as it takes hold, it will be leveraged, much to the benefit of one of America’s oldest and revered institutions.

Thanks for reading and sharing! If you want to see the Informed Delivery package, click on this!

(All pictures shamelessly taken from the USPS email and my personal portal.)

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direct mail, Economics, Fundraising, Marketing, USPS

The Mysterious Cost To Raise A Dollar

The tiny silver disc leapt from the shelf.

The convolution of three events today raised my antenna that there is a superior organizing force out there that is directing our path as we hurtle through space.

As I was cleaning off our bookshelf, a small battery dropped to the desk. These are the tiny nickel-cadmium dots that we find in cameras and calculators. Not the larger lithium incendiary bombs that we have in our laptops and hover boards.

The calculator that failed to light up.

The battery was all that was left of a calculator I tried to resuscitate a few months ago. When the machine didn’t light up, I undid about 9 tiny screws to retrieve the battery.  As I popped off the back, the entire calculator sprung into a hundred pieces of keys, buttons and circuit board.  Incalculable.   I saved the battery to take into the hardware store for a replacement, just in case the calculator could be reassembled.

The next thing that happened was while emptying out the washing machine, we discovered that I had left my Moleskine diary in my shirt pocket. We retrieved the diary cover, very soggy, and found the rest of its contents spread like a million flakes of oatmeal over all our clothes. So much for keeping notes on paper.

A misadventure, attempting to extract the battery for replacement.

As the morning progressed, Lonny the mailman came by, and stuffed our mailbox with lots of missives from people we don’t know, but asking for money. The largest piece in the delivery was a giant, lumpy, shiny, pebbled envelope from Disabled Veterans National Foundation.

The DVNF package was an exceptional “Flat”: 12″ x 15″.   So huge that all the other mail was folded in with it.

In direct mail, size counts.  So I opened it immediately to find, mirabile dictu––another calculator!  And—- another diary!  Wow.  I am completed.

The Mystery of Fundraising By Mail

After admitting that the USPS may be a supernatural force, most would ponder the imponderable: how does DVNF get away with sending out calculators, books and notepads, and expect to earn any money for their cause?

A “max flat” the 12 x 15 kit is shiny, pebbled and lumpy. It was folded to fit the mailbox.

That, dear reader, is one of the great mysteries of direct mail fundraising, and one that I will unravel for you now.  All you need to know is what the package really costs, response rate and average dollar gift amount.

To calculate the cost, I first took the kit down to the USPS post office for an official weighing.   Ranjit asked with a jaded smile on his face, “Why?  Do you intend to sue them?”

“No.  I want to calculate their postage, and how much this whole thing cost in the mail.”

Ranjit replied, “It’s non-profit, but don’t kid yourself, they are making money.”

I pulled out the new calculator and said, “Look at this!  That’s gotta cost a buck anyway…”

Ranjit smirked, “Nope.  Twenty cents.  About $2 dollars a pound. It’s from China.”  We weighed it: 3.3 ounces.  “That works out to 40 cents, ” I figured.  Ranjit countered, “OK so maybe $1 dollar a pound, that’s 20 cents.”

A new pocket diary, calculator, memo pad and pen, all personalized.

I stared at him as I pondered that number.  At the same time Ranjit extended his arm across the counter to flash a beautiful bejeweled wristwatch, sparkling in buttons, numbers, dials, and a bright yellow face.  “How much do you think this cost?”  He smiled.

“Uh, I don’t know.  Ten bucks?  A nickel?   79 cents?”

“Close.  It cost me $2 dollars.  Made in China. I bought 5 for $10 bucks, each a different color, for every day at work.”

Smitten with this new-found knowledge of international commerce, I bid him a good day and took my 20-cent calculator back to the car.

The whole mail kit, which included the calculator, the notebook, DVNF pen and some letters and envelopes weighed 9.1 ounces.  According to the USPS, this Flat was part of a 3-digit automation scheme, so I estimate the non-profit postage was about $0.59 a piece.

This pocket diary replaced the soggy Moleskine in a nick of time.

The envelope was made in China, as was the notebook.  Without asking, one can only guess that the components all assembled, shipping included, must have cost around $2 dollars.  Add another 50 cents for the 5-way match on name (envelope, calculator, notebook, donor form and notepad) and you have a kit that surely cost over $3 dollars to put in the mail.

And Now, Using The New Calculator:

That’s $3,000/m for you printers out there keeping score.

The donor form offers a $2.50 check as a tempting diversion. But they want $15-$25. Go figure.

When most mail kits ring in around $0.35 cents each, $3 dollars is a hefty challenge.   In their calculations DVNF finds a breakeven point by dividing the total cost of the kit by the average gift amount.   Looking at their donor card, they suggest a gift of $15-$25.  Taking the lower end, their breakeven response is $3/$15 = 20% response.  At the higher end, 12% response.

12% – 20% response is a steep hill.   This particular charity is known for its high fundraising costs.  According to Charity Navigator their fundraising efficiency is $0.71.  That means for every dollar raised, they spent 71 cents.

For this package, that translates to $3/.71 = $4.23 raised for every piece mailed.

If their average gift is $15, then their response rate would be $4.23/$15 = 28.2%.

And at $25, the response is 16.9%.

There’s no way to be certain, and DVNF is unlikely to share their response results.  But the package itself is a donor acquisition kit.  That is, a high pressure sales pitch to get a new donor.   If indeed it did generate a 28.2% response rate, with a gift of $15, the cost per new donor is:  ($4.23-$3.00)/28.2% = $4.36, which is pretty darn good, if not downright incredible.

It also follows that every new donor will be repeatedly contacted for further donations, which over time, leads to a real surplus, destined for program expenses that support the disabled veterans.

 

Thanks for grinding through these numbers with me!  Please note that Disabled Veterans National Foundation should not be confused with Disabled American Veterans.

 

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Culture, direct mail, Marketing

USPS: It’s Worth The Weight

Flipping through old photo albums is a fearsome task. We used to look better. The forces of gravity and time didn’t seem so obvious.

The post office isn’t immune from these effects either, but it is still eye-opening to see how direct mail has aged with some elegance.

Direct mail dropped 22% in the past ten years, but First Class dropped even more: 37%.

I took a moment to compare 2016 USPS results against 2006. If you are a USPS employee, a printer, or a person who lives by the mailbox, read on.  By the way, I converted these to a normal calendar year.

We all associate the USPS with letter mail: invoices, statements, and personal mail. This past year, the USPS delivered 62 billion First Class letters. Ten years ago– 98 billion letters…a 37% drop in personal mail.

On the other hand, direct mail only dropped 23 billion pieces, or 22%.

But here is where direct marketers have managed to carve out a path to serve some 150 million homes and businesses with advertising every day.

Direct mailers have managed to make a respectable living with the USPS by slimming down. While the rest of the world has acknowledged that our bodies are bigger than in the past, direct mail has successfully dropped a few sizes.

To wit: in 2006, the average piece of direct mail weighed 1.86 ounces.  By last year, that had slipped 15% to 1.55 ounces.

Direct Mail has slimmed down in the past decade.

This may not seem like a big deal, but it reveals a lot about the reading public.  Direct mail designers have essentially cut down on paper and ink.

Envelopes are smaller, and contain fewer pieces.  In fact, Flats, which are larger than 6-1/8″ by 11-1/2″, dropped a staggering 51% in the last 10 years, down from 13 billion pieces to 6.3 billion.

The landfill protesters and tree huggers have to be thrilled.  But despite their glee, most direct mail is entirely recyclable, and much of it is made from post consumer waste paper anyway.

The super-sized Flat, large enough to hold a placemat is fading.

The rapid weight loss has provided a financial dividend for the USPS.  In 2006, the revenue per ounce was $0.107.  Ten years later it is $0.139, which is 12 points better than the rate of inflation.

The irony of the slimmed-down direct mail piece is that the USPS charges the same postage for a 1-ounce letter as it does for 3-1/2 ounces.  This would be the same as your favorite airline designing all the seats for a 300-pound row mate.  You know that is not the case, but the USPS is much more generous.

Given that allowance, it would make sense for direct mail designers to plump up their product.  Postage is the highest proportion of the in-mail cost, yet it is not leveraged.  Instead, parsimonious design has cut out the frills and treats that used to adorn productive direct mail.

My trips to the mailbox are disappointing.  It’s all two-dimensional post cards.

New age designers have lost the urge to embellish the kit, forsaking the 3.5 ounce opportunity to “load it up” like these.

What you don’t see anymore are great works of art that pleased and intrigued the reader.

The stuffed envelopes have been flattened.  The labels and stickers are gone.  The samples are gone.  The origami is muted.  Member cards, scrapped.  The shiny foils no longer announce a prize.  The extra letters and testimonials are removed.  The textures are smooth and sterile.  Reply envelopes?  Naah….go to the website.  Brochure?  Website.   Buck slip?  Phifff–what’s a buck slip??

So direct mail has entered its age of demur elegance: slim, sleek and stylistically boring, but somehow pleasing to the agency head who doesn’t absorb sentences longer than a gnat’s breath.

An experienced designer once told me, “you will make more money by adding to a kit than you will by taking away.”  What would he think today?

But let’s give the contemporary designer their kudos.  They have won the war on weight, but they have lost their way on  beauty and bucks.

 

Thanks for reading!  Please share with your direct mail associates.   Just like people who have rediscovered the beauty of vinyl records, there will be a time when “gangbuster” direct mail will return. 

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direct mail, Marketing

The Roots of Customer Loyalty

Version 5

A 100-year-old brand backed by its owner.

We all have brand imprints that are part of our core. Coke, Kellogg, General Electric, Disney — these are trusted, bedrock brands we’ve known since birth.  The most valuable brands today would be Apple, Google, Facebook–but not necessarily the most trusted, yet.

Then, there are those brands which court obscurity.  Names like Zenith, Woolworths, IGA, Rexall…all in their time were once powerhouses.

haband-252-1

A conventional envelope kit with 50 inserts, weighing in at only 3.2 ounces… a postal bargain.

So how is it that a company called Haband has 5,000,000 customers?

I wondered this puzzle when I received their mailing last week.  Haband is a mailorder merchandiser founded in 1915 by two gentlemen: M. Habernickel and John Anderson.  They sold ties to bankers in Manhattan.

Talk about product selection! Who wears ties today?

haband-262

Clothing and footwear replace the original Haband product line: neck ties for bankers.

From their early beginnings the Haband brand grew to offer general merchandise, mostly, but not limited to, clothing.

Their style choices are not for everyone, and you would be right to suggest that your parents and grand parents would be more likely targets.  Put another way, getting a Haband mailing is like getting an AARP mailing, only much later.

The secret to Haband’s success is the core… the essence of direct mail.  A champion writes a letter to a customer, providing personal assurance about the desirability of a product.

Version 4

The letter is central to the offer, and in this case, Duke’s guarantee of satisfaction.

Duke Habernickel is, I am guessing, the son or grandson of the fabled company’s co-founder.

The products in question range from duck boots to space heaters, from fleece pants to “ForeverSharp” razors.  The broad selection is what I might have found in my late parents’ closets when we moved them into more modest and permanent surroundings.

haband-258

Free gifts: knife, watch and pen. Suitable for any Haband customer!

But when it comes to direct marketing, what sells, and what doesn’t sell is more than personal taste.  I have learned that my opinion does not count.

This is a platinum rule, maybe even titanium.  Put another way, just because I wouldn’t buy it doesn’t mean that no one else will buy it.

Au contraire!

Haband is successful because it knows its customer very well, and the customer has a reciprocal expectation and trust in Haband.  Thus, Duke Habernickel signs his name to a letter introducing no less than 46 items for purchase, plus another 3 free gift items to sweeten the deal.

The Haband mailing piece is itself unusual in today’s environment.   With so many products you may have expected a catalog.

Instead, it is a low-color, 6 x 10 envelope stuffed with 47 individual sell sheets, plus letter and reply envelope.

haband-264

The kit delivers 47 product sell sheets, from shoes to sharpeners.

The two-sided, 4-color sell sheets each contain the entire deal, embroidered with enthusiastic sell copy, and anchored with individual order form.  They are printed on the lightest coated paper stock available.

While you may question the flimsy medium, Haband gets the 47-piece job done in just under 3.3 ounces, thereby capturing the lowest possible postage rate.  By the square inch, each product has a digest-sized page of display.  Pretty smart.

Duke’s letter is verbose, jumbled, effervescent, and personable.  It is traditional, and lacks the slickness of general agency creative.  The copy is laced with 28 “you’s and your’s” in addition to 8 personal references by name.  More significant however are 7 “me’s, I’s and my’s” illustrating Duke Habernickel’s personal investment in the relationship.

Version 2

It would be a challenge for many marketers to claim being “your friend”, but that’s what counts for Haband customers.

For some, the effect may be unctuous, but if you are a Haband customer, you are Duke’s customer, and comfortable with it.  The personal touch is expected and welcomed.

The roots of customer loyalty are founded in matching customer expectations, tone and manner.  Whoever, and wherever those 5,000,000 buyers may be, they will not be discounted as strangers at Haband.

 

Thanks for reading! I believe this is the first Haband piece I have ever received.  I must ask serious questions about what demographic group I have now joined.

 

 

 

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direct mail, Marketing

Walgreens Rolls Up Your Sleeve

Walgreens 227

This may be the best traffic builder ever.

This week we received a notice from Walgreens (at the corner of happy and healthy). It’s only August, but they are now targeting my left arm for a flu shot.

This is the painless inoculation that fends off the swarms of flu virus planned to put me in bed next February.

What is not painless, and what Walgreens has figured out, is the paperwork. The mailer includes the consent form that normally we fill out at the scene.

The pocket encloses the nefarious consent form we normally fill out beside the ointments display.

The pocket encloses the nefarious consent form we normally fill out beside the ointments display.

Kudos to the marketer at this famed drug chain who saw the chance to streamline the process, save a few minutes, boost traffic, and promote sales all at the same time.

Truly, the flu shot appointment is drudgery. Who wants to sit behind a curtain in a tiny corner getting stabbed? Who wants to fill out a two-sided form on a clip board, standing beside the first aid display?

Walgreens provides the form, by mail. Bring it in, and –poink– you’re ready for the needle. The only question to answer, “Which arm?”

This annual campaign is one of the easiest to master, and I am surprised more drug chains don’t use it. Selecting a list targeted at seniors is easier than falling asleep in front of the TV.

The creation of the package is simple: envelope and form. In this case, the programmers could have stepped up, and matched our street address to the closest Walgreens store, included its address and a map, but they didn’t.

Walgreens 230 (1)

The consent form is personalized. Walgreens could have included store# and address without much fuss.

They could have also matched our rewards account and popped a little note in the kit to personalize the event, but bedside manners may not be first and foremost in their minds.

Costwise, the investment is 45 cents a piece. With a response rate of 30%, the cost per visit is $1.50 ($0.45/30% = $1.50). Given that most retail traffic builders pull far less response, and usually offer discounts on top of that, this promotion is a winner hands down.

Walgreens gets the flushot revenue from Medicare, plus an in-person visit from a retail customer.

Walgreens 233 copy

Surprisingly, the incentive is buried here: a $2,000,000 donation to the U.N., and an important deadline. Shoulda-woulda-coulda!

Passing The Zig Ziglar Test
This is a moment to validate the Walgreens mailer according to the late sales counsellor Zig Ziglar’s test for sales viability.

He posited, quite astutely, that there were five road blocks to making a sale. The Walgreens promotion knocks down each of these objections:

1. No Need– The target list is to 65-year-olds, prime flu victims
2. No Desire– Walgreens streamlines the paperwork, and further offers a donation to the United Nations Foundation for every inoculation
3. No Money– Virtually free: costs are covered by Medicare and most health insurance
4. No Rush– The offer does have a deadline for eligible donations, but Walgreens could have pushed this harder. See the fine print.
5. No Trust– Hey, this Walgreens–America’s favorite drug store!

Overall, with a few tweaks, a great, timely promotion.

I’ll look for the bottom line next February.

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