You may recall that last week, we wrote about the Testing and Innovation Scheme, which gives businesses the chance to test while reducing the overall investment in new business activities. This week, it’s about fuelling business growth.
Growth is what all businesses are aiming for. Increasing your customer base, improving turnover, higher revenue and more profit. Advertising is a big part of achieving that – if your business gets the communication across to the right audience at the right moment, you’re on the right track to gaining a new customer. And Direct Mail can help you achieve it.
That’s right! Thanks to the First-time User Scheme, and the Advertising Growth and Volume Incentive Schemes by Royal Mail, you get a helping hand growing your business with Direct Mail.
What is the benefit of growing your business with Direct Mail?
Direct Mail is a valuable tool in the marketing channel mix, contributing to brand awareness and sales growth.
Did you know?
- Campaigns including mail were 27% more likely to deliver top ranking sales performance than campaigns that didn’t1
- 57% of recipients of valued Direct Mail thought more positively about the sender’s brand. 60% kept the brand top of mind, and 58% thought of using the sender’s business2
- Campaigns with mail achieve 2x market share growth3
We think those are pretty impressive stats and that these incentive schemes are definitely worth finding out more about!
Never used Advertising Mail? The First Time User Scheme is there to help you grow.
Businesses who’ve not used advertising mail before or haven’t used it in the last two years, can take advantage of a postal discount for the first three advertising campaigns sent over a 12-month period.
Here’s the deal:
- Businesses need to send a minimum of 10,000 items per campaign
- Machine readable letters get a 2.5p discount; heavy Large Letters receive up to 10.9p off
- The discount applies to all additional mail posted above the baseline agreed with Royal Mail
- To qualify, mailings should be sent through an Access Operators such as Citipost Mail, or directly with Royal Mail
- All discounts will be paid through postage credits.
Sounds like a great opportunity to boost business growth!
Next up, the advertising growth incentive. How does this work?
The incentive runs over a 12-month period, and is based on any additional advertising mail you send over and above a pre-agreed ‘baseline’ volume.
- Any additional advertising mail you send via an Access Operator such as Citipost Mail or directly via Royal Mail gets a postal discount of up to 15%.
- You earn between 2.5p for machine readable letters and 10.9p for heavy large letters off the standard mail price.
- You receive the discounts as postal credits to be used against future campaigns.
If your business sends out new, additional advertising mail volume over a 12-month period, this incentive is worth looking into. To be eligible, you would need to send a minimum of 150,000 standard letters or 75,000 large letters of additional volume during this time.
The ‘baseline’ volume will be determined by Royal Mail, based on your historic advertising mail volumes.
What happens after year one?
After enjoying a year of growth and receiving postal credits, a second incentive called the “Advertising Volume Commitment Incentive Scheme” is available. This starts in year two and its purpose is to support you in maintaining the same volume of mail items as in the first year.
It works in a similar way, rewarding you for additional activity. All the extra mail you sent in year one will earn up to 7.5% mail discount in year two. So, any new mail you send over and above the volume of year one will earn up to double that at 15%!
Sounds great, doesn’t it? To take advantage of the volume incentive, you have to start with the growth incentive first and send at least the same volume of advertising mail as in the first year of the growth incentive. As before, any discounts will be paid as postal credits.
And what’s more, if you want to continue in year three you can, the advertising volume incentive runs over a 24-month period. Again, mail discounts apply to any extra volume sent in year two and any new volume in year three.
A B2C example
Still need a little convincing whether this is right for your business? Here’s a great B2C example for you. A women’s fashion e-tailer used mail to acquire new prospects. They tested a concertina leaflet to showcase more products and used the growth incentive to grow volumes by 3.1m items. The customer is now using the volume commitment incentive to grow again this year.
Go for growth using Direct Mail and Citipost Mail
Want to grow your business using Direct Mail? Call us on 0203 2600 240 and we’d be happy to help you through the application process.
For more information about the Advertising Growth and Volume Commitment Incentive Scheme, click here.
Looking for other incentives that could help your business?
If you are, keep an eye out for our next incentive blog post, looking at the Publishing Mail Incentives.
Alternatively, if you want to ‘test and learn’ your way into growth, take a look at our earlier blog post on the “Testing and Innovation” Incentive.
1 Royal Mail Marketreach, The Private Life of Mail, 2015
2 Base: 3,000. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014
3 When compared to campaigns without mail. Source: A meta-analysis by Peter Field on the IPA Databank, 2014