Research-driven models improve targeting of direct mail

John Reid, MORI, and Martin Boddy, MACON, show how modelling purchase propensity with direct mail receptiveness leads to cost-effective targeting

John Reid and Martin Boddy

The Royal Mail aims to position itself to major business users as a media owner, competing in the advertising market. This is because direct mail campaign volumes are under pressure from the ever-growing range of alternative media. Mass marketing and mass direct-mail campaigns are becoming less common, with smaller, more targeted and therefore more cost-effective activities taking their place.

To compete on an equal footing with other media in the financial services sector the Royal Mail needs to understand more about the performance of its own medium (direct mail) in generating sales of financial services products. It needs to be able to advise clients on the best addresses to target (from customer databases or the Electoral Roll) for a particular product mailing, just as the owner of a newspaper could compare a readership profile with that for the product (for example using TGI).