Blog Posts Archive - Page 2 of 26

2022 Retail TrendWatch Series: Know Your Customers

In our recent report — 2022 Retail TrendWatch – we uncovered insight from 1,840 consumers and 268 home retailers. Consumers provided their thoughts on spending priorities and buying outlooks for 2022, while retailers shared their two cents on the biggest marketing and operational challenges in 2022.

Relevancy + Immediacy

Don’t take loyalty for granted. Legacy buying decisions can be interrupted by several factors, so you need to give people a clear, compelling reason to keep coming back.

Of course, you have your own disruption to contend with. Supply chain complexities might necessitate a pivot from product to category-level advertising so you can cultivate and meet demand without being hampered by logistics.

People across all demographics are shopping more online:

30% of people plan to increase online spending — this is particularly driven by millennial parents (39%) and Gen Z (43%)

But that doesn’t mean they’re sticking just to the screen:

36% plan to increase in-store spending, including 45% of Gen Z and 46% of millennial parents

Be ready to meet people in all the places they shop:

50% are more likely to purchase from a retailer that reaches out at the right time when there is a need for a product or service

Learn more about Mobile + Mailbox in our next blog. Or read about Do It Yourself + Treat Yourself and Value + Values. You can also download the full report for more perspective, stats, action items and recommendations.

Matthew Tilley is executive director of marketing for Vericast and leads content marketing for the company. He has more than 20 years of experience in digital advertising and consumer promotions to develop, communicate and distribute ideas to make modern marketers more effective.

Woman looking a product at shelf in the store

2022 Retail TrendWatch Series: Do Your Values Match Your Value?

In our recent report — 2022 Retail TrendWatch — we uncovered insight from 1,840 consumers and 268 home retailers. Consumers provided their thoughts on spending priorities and buying outlook for 2022, while retailers shared their two cents on the biggest marketing and operational challenges in 2022.

Value + Values

People want to make their money stretches further. Factors like rising prices and supply chain delays (particularly across industries like restaurants and grocery) will continue to influence buying decisions. There’s an opportunity for savvy brands not only to compel people to try new products but to switch retailers altogether.

Our consumer insight survey found:

55% of people are willing to try a new retailer or provider when purchasing a product or service for their home
38% of people use coupons, discounts or deals to plan their shopping list

Our retail industry survey found:

65% of advertisers say that supply issues are affecting their company’s advertising plans
37% of home retailers cite finding parts or products needed as one of their customers’ biggest challenges, as well as extensive delays from service providers (34%)
32% of advertisers think a big challenge will be people switching products because their preferred product isn’t available

People also continue to seek retailers that appeal to their ethical priorities and individual identity. We can expect to see an increase in values-based marketing and people will come to expect their favorite brands to take a position on important issues.

This means retailers shouldn’t forget to make the most of their values.

Our consumer insight survey found:

Ethics- and values-based buying decisions are of particular importance to Gen Z, who prioritize social and environmental responsibility (17%) more than other generations (12%)

Conversely, our retail industry survey found:

37% of advertisers say social and environmental responsibility are important factors for people selecting a new retailer or service provider

Choosing where to shop comes down to more than just what’s in stock, on time and within budget. The first step is understanding how to support consumers’ values, and then creating an ethical balance with deals to meet the financial needs of cautious, budget-conscious customers.

Learn more about Relevancy + Immediacy in our next blog. Or read about Do It Yourself + Treat Yourself. You can also download the full report for more perspective, stats action items and recommendations.

Direct Mail Is Having a Moment — Seize It

Record-high inflation is driving up prices across the board and dampening demand in the marketplace, making it necessary for many businesses to pivot their marketing strategies. Of course, going silent isn’t an option if the goal is to remain part of everyday purchase decisions.

So how can marketers achieve top-of-mind awareness? The mailbox offers an ideal path to cut through the clutter and gain the undivided attention of valuable customers and household decision-makers. With digital advertising soaring 35 percent in 2021 and saturating consumers with marketing messages, direct mail is enjoying its time in the spotlight.

People find coupons in their mail incredibly useful. Vericast’s Consumer Intel Report data revealed that:

70% of consumers compare prices between brands using the printed store circular (increases to 78% of millennials, 86% of parents, 88% of millennial parents and 79% of affluent consumers, significantly higher versus all consumers)
49% of consumers miss the printed grocery store circular on weeks when it isn’t delivered (increases to 62% for parents overall and millennial parents, significantly higher versus all consumers)

Now is a great time to seize the opportunity and invest in your direct mail marketing strategy. That does not mean you have to cut out all other marketing channels — direct mail can easily complement media across the board. If the increased consumer interest and receptivity aren’t enough, here are three more reasons to embrace direct mail as part of your post-pandemic marketing plan:

1. It’s an unsaturated environment

The mailbox isn’t as noisy as the email inbox or the social media feed. That’s the beauty of direct mail marketing: There’s less competition for people’s attention, and your audience is open to receiving it. Vericast research shows that 70 percent of consumers read or look at mail ads. And they keep direct mail ads they find interesting for 14.5 days on average. According to our Deals & Coupons Report, 44 percent of consumers “feel good about a coupon or discount that comes in the mail because it’s an exclusive offer that not everyone receives.”

While it is highly scalable from local to national coverage, direct mail can target local neighborhoods around key store locations. For example, Save Direct Mail provides access to over 112 million households across the entire country. Yet, ad inserts can be customized to resonate with the local audience.

There’s something to be said for getting a piece of mail. It’s tactile, which can leave an impression on the recipient that strengthens recall and brand awareness. With the right message, you have a tremendous opportunity to engage people with a mailer — now or in the future.

2. It’s able to plug in anywhere

Every household checks the mail. People might not read everything they receive, but they certainly sort through it. Vericast research also found 36 percent of consumers want both paper and digital coupons and discounts. So, despite the growing popularity of digital coupons, the mailbox is — more than ever — a valuable and versatile source of information.

Direct mail integrates seamlessly with other marketing tactics, and it can be an invaluable partner as part of an omnichannel marketing strategy. Let’s say you send out a mailer and then follow up with recipients via an email reminder. From there, you could decide to keep things going with a display ad and a little retargeting. Each layer of this approach amplifies an overall marketing campaign and can drive more consumers to your business.

Direct mail offers an effective way to augment a digital ad campaign or be the hero, with emails or display advertising directing attention to a special message delivered to physical mailboxes. No matter the situation, a direct mail marketing strategy can integrate with and amplify your current campaign.

3. Its ROI is swift and substantial

Some people assume direct mail campaigns have long lead times but building a campaign doesn’t have to be a lengthy process. The right collaborator can help develop an efficient, affordable and customized mail strategy.

With the right partner, you can plan, create, and implement a direct mail marketing strategy in just a few short weeks. Even if you don’t have a direct mail campaign in your plans yet, you can get one up and running in no time.

There’s no need to break the bank, either. You might think direct mail is an expensive marketing channel, but you can manage direct mail marketing costs quite a bit with a few minor adjustments. For example, using a vendor that leverages economies of scale for production and distribution can save substantial money on a campaign. With the right partner, there are ways to customize messages to be more affordable.

As with any other modern marketing channel, direct mail allows for personalization — and we’re not just talking about adding a person’s name. With a flexible partner and good data, you can send certain messages to specific neighborhoods or households based on demographics or purchase behavior. Layering in lifestyles, behaviors, hobbies and interests to further segment an audience enables the creation of truly personalized direct mail marketing campaigns or offers specific to each subset of your customer base.

Vericast Dynamic Postcards use predictive intelligence with tailored messages for powerful 1:1 personalized offers, messages, and images to each household to drive strong responses. Solo direct mail is even more targeted, allowing you to engage exclusively the high-value households you want.

Now Is the Time

Emails, display ads, and mobile messaging can alert consumers to products currently in stock, but direct mail tends to have a different vibe than digital messaging.

With direct mail, you’re putting valuable and tangible information in the hands of relevant households and buyers. It can still encourage people to shop — particularly as consumers make purchases in different ways amid rising prices.

Direct mail has a reliable place in any marketing plan. But during this opportunity to reset and refresh your marketing strategy, direct mail is the option you shouldn’t ignore. For more insight on how to boost your direct mail impact, download our infographic, “Raise Response + ROI in a Big Way With Save Direct Mail.”

As part of the Vericast marketing team, Megan O’Gorden specializes in the CPG promotions landscape. She has 20+ years of experience in product storytelling and go-to-market execution, helping clients discover and utilize solutions that drive consumer engagement and positive business results.

Woman and child each on devices wearing headsets

Bringing Accessible Internet to All

Closing the Digital Divide

To address the need for accessibility, the White House funded ACP, The Affordable Connectivity Program (previously titled EBB-Emergency Broadband Benefit Program). The program offers discounts of up to $30/month on internet service delivered by a participating Internet Service Provider (ISP). Most major providers have opted-in, covering 80% of the U.S. population, according to a White House briefing. Many of the major ISPs have also created service plans that the ACP discount fully covers.

The White House estimates that 48 million or 40% of U.S. households may be eligible for ACP benefits, yet only approximately 12.5 million have signed up to participate as of late June 2022 reports the ACP Enrollment and Claims tracker. With inflation at a startling 8.3% , more consumers are expected to take advantage of the program to mitigate the rising cost of living, gas prices and grocery bills.

Awareness of broadband subsidies and benefits seem to vary widely, as noted in an AT&T survey reported by Fierce Telecom in January 2022 that asked people about their awareness of the EBB program. The October 2021 survey reported that only 12% of consumers were aware of the EBB program and applied, while 13% reported being aware but did not apply. Awareness also varied by state. For instance, 61% of consumers in Kansas knew about the program, compared to only 45% in Kentucky.

The goal is to make more households aware of this valuable program, but also to motivate them to sign up.

Engaging Eligible Households

Use the Right Media: The best way to engage these consumers is to identify and reach them with a targeted message in the geographies where internet services are available. Many telecoms rely on TV as the best way to deliver an effective message, but according to Prosper Insights & Analytics™, 59% of telecom purchase influence comes from print and digital.
Make it Personal: Consumers have consistently indicated they are more apt to engage with a brand that personalizes its message. Utilizing the same offers and messaging as non-ACP campaigns is likely not going to get the attention if a consumer does not think they can afford the service. Households that have yet to sign up require more information on the program and its benefits.
Deliver a Holistic Message: Vericast Awareness-to-Action studies (fielded by Prosper Insights & Analytics in 2020 and 2021) confirm that 34% of consumers are more likely to buy from a brand that provides a consistent experience across interactions. A holistic, strategic approach to planning with a unified platform is needed to successfully engage ACP eligible consumers. A platform such as Vericast’s Illumis™ uses billions of non-cookie-reliant data points anchored to the household to deliver a seamless experience and message with both print and digital media.
Incorporate the Power of Print: Direct mail that can deliver messages at the household level has staying power and provides an informative experience that will live in the house longer than digital ads. In fact, 72% of consumers read or look at ads that come in the mail and on average, hold on to the piece for 14 days (Vericast Awareness-to-Action Study).

Using a singular approach to deliver the right message allows companies to engage with ACP-eligible households and inform them of their internet options, while we work to bring affordable, reliable internet to all.

Don’t miss out on this opportunity to connect with more of your audience. Contact us today and learn how to reach these ACP-eligible consumers.

For nearly two decades, Jill Morgan has helped brands strategically connect with their consumers. She has spent the last 13 years at Vericast, currently working in client strategy, primarily supporting TMT (Telecom, Media and Technology) and Retail Channel clients. Jill is responsible for creating data-driven thought leadership to develop multi-channel solutions to reach the right consumers at the right time.

2022 Retail TrendWatch Series: Splurging, Saving and Saying I’ll Do It Myself

In our recent report — 2022 Retail TrendWatch — we uncovered insight from 1,840 consumers and 268 home retailers and service providers. Consumers provided their thoughts on spending priorities and buying outlooks for 2022, while retailers shared their two cents on the biggest marketing and operational challenges.

People are spending, but retailers need to give them a reason to splurge — now more than ever.

77% of advertisers say businesses need to give consumers stronger reasons to purchase
81% of advertisers say consumers are looking for deals and discounts more than in the past

Do it yourself + treat yourself

In home retail, DIY is on the upswing, and money saved on big projects is slated to be spent elsewhere.

“I’ll just do it myself” — said by both frugal and frustrated consumers

More people (26%) are doing more home repair, maintenance or improvement projects themselves versus hiring contractors or service providers.

When asked why they plan to DIY:

57% of people said it was more expensive to hire outside contractor or service providers
51% said it was easy to complete projects by watching how-to videos or reading online articles
19% of people said it was both taking too long to find contractors or service providers and when they do find a contractor or service provider, it takes too long for them to complete the job

“My home is my happy place”

Forty-six percent of people planning to purchase products or services for their home primarily want to enhance the enjoyment, comfort and beauty of their home, with repair or maintenance a secondary priority. The baby boomer generation is more focused on repairs and maintenance (53%).

Affluents are investing in outdoor design and remodeling – landscape, deck or patio renovations ranked at 22 percent, whereas parents of all ages are focusing on paint at 20 percent.

It’s no surprise that Gen Z is spending their dollars on electronics (24%) while Millennials spend on furniture (24%), mostly likely for family living.

“Save then spend or spend then save?”

Money saved could go toward bigger purchases down the road, with 29 percent of people delaying purchases to save money in the next three months

People still just wanna have fun, with nearly a third (27%) concerned about having money to spend on fun purchases, dining out and treats

What’s the blueprint?

While you can expect spending to scale back as our inflationary times continue, know that people are receptive to your brand, deals and products if they fit their lifestyle and budget.

People are looking for deals on the luxuries as they treat themselves. Stretching a dollar will mean more with every trip to the store.

Learn more about Value + Values in our next blog. You can also download the full report for more perspective, stats action items, and recommendations.

Dave Cesaro is executive director of client Strategy at Valassis, where he leads a team dedicated to providing insights and promotional advice to partners in the Retail, Grocery, and E-Commerce categories. Dave has more than twenty years of experience in advertising and direct marketing focusing on strategies that combine the world of online and offline media to engage consumers and drive them to act.

Make the Most of Direct Mail Marketing — Now and in the Future

Increased interest in direct mail presents a key opportunity to diversify your marketing efforts. With more than 81% of people in the United States always or sometimes working from home (February 2022 data from Gallup research), an increasing number of businesses are revisiting direct mail marketing — and for good reason. Mailboxes are rarely as cluttered as email inboxes, making it much easier to grab the attention of customers. But the real catalyst has been increased consumer interest.

As people continue working at home, the February 2022 Vericast Awareness-to-Action Study found that 71% of consumers and 68% of millennials regularly read direct mail ads. That’s a lot of eyes on your brand. The timing couldn’t be better to implement a direct mail marketing strategy to complement your existing efforts to drive awareness and sales. Implement the following ideas to build successful direct mail campaigns.

Access, analyze, and act on great data

When you know and understand your customers, it becomes that much easier to tailor a direct mail marketing campaign around their specific needs.

For example, the Vericast Consumer Intel Report revealed that 66% of all consumers use coupons they get in the mail, but the percentage is higher amongst millennials. Around 72% of millennials and 81% of millennial parents use coupons. Some of this traction around coupons might be because inflation hit a four-decade-high, driving up costs across the board – cost increases that could be offset with coupons – but there is also a growing trend for consumers to be more thoughtful about their spending.

Data can give you a glimpse into consumer preferences and the buyer’s journey, allowing for more relevant direct mail campaigns. You can offer the right promotion at the right time to the right person or the right neighborhood and can also have options to tailor your approach to specific households and their preferences. Each household or neighborhood will respond differently, so use a data-driven approach to build direct mail marketing practices that focus on relevant messaging and targeted media spending to drive results.

Make efficiency a central focus

One significant component of any direct mail marketing campaign is, naturally, the mail. That means printing, preparing, and delivering a promotion calls for partners that understand the importance of postage and distribution. Without a knowledgeable partner, the time and money involved in a marketing campaign can quickly balloon — and you could risk missing your target audience or window of opportunity altogether.

When evaluating a marketing partner, consider every facet of a direct mail marketing program, including:

Pricing
Format and availability of high-impact additions
Postage and timing
Print and paper quality
Address list quality
Incremental lists costs
Measurement

Capabilities are essential, especially when you want to vary your direct mail marketing tactics — perhaps when moving from a postcard to a solo mailer to a full-size 3D piece. But, this isn’t for the variety alone. Certain types of content are better suited for each stage of the buyer’s journey. For example, a cooperative piece of mail helps improve awareness in neighborhoods through saturation, while a solo delivery excels at personalized messaging.

There are partners, like Vericast, that provide turnkey direct mail solutions. In fact, our company has the only residential list with nearly 100% of U.S. addresses updated and mailed weekly. This provides more accurate mailings for clients.

Add omnichannel as a compliment

While a direct mail marketing campaign can stand on its own, it is often most effective when it’s one component of a broader omnichannel approach. A direct mailer can amplify digital or mobile marketing — or vice versa.

According to Vericast’s Awareness-to-Action Study, 47% of consumers like to receive offers in print and online so they don’t miss out on savings — and 62% of millennial parents agree. It’s all about encircling your desired customers with the ideal messaging at the right cadence and in various ways along multiple touchpoints to prompt conversions.

Choosing the right direct mail marketing partner

With the right direct mail marketing partner, you can take advantage of the medium in no time — and at a cost-effective rate with significant ROI.

Direct mail provides a tactile experience that appeals to consumers. As the effects of the pandemic ease and more people are finding a new normal in their buying habits, get your brand in front of consumers with printed promotions delivered directly to their homes. Just make sure your direct mail marketing strategy relies on good data, a strong partner, and a personalized call to action that sparks interest and delivers optimal sales.

Like almost any other marketing tactic, direct mail requires some effort and strategy on the front end to ensure the best results on the back end. Ideally, you would partner with a company that leverages strong data, rich consumer intelligence, and superior end-to-end execution.

If you’d like to learn more about the value of direct mail marketing for increased consumer engagement, download the “This Direct Mail Moment” ebook.

Woman sitting at home looking at her phone

How Do Your Personal Spending Habits Match Consumers’ in 2022?

We surveyed nearly 2,000 people on how the priorities and preferences driving their spending behaviors are evolving. We also surveyed 268 home retailer and service providers about their biggest advertising challenges and priorities for 2022. (If you missed it, read the full report here for some fascinating insights into a range of topics, including why social media advertising shouldn’t always be your top priority.)

In this blog, we’re going to use this research to show you how your buying habits stack up to your customers — to help you understand the people you’re selling to in new ways.

We’ll be focusing on three key areas:

The most popular financial concerns
Common money-saving moves
Shopping in-store vs. spending online

Let’s dive in.

How optimistic do you feel about the next six months?

How typical are your spending priorities? For an industry tasked with understanding the people we sell to, it can be a difficult question to answer as a marketer.

How optimistic do you feel about the next six months?

Optimistic

Neutral

Pessimistic

Most consumers in our 2022 Retail TrendWatch report feel optimistic about the next six months — particularly millennials, millennial parents and affluent shoppers. Click the other options for what others said.

That’s understandable! Twenty-nine percent of respondents to our survey note a mixture of optimism and pessimism about the next six months. Click the other options to see what others said.

Interesting — only about a fifth of consumers we surveyed feel the same. Baby boomers are the generational demographic that feel the most pessimistic. Click the other options to find out what others said.

What are your financial concerns this year?

We’ve weathered an enormous amount of economic uncertainty over the last two years — but that anxiety doesn’t manifest in uniform ways.

Financial concerns in 2022 span a wide variety of topics across different demographics and backgrounds. According to advertisers, the biggest challenge home retail consumers face is rising prices (56%), followed by lengthy delays to receive products (46%).

The more marketers and brands understand the differing economic anxieties across audience segments, the better they can tailor their messaging and marketing activities to stay top of mind across the whole buying journey.

What about you? What are your financial concerns this year? And how do your priorities compare to different consumer groups? (And remember — click multiple options to get the full picture).

What are your financial concerns this year?

Rising food prices

So are 48% of people — although baby boomers significantly more so, at 67%.

Increasing gas prices

You’re in good company. Forty-three percent of people are thinking about gas prices, with baby boomers particularly concerned at 62%.

Rising inflation

Two in five people (40%) are also concerned about rising inflation — though that number jumps to almost half of affluent people (those with a household income of $100k+) and 58% of baby boomers.

Everyday living expenses

Thirty-four percent of people are worried about everyday living expenses — although Gen X are the most concerned at 40%. Unsurprisingly, only 20% of affluent people worry about living costs.

Job security

Just 13% of people are concerned about job security this year — though millennials and Gen Z are more worried, at 21% and 20% respectively.

Having money to spend on fun purchases, dining out and treats

Nearly 30% are concerned about having money to spend on fun purchases, dining out and treats.

What are you doing to save money this year?

Financial anxieties are only one half of the equation. The thing really driving changes in behavior is what people do about it.

People are divided in the best ways to make their dollars stretch further. Forty-eight percent will notice and collect relevant advertising when they’re in-market to make a purchase for their home, while others will reallocate their spend across different categories.

What are you going to do to save money this year? Do they match your others plans? How could your marketing efforts adapt to the new buying habits of your audience? (Don’t forget to click multiple options to get the full picture).

What are you doing to save money this year?

Using coupons, discounts or deals to plan a shopping list

Forty-nine percent of baby boomers are planning to save money with coupons, discounts and deals — way above the average of 38% across all demographics

Delaying purchases

Patience is a virtue. But not for Gen Z — 15% plan to delay purchases compared with 29% overall.

Shopping more at discount retailers

Look for baby boomers in the aisles — 31% of whom are likely to shop more at discount retailers, vs. 25% of consumers overall.

Doing more research before making a purchase

A quarter of all people feel the same — though only 18% of Gen Z intend to do more research before buying.

Looking through printed ad inserts and circulars more often to find the best coupons and discounts

Twenty-three percent of people will hunt around for the best deals in print. Baby boomers are significantly more likely to at 30%.

Consolidating debt and evaluating investments

Fifteen percent of millennials and 17% of millennial parents are getting smart about debt. Meanwhile 21% of affluent people are considering how to make their investments work harder for them.

Where do you plan to spend your money?

After a period of radically reduced choice, people are rethinking how they allocate their budget between offline and online destinations.

There are a multitude of disruptive forces still at play, influencing people at check out: continued economic uncertainty, the rising cost of living, and ongoing supply chain limitations for brands.

Due to product shortages in particular, 47% are switching stores or buying products different from what they planned.

The key for advertisers to connect with people is to stay top of mind in purchasing moments — wherever they happen. What are your online and in-store spending intentions? How do they compare to your core audience? (Make sure to click around to get the full picture.).

How will you spend in-store compared to previous months?

The Same

Less

Younger shoppers will see you there. There’s a clear appetite for brick and mortar for 45% of Gen Z, 42% of millennials and 46% of millennial parents and 45% of parents overall.

Just like over half of baby boomers (55%), you’ll continue shopping in-store as much as you always have done.

You’re part of a rare group — just 18% of people are planning to spend less in-store in the coming months. Everyone else will either continue or increase their current spending in stores.

How will you spend with online retailers compared to previous months?

The Same

Less

There’s a diverse mix at play — along with flashing the cash in-store, Gen Z and parents are the most likely to increase their online spending, at 43% and 39%, respectively.

You’re among the 46% of people planning to keep digital spending steady — along with sticking to their online habits, baby boomers lead the pack here at 55%.

Almost a quarter of people are planning to spend less online — significantly more than shoppers cutting in-store spending.

Elevate your strategy with empathy

It’s all too easy for marketers to think academically about shopping behaviors. But it’s important to take a step back and put yourself in other’s shoes. If you can understand how your own plans going forward align or differ, you can understand your audience better.

This ability to empathize will come in handy as the retail landscape continues to shift around us. Fifty percent of people agree they’re more likely to purchase from a retailer that reaches out to them at the right time when they have a need for a product or service.

If you can see how people are spending — and where they’re holding back — you can better plan your strategies around their behaviors.

This is a necessity at a time when loyalty is taking a backseat to changing lifestyles. If you give people a compelling reason to stay top of mind in the right moment, you can turn industry change into real competitive advantage.

If you want to know more about how consumers are buying differently this year — and how to make your marketing stand out to the right people — we’ve got you covered.

First, to see how you can help buyers navigate challenges like price increases and tighter budgets, read “Marketing Advice for Inflationary Times.”

Alternatively, to dig deeper into an audience segment poised to spend this year, read “3 Ways to Connect With Millennial Parents in 2022.”

As the Future of Retail Shifts, Shoppers Have High Expectations

In our recent report — 2022 Retail TrendWatch — we uncovered insight from 1,840 consumers and 268 home retailer professionals. Consumers provided their thoughts on spending priorities and buying outlook for 2022, while retailers shared their two cents on the biggest marketing and operational challenges.

People prioritize a good value when making purchases, but they also want retailers with strong values. They’re focused on DIY, but also open to splurges. They’re looking for products online and in-store, and for print and digital deals.

Such a dichotomy — what are you to make of it?

You can read the full report for yourself, but here’s a sneak peek at what we learned:

Expectation #1: Do it yourself + treat yourself

Key Stat: 26% of people are doing more home repair, maintenance or improvement projects themselves versus hiring contractors or service providers.

Key Takeaway: Position yourself as a trusted advice-giver and people will look to you when they want to do it themselves. If they change their mind, and decide they want to pay a professional, you’ll already be top of mind when it comes to their vision, trust and relatability.

Expectation #2: Value + values

Key Stat: 55% of people are willing to try a new retailer or provider when purchasing a product or service for their home.

Key Takeaway: People want to make their money stretch further. Inflation, rising prices and supply chain delays influence buying decisions. Your brand can compel people to try new products or switch retailers altogether.

Expectation #3: Relevance + immediacy

Key Stat: 50% of people are more likely to purchase from a retailer that reaches out at the right time when there is a need for a product or service.

Key Takeaway: It’s important not to take loyalty for granted. Give people a clear, compelling reason to keep coming back. Ensure you stay top of mind and inbox across the buying journey — online and offline.

Expectation #4: Mobile + mailbox

Key Stat: When it comes to coupons, discounts or deals, 28% of people are influenced by print and 24% say direct mail is their preferred delivery method for deals.

Key Takeaway: While it may be a surprise that paper is a strong contender to digital deals, retailers should note it ultimately depends on lifestyles and preferences. The best approach is to use both digital and traditional marketing, from mobile to mailbox.

We’ve shared with you the trends and a takeaway for each — download the full report for more perspective, stats, action items and recommendations.

Woman at home looking at restaurant direct mail ad

How Restaurants Can Use Direct Mail to Boost Visits

Restaurants continue to reel from supply chain issues, talent shortages and rising operating costs. In response, many have raised menu prices to help short-term sales, but those increased prices have negatively impacted consumer demand, as restaurant traffic continues to struggle.

Consumers, now facing a financial crunch unseen in decades, are changing their purchasing behaviors — they are eating out less, ordering fewer items or cooking at home more often (despite increased grocery prices as well).

However, people are willing to spend if the right deal comes along. An irresistible incentive could strongly influence them to make a spur-of-the-moment decision to dine out, pick up takeout or order food for delivery.

From a marketing perspective, many times, there is an initial reaction to cut advertising to help save money. But, instead of cutting back on advertising, restaurant marketers should be seizing this opportunity to stay top of mind and drive response with guests.

The effectiveness of direct mail

When it comes to the right media tactics, digital marketing should be part of your strategy, and so should direct mail. Here’s why:

Direct mail is targeted and engaging

Direct mail has proven to be an effective media tactic for brand awareness and customer acquisition by offering direct incentives to consumers’ mailboxes. Some marketers may have misgivings about direct mail because of some common misconceptions. Perhaps they see it as old-school and appealing only to older consumers.

On the contrary, modern direct mail uses the latest technologies to localize targeting and tailor messaging, much like digital marketing does. And younger consumers like millennials do engage with direct mail. Vericast’s March 2022 Awareness-to-Action Study found that 72% of millennials regularly read or look at ads they receive in the mail.

Direct mail influences purchasing decisions

Restaurant brands should include direct mail ads in their multichannel media mix because consumers still rely on print when making buying decisions. Consider these studies:

53% of consumers say direct mail influences them to visit a restaurant or order delivery/carryout (Vericast Awareness-to-Action Study, March 2022)
40% of consumers feel more positively toward a brand or store offering coupons or discounts (Vericast Deals & Coupons Report)
39% are more likely to make a repeat purchase if offered a deal (Vericast Deals & Coupon Report)
Average response rates for quick service restaurant direct mail ads are around 8%–12% (Vericast Campaign Analytics Data)
31% of consumers are more excited to receive their mail each day and 34% spend more time reading direct mail

Direct mail complements digital marketing

Traditional marketing, which includes direct mail, complements digital marketing in the buyer’s journey. There may be a disparity in performance, but it should not be an either-or choice. Each channel has strengths and weaknesses, so they work best when they work together.

74% of millennials and 72% of Gen Z will take to the internet for some form of online activity, such as viewing a menu, downloading an app or placing an order after seeing a print ad from a restaurant (Vericast Awareness-to-Action Study, September 2021)
46% of consumers who read a direct mail ad are encouraged to go online for more information
A USPS study showed a 40% conversion rate when direct mail and digital marketing are combined

The proof is in the results

The Vericast Restaurant Data & Analytics Group conducted multiple campaign analyses throughout the pandemic to understand the effectiveness of direct mail. The Save Direct Mail package delivered a value message with incentives such as coupons and promos. The participating brands were able to customize their offers and deliver ads at a neighborhood level. We used foot traffic analyses — mobile location tracking of exposed print consumers to QSR store visits — in a test versus control environment to measure impact.

The study shows significant ROI during difficult economic times for restaurants that leverage the shared mail package to promote their business. Participating restaurant clients saw a 36% lift in total visits for the test locations compared to control sites. Sixty-three percent of visits were from new and lapsed guests (those who have not visited in the past 60 days).

Based on the results, we projected an average campaign ROI of $5.62. This is significant as it is hard to ignore the powerful impact incentives have on traffic and profitable sales during these tough financial times.

Direct mail as part of an omnichannel strategy

As digital platforms such as Connected TV and social media continue to grow in popularity and consumption, marketers have naturally shifted focus — and advertising dollars — to those channels. But we simply cannot ignore the effectiveness of traditional media in the process. Direct mail continues to be a foundation of the media influence landscape and an effective complement to digital ad strategies.

Data-driven direct mail is the next-generation evolution of this century-old marketing tool. Our Save Direct Mail package uses predictive intelligence to discover and reach consumers and their neighborhoods with the powerful intelligence of our Consumer Graph™. You get access to over 112 million households across the entire country, allowing you to reach your target market at scale.

Download our Restaurant Report to learn more about how your restaurant can use deals and direct mail to drive more visits to your stores and increase your sales.

Matt Lukosavich has nearly two decades of experience helping to connect brands with consumers. In his current role as restaurant strategy director, Matt is responsible for developing data-driven, client-focused, multi-channel solutions with strategic go-to-market media planning for the restaurant industry vertical. Today, he supports the consumer marketing and planning needs for Vericast accounts totaling more than $200 million.

Woman and child sitting together with TV remote in hand

Connected TV Enables Effective Audience-First Advertising

With the rise in streaming content consumption, Connected TV (CTV) should be considered as a component of marketers’ advertising strategies. One of its advantages is allowing for targeting beyond the content-first approach of linear TV to reflect what will resonate most with your target audience.

Check out this video for an overview of what’s possible when including CTV as an additional tactic within your omnichannel campaigns.

Get more information about how CTV can help you provide more relevant ad experiences for consumers by visiting https://valassis.com/marketing-solutions/online-advertising/connected-tv/.