Direct Marketing News and Information

JOINT STATEMENT FROM THE DIRECT MARKETING ASSOCIATION (DMA) AND THE AMERICAN CATALOG MAILERS ASSOCIATION (ACMA)

2010-03-11T13:39:47-07:00

Boston, MA, March 11, 2010 — The Direct Marketing Association (DMA) and the American Catalog Mailers Association (ACMA) have come to an understanding of their common goals in protecting the catalog segment from legislative and regulatory threats. We pledge to work together on postal issues at the US Postal Service, Postal Regulatory Commission, and Congress, and in fighting Do-Not-Mail proposals at the state and local level.

Going forward, both groups will continue to represent our respective members’ best interests, which may differ at times. ACMA will continue its aggressive work in postal and other catalog-specific matters. DMA will continue its work on postal issues, as well as the many other issues that affect catalogs and the broader direct marketing community, including tax, privacy, and offers.

There is an enormous amount of work to do. It requires significantly increased participation from every company with an economic stake in cataloging. Both ACMA and DMA are under-resourced from the catalog community. Our ability to operate successfully requires the financial resources, executive time, and broad-based membership of catalog mailers and their suppliers.

ACMA and DMA would like to call on all companies that mail catalogs to join both organizations if you are not a member already; and to become active participants. We need a broad-based and unified effort to continue the endeavors both organizations have shaped. ACMA and DMA are excited about developing a productive and cooperative relationship and look forward to making a difference for catalogers on a long list of public policy issues.

About the American Catalog Mailers Association
ACMA is a Washington-based not-for-profit organization specifically created to advocate for the unique collective interests of catalog mailers in regulatory, public and administrative matters where the shared impact transcends individual company interests. ACMA participates in rulemaking and other proceedings of significance where a single collective voice increases influence and effectiveness. Membership is open to any party with significant interests in the catalog industry. More information can be found at www.catalogmailers.org.

About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents companies from dozens of vertical industries in the US and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit organizations.
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Direct Marketing and Mail Order Business Association

Compendium Survey Finds 80% of Business Blog Traffic Comes from First-Time Visitors

2010-03-11T07:59:50-07:00

For Effective Social Media and Blogging, Marketers Need to Develop Content for First-Timers

INDIANAPOLIS--Compendium, an enterprise platform for social media and search, announced today the results of its Corporate Blogging and Social Media Trends Survey. For the survey Compendium gathered data from 266 companies about blogging traffic, visitor trends, and Twitter usage. The results counter the commonly held belief that business blogs have a core group of loyal readers. The Corporate Blogging and Social Media Trends Survey found that almost two-thirds of respondents reported more than 80 percent of all blog traffic was first time visitors.

“As more traffic is being driven to corporate blogs through organic searches and more first-time visitors are landing on blogs, companies need to develop blog and social media content that is appropriate for this audience in order to be effective,” said Chris Baggott, CEO and co-founder of Compendium. “A keyword-optimized blogging and social media content strategy geared towards first-time visitors is a valuable tool for marketers to increase conversions.”

Business Blog Traffic = First-Time Visitors and Search Engine Referrals

Of the B-to-B companies surveyed, 64 percent said between 61 and 100 percent of visitors were first-timers. First time visitors come from two major sources, referring sites and search engines. For companies selling to consumers, first-time blog traffic and traffic through search engines made up an even higher percentage of blog traffic, with almost three-quarters of the respondents reporting that 81-100 percent of blog traffic came from first time visitors and more than half indicating that 41 percent or more of traffic came through searches.

Twitter: Not Universal Yet; More Popular with B-to-B Companies

In addition to examining business blog trends, the survey also researched respondents’ use of Twitter. Overall, less than half (approximately 43 percent) of the companies surveyed had established a Twitter account. Twitter usage was highest among B-to-B companies with 87 percent maintaining an account.

Compendium Social Search Advisory Board

To explore the topic of blogging and social media for the enterprise through tools such as The Corporate Blogging and Social Media Trends survey, Compendium has created an Advisory Board of both social media and blogging experts. The members include Debbie Weil, Corporate Social Media Strategist and author of The Corporate Blogging Book (2010 Updated Edition); Chris Baggott, search-driven blogging expert and CEO of Compendium Blogware; Jay Baer, author of the Convince & Convert blog and Jason Falls, social media guru and author of the Social Media Explorer blog.

For more information, please visit www.compendium.com

About Compendium

Compendium is an online platform for enterprise social media and search. It provides businesses and organizations an easy way to create, manage and publish ongoing blog and social media content that appears and ranks highly in online searches. Co-founded by Chris Baggott, whose blog was voted “Best Online Marketing Blog” by MarketingSherpa readers and “Best of the Web” by Forbes, and Ali Sales, Compendium’s mission is to help organizations improve search results and drive sales opportunities through blogging and social media. Compendium was founded in 2007, and is based in Indianapolis. For more information on Compendium, visit www.compendium.com
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Improve your search engine rankings with an NMOA marketing program.

How to Be Successful With Intelligent Mail Full Service

2010-03-10T09:53:17-07:00

Tips From a U.S. Postal Service Expert

WASHINGTON — With more than 7 billion pieces of mail processed and $2 billion in revenue generated for the U.S. Postal Service, the Intelligent Mail Full Service program has been a success story for business mailers, too, says Thomas Day, senior vice president, Intelligent Mail and Address Quality.

According to Day, “Early adopters of Intelligent Mail Full Service have one thing in common: They worked closely with all stakeholders in their mail supply chains and developed Full Service project plans.”

To date, there are 300 business mailers participating in Intelligent Mail Full Service. According to Day, one reason is because Intelligent Mail Full Service provides mailers with “start-the-clock” information, electronic data that lets mailers know when their mailings enter the Postal Service network. Free address correction service (ACS) information is another reason.

“The publishing industry is a big fan of free ACS,” says Pritha Mehra, vice president, Business Mail Entry and Payment Technologies. “Many of them are on target to save millions of dollars a year. Considering the savings from free ACS as well as the postage discount for participating in Full Service, the return on investment can be very high.”

For mailers who are still thinking about signing on to the program, Mehra has these tips:

Talk to colleagues who generate the mail in your organization to determine the return on investment of Full Service price discounts and free ACS.
Work closely with your mail service providers, including equipment manufacturers and software vendors, to determine their capabilities, such as the ability to print the Intelligent Mail barcode.
Make sure your mailing software is capable of submitting postage statements and other supporting documentation electronically through the PostalOne! system. (Mailers are encouraged to use one of three electronic options: Postal Wizard, Mail.dat or Mail.XML.)
When developing solutions with your mail supply chain, determine how barcodes will be created. Will you use your own Mailer ID or that of the mail owner? How will you ensure uniqueness of the barcodes? (A unique barcode on each mail container, for example, enables it to be scanned for “start-the-clock” when it’s inducted into the Postal Service network. Also, a unique barcode on each piece of mail enables tracking of that piece.)

For more information about Intelligent Mail Full Service, visit ribbs.usps.gov.

A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars. With 36,000 retail locations and the most frequently visited website in the federal government, the Postal Service relies on the sale of postage, products and services to pay for operating expenses. Named the Most Trusted Government Agency five consecutive years and the third Most Trusted Business in the nation by the Ponemon Institute, the Postal Service has annual revenue of more than $68 billion and delivers nearly half the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 28th in the 2009 Fortune 500.
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Magazine for Creating Successful Direct Mail

Marketers’ Digital Spending to Overtake Print for First Time Ever, According to Outsell, Inc.

2010-03-10T09:47:39-07:00

Outsell Forecasts Advertising/Marketing Spending to Grow, But Only 1.2 Percent

BURLINGAME, Calif. and LONDON--For the first time, spending on digital/online advertising and marketing will overtake print in 2010, according to new projections from Outsell, Inc. In an industry crossover event, companies will spend $119.6 billion on online and digital strategies, from search engine keywords to webinars, while committing $111.5 billion to print methods such as newspaper and magazine ads. Overall, U.S. spending on advertising and marketing will increase in 2010, but by just 1.2 percent to $368 billion.

Outsell’s “Marketing and Ad Spending Study 2010: Total US and B2B Advertising,” forecasts spending, share, and growth for five media types—online, events, print, TV/radio, and PR/other—and methods used within each, from social networking to mobile/wireless marketing.

“Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding. As they emerge from the recession, they need more accountability, and they’re spreading their spending over a widening set of options,” said Chuck Richard, Vice President and Lead Analyst, Outsell.

Among findings:

    * Print magazine advertising will be up 1.9 percent to $9.4 billion despite the popularity of online channels.
    * Methods generating the highest B2B ROI are topped by advertisers’ own websites, followed by conferences, exhibitions and trade shows; direct mail; search engine keywords; and e-marketing/e-newsletters.
    * B2B advertisers see cross-media marketing as most effective; 78% combine three or more major marketing methods.
    * 51 percent of B2B marketers rate Facebook as extremely or somewhat effective, followed by LinkedIn (45 percent), Twitter (35 percent) and MySpace (25 percent).

Outsell surveyed more than 1,000 US advertisers in December 2009.

For the report, with publisher recommendations: http://www.outsellinc.com/store/products/912?refid=pr912.

ABOUT OUTSELL, INC.:

Outsell is the only research and advisory firm focused on advancing the publishing and information industries. Our international team provides independent, fact-based analysis and actionable advice about competitors, markets, operational benchmarks, and best practices, so our clients thrive and grow in today's fast-changing digital and global environment. Outsell tracks and analyzes over 7,000 information industry companies, as well as the needs, habits, and spending patterns of advertisers, enterprise information buyers, and end users. Outsell’s headquarters are in Burlingame, CA, with offices in London and in Cambridge, MA. See www.outsellinc.com.
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How to create successful small business advertising.

Summer Mail Sale Returns Customer Loyalty to Be Rewarded Again in 2010

2010-03-08T15:57:28-07:00

WASHINGTON — The U.S. Postal Service did something for the first time last year, and it was so successful, they’re planning to do it again: launch a summer sale.

The 2010 Summer Sale is scheduled to run July 1 through Sept. 30 and will provide a 30 percent rebate to eligible mailers on Standard Mail letters and flats volume above a predetermined threshold. The threshold will be five percent over each participating mailer’s volume for the same period in 2009. Invitations to participate in the sale will be sent to customers in early March.

“The 2010 Summer Sale is our way of rewarding our most loyal customers and demonstrates that we value their business,” said Robert F. Bernstock, president, Mailing and Shipping Services. “We expect the 2010 Summer Sale to provide as much excitement about direct mail as the sale did last year and to generate between 300 million and 1 billion new mailpieces.”

Nearly half the 960 customers enrolled in the 2009 Summer Sale increased their mailing volumes. This resulted in approximately 1 billion incremental pieces during the sale period, producing a net revenue contribution of $24 million.

“Direct mail works, and our customers know that,” said Bernstock. “That’s why we will continue to invest in programs that promote the health of our customers’ businesses as well as our own. We very much appreciate our customers’ business, and we will compete aggressively for their advertising and promotion dollars in this highly competitive marketplace.”

To be eligible to participate in the 2010 Summer Sale, a company must have mailed 350,000 or more Standard Mail letters and flats between July 1 and Sept. 30, 2009. Approximately 3,525 customers are expected to be eligible to participate in the sale, representing 67 percent of the Postal Service’s Standard Mail volume.

The 2010 Summer Sale is a component of a broader pricing strategy that creates incentives to grow and retain volume. It was one of many solutions discussed this week at a Washington, D.C.-stakeholder event in which Postmaster General and CEO John E. Potter addressed hundreds of customers, business partners, employees and the media during a presentation: Envisioning America’s Future Postal Service. At the event, Potter outlined an aggressive plan of cost cutting, increased productivity, and an array of legislative and regulatory changes necessary to maintain a viable Postal Service.

The 2010 Standard Mail Summer Sale is subject to approval by the Postal Regulatory Commission.

About:
A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars. With 36,000 retail locations and the most frequently visited website in the federal government, the Postal Service relies on the sale of postage, products and services to pay for operating expenses. Named the Most Trusted Government Agency five consecutive years and the third Most Trusted Business in the nation by the Ponemon Institute, the Postal Service has annual revenue of more than $68 billion and delivers nearly half the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 28th in the 2009 Fortune 500.
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Who's Charging what for direct mail marketing services.

Delivering Trust, Delivering Justice -- USPS and U.S. Postal Inspection Service To Mark National Consumer Protection Week March 7-13

2010-03-08T14:38:14-07:00

WASHINGTON — Today, the U.S. Postal Service and the U.S. Postal Inspection Service join with federal, state and local government agencies and consumer protection organizations to announce the 12th annual National Consumer Protection Week (NCPW), March 7-13. This coordinated consumer education campaign highlights the importance of protecting privacy and steering clear of fraud and scams.

This year’s theme – Dollars & Sense: Rated “A” for All Ages – encourages individuals to exercise good consumer sense at every stage of life – from grade school to retirement.

“It’s never too early or too late to become a more informed consumer,” said Delores J. Killette, U.S. Postal Service vice president and Consumer Advocate. “This year, NCPW’s goal is to educate consumers of all ages on how they can prevent becoming a victim of fraud and scams.”

In recognition of NCPW 2010, the Postal Service and Postal Inspection Service are calling attention to free resources to help people protect their privacy and avoid identity theft and other fraud schemes. Consumers can visit www.deliveringtrust.com for free fraud education and prevention videos about identity theft, work-at-home scams, internet fraud, foreign lotteries, investment scams and more. Viewers can follow the Chief Postal Inspector and Postal Service Consumer Advocate as they walk through the top ten scams to watch for. The website also offers tips on recognizing scams and instructions on reporting scammers to the appropriate authorities.

In addition, the Postal Inspection Service offers the following tips for consumers to avoid becoming a victim of fraud:
°    Know the warning signs: If it sounds too good to be true, it probably is. Watch out for offers that apply pressure to act “right away,” guarantee success, promise unusually high returns, require an upfront investment, don’t have the look of a real business or just don’t feel right.
°    Know the facts: Banks will never e-mail or call for account numbers. There are no legitimate jobs that involve re-shipping items or financial instruments from home. Foreign lotteries are illegal in the U.S. If in doubt, check the company out with the Better Business Bureau.
°    Play it safe: Never click on a link inside an e-mail to visit a web site; instead, type the address in a web browser. Retain receipts, statements and packing slips, and review them for accuracy. Place outgoing mail in the secure blue collection boxes, or deposit it in collection slots on the inside of a local Post Office. Shred confidential documents instead of simply discarding them in the trash.
°    Get involved: Point out “too good to be true” offers to kids and teach them to be skeptical. Take an active interest in the financial activities of aging parents, especially if they’re facing an illness that could make them more vulnerable. Share information about scams with friends and family.

“We’re out to stop fraud – and you can help,” said William R. Gilligan, Jr., Chief Postal Inspector. “Many fraudulent offers can be identified and prevented before they cause any damage. Together we can help protect our families and ourselves from these crimes.”

This week across the country, participating Post Offices will host NCPW events to raise awareness of the most common fraudulent activities and what consumers can do to protect themselves. By shining a spotlight on issues and ideas that help individuals become better consumers of products, materials and services, the Postal Service and Postal Inspection Service hope to improve their knowledge of how to combat fraud.

Other national organizers of this year’s NCPW include AARP, the Comptroller of the Currency, the Consumer Federation of America, the Council of Better Business Bureaus, the Federal Citizen’s Information Center, the Federal Communications Commission, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Federal Trade Commission, the National Association of Attorneys General, the National Association of Consumer Agency Administrators, the National Consumers League and the Department of the Treasury.

For more information about NCPW, visit www.consumer.gov/ncpw.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

About:
A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars. With 36,000 retail locations and the most frequently visited website in the federal government, the Postal Service relies on the sale of postage, products and services to pay for operating expenses. Named the Most Trusted Government Agency five consecutive years and the third Most Trusted Business in the nation by the Ponemon Institute, the Postal Service has annual revenue of more than $68 billion and delivers nearly half the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 28th in the 2009 Fortune 500.

The U.S. Postal Inspection Service is the federal law enforcement, security and crime prevention arm of the United States Postal Service that protects the U.S. Postal Service, secures the nation’s mail system and ensures public trust in the mail. To learn more, visit http://postalinspectors.uspis.gov.
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Direct Mail Marketing and Mail Order Bookstore

American Catalog Mailers Association’s National Catalog Forum

2010-03-06T09:40:00-07:00

With the Annual Conference for Catalog and Multichannel Merchants (ACCM) being repositioned this year as a retail event (now called the Retail Marketing Conference), one of the only events now exclusively focused on the needs and interests of C-level catalog executives and marketers is the American Catalog Mailers Association’s National Catalog Forum, which will take place April 13-15 in Nashville, Tenn.

ACMA’s National Catalog Forum will cut to the chase and focus on what matters most to you as a catalog/multichannel merchant. Top execs from all across the catalog industry will participate.

ACMA’s primary purpose is to lobby in Washington on behalf of catalog mailers; namely to keep postal rates in check for catalogers, and not other mailers. Our event will showcase ACMA’s cause in action by giving you the opportunity to meet key decision-makers from both the Postal Service and the Postal Regulatory Commission. They need to meet you and hear what your business is all about.

You can make a difference in your own future! Participate (not just listen) in sessions concerning the latest regulations, how to mail most efficiently, and in peer-based discussions on the current catalog issues.

So please click here to visit our website and register for the ACMA National Catalog Forum. If the link won't get you there, please paste this address in your web browser:
http://www.catalogmailers.org/clubportal/ClubStatic.cfm?clubID=2129&pubmenuoptID=22904

On our site, you’ll not only find details on how to secure a special room rate at the the Opryland Hotel in Nashville, but also we’ve listed more than a half-dozen limited-service hotels located nearby at half the cost or even less for this event. So it doesn’t need to blow your budget away.

See you in Nashville in April.

P.S. Not convinced yet? Read what a few attendees had to say about the 2009 Forum…

“ACMA’s National Catalog Forum gave me access to a broad group of postal leadership and regulators, which provided a wonderfully clear understanding of the decision making process at the USPS and what is truly necessary to improve the situation for catalog mailers and the postal industry.”

--Martin McClanan, President, Norm Thompson & Sahalie

“There is nothing quite as valuable as direct access to decision makers who create policy that impacts your business. The ACMA Forum provided senior catalog executives with unprecedented access to the most senior policy makers at both the USPS and Postal Regulatory Commission. It is a ‘must attend’ event for senior catalog executives.”

--Allen Abbott, Executive Vice President & COO, Paul Fredrick MenStyle

“The 2009 ACMA Forum was a real eye opener. To see the respect, attention and relationship that this relatively new group has with the USPS was truly impressive. Among the many great takeaways from last year’s Forum was how diverse the catalog group represented by ACMA is and yet how cohesive the group has been able to remain. By being the voice of catalogers only, the diverse spectrum of B2C, B2B, large and small, are all able to be heard and collectively benefit from ACMA’s efforts.”

--Neil Sexton, President & COO, Northern Safety

“For the first time ever, I got to sit down face to face with senior postal officials who drive USPS catalog policies and pricing, explain our challenges to them, and felt they really listened and were receptive to our ideas. I have never experienced this level of access and responsiveness from the USPS before.”

--Jim Feinson, CEO, Gardener’s Supply Co.

“Last year’s ACMA National Catalog Forum provided an opportunity for catalogers and their suppliers to meet under a single tent of unity in search of win-win solutions with the USPS. It supplied a sense that the USPS was demonstrating its commitment by seriously seeking our input to help craft incentives that would support one of their largest customer groups.”

--Ralph Drybrough, President & CEO, MeritDirect

About the American Catalog Mailers Association:
ACMA is a Washington-based not-for-profit organization specifically created to advocate for the unique collective interests of catalog mailers in regulatory, public and administrative matters where the shared impact transcends individual company interests. ACMA participates in rulemaking and other proceedings of significance where a single collective voice increases influence and effectiveness. Membership is open to any party with significant interests in the catalog industry. More information can be found at www.catalogmailers.org.

Contacts:
Paul Miller, vice president & deputy director, 914-669-8391, pmiller@catalogmailers.org
Hamilton Davison, president & executive director, 800-509-9514, hdavison@catalogmailers.org
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Important Reference for Catalog Marketing
The Catalog Strategist's Toolkit

New Survey Finds American Advertisers Acknowledge Hispanics' Impact on U.S. Culture but Half Don't Market to Nation's Largest Minority

2010-03-04T15:45:13-07:00

A Golden Opportunity for Companies to Engage Latinos as a Driver of Business

LOS ANGELES--The 2010 U.S. Census is expected to find that Hispanics number more than 50 million in this country, and they command $1 trillion in buying power. Yet 50% of U.S. advertisers, who acknowledge the cultural impact of Latinos, do not include Hispanics in their marketing efforts. The field is wide open for companies that recognize the incredible power of Hispanics as a driver of their businesses.

That’s the key finding of a new Hispanic marketing trends survey commissioned by Los Angeles-based Hispanic advertising agency Orcí sent to 9,300 senior marketers at Fortune 1000 companies. The survey, conducted via email in February of 2010, was designed to offer a broad and deep look at advertisers’ strategy, spending plans and viewpoints of the U.S. Hispanic market. Respondents included senior marketing and advertising executives of B2B, consumer, small, medium and large Fortune 1000 businesses across the country.

Latinos comprise more than 15% of the U.S. population, and are predicted to rise to 50 million in the 2010 Census, an increase of 42% since the last Census in 2000. In the 2000 report, the Hispanic growth rate of 24.3% was more than three times the growth rate of the total U.S. population (6.1%).

Yet the Orcí research showed that 51% of respondents do no marketing to Latino consumers. And, 82% have no plans to begin or increase existing efforts aimed at American Hispanics in the next 12 months. This despite the fact that the great majority of respondents—more than 8 out of 10—agreed that Latinos will impact U.S. companies’ product and service offerings in the next five years, particularly in food tastes, fashion and technology.

“I am not surprised by the findings,” said Hector Orcí, co-founder and chairman of the agency, which handles such accounts as American Honda Motor Company and Jack in the Box. “For the last 30 years a minority of companies that have been smart enough to take advantage of engaging Hispanic consumers have seen their efforts make a difference to their bottomline. Now more than ever, businesses need to think about how to tap into the opportunity the Hispanic market presents.”

The survey also found that 78% of respondents do not use social media to engage Latinos despite the fact that Hispanics are the heaviest users of wireless access through mobile phones and laptops than any other ethnic group. In addition, close to 80% of Latinos engage in some kind of online socializing.

The survey found that among those companies who do use social media to market to Hispanics, Facebook was the site of choice with Twitter a close second.

“Hispanics are tech savvy, young trend setters with incredible spending power,” Orcí said. “Companies that recognize the potential of the market by effectively engaging them will see a return on their investment.”

Other key results of the survey include:

    * 89% believe Latinos will somewhat or significantly impact American taste in foods in the next five years
    * 87% believe Latinos will impact fashion and beauty
    * 82% expect Hispanics to impact entertainment
    * 78% believe Hispanics will impact technology/communications

To receive a copy of the full survey results, please visit www.orci.com.

About Orcí

Headquartered in Los Angeles, Orcí, a 100% independent, minority- and woman-owned advertising agency, continues its legacy of delivering results which exceed client expectations. We have introduced more than 20 of America’s best-loved brands to the Hispanic market. In addition, we understand the intricacies of working with government agencies and bring the brightest thinking and heart-felt passion to non-profit clients. The world has changed since our founding in 1986. What hasn’t changed is ORCI’s ability to help our clients win the hearts and minds of Latino consumers.
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Hispanic Direct Marketing: Techniques & Best Practices

Postal Service Outlines 10-Year Plan to Address Declining Revenue, Volume Seeks Flexibility on Operations, Delivery; Possible 2011 Price Increase

2010-03-02T14:25:49-07:00

WASHINGTON –Facing unprecedented volume declines and a projected, cumulative $238 billion shortfall during the next decade, Postmaster General John E. Potter today outlined an aggressive plan of cost cutting, increased productivity, and an array of legislative and regulatory changes necessary to maintain a viable United States Postal Service.

“The crisis we’re facing gives us an historic opportunity to make changes that will lay the foundation for a leaner, more market responsive Postal Service that can thrive far into the future,” Potter said, stressing that there is no one single answer or quick fix to the crisis.

The Postal Service examined revenue, volume and consumer trends; analyzed revenue and product opportunities employed by foreign posts; and examined more than 50 possible actions to realistically address volume declines that will not return, increasing health care and delivery costs, and dramatic changes to consumer behavior.

“The future depends on a suite of solutions that takes a balanced and reasonable approach, one that cuts across every aspect of our industry but one that, in the end, does the greatest possible good for our stakeholders and the American public,” Potter said.

Mail volume is projected to fall from 177 billion in 2009 to 150 billion in 2020. That represents a 37 percent decline in First-Class Mail alone. Revenue contributed by First-Class Mail will plummet from 51 percent today to about 35 percent in 2020.

“Ensuring a Viable Postal Service for America,” the Postal Service business plan, addresses these challenges, and describes a flexible, agile Postal Service that can adapt to America’s changing mailing habits and preferences.

If the Postal Service takes no action, it will face a cumulative shortfall of $238 billion by 2020. But Potter outlined a number of actions that could amount to as much as $123 billion in savings during that same time period. These actions build on the Postal Service’s record of saving more than $1 billion every year since 2001 and include continuing to aggressively control costs and eliminating hundreds of millions of work hours.

Despite these efforts, an estimated $115 billion shortfall will remain. The business plan identifies actions to close that gap:

Restructure retiree health benefits payments to be consistent with what is used by the rest of the federal government and the majority of the private sector and address overpayments to the Postal Service Civil Service Retirement System pension fund.

Adjust delivery days to better reflect current mail volumes and customer habits.

Continue to modernize customer access by providing services at locations that are more convenient to customers, such as grocery stores, pharmacies, retail centers, and office supply stores. Increase and enhance customer access through partnerships, self-service kiosks and a world-class Website.

Establish a more flexible workforce that is better positioned to respond to changing demand patterns, as more than 300,000 employees become eligible to retire in the coming decade.

Ensure that prices of Market Dominant mailing products are based on demand for each individual product and its costs, rather than capping prices for every class at the rate of inflation.

A modest exigent price increase will be proposed, effective in 2011.

Permit the Postal Service to evaluate and introduce more new products consistent with its mission, allowing it tobetter respond to changing customer needs and compete more effectively in the marketplace.

“Lifestyles and ways of doing business have changed dramatically in the last 40 years, but some of the laws that govern the Postal Service have not. These laws need to be modernized to reflect today’s economic and business challenges and the dramatic impact the Internet has had on American life,” Potter said.

The business plan is a path to the future, the Postmaster General said, a future where the Postal Service remains a vital driver of the American economy, an integral part of every American community and continues to deliver the greatest value of any comparable post in the world.

“If given the flexibility to respond to an evolving marketplace, the Postal service will continue to be an integral part of the fabric of American life,” Potter said.# # #

For more information, fact sheets, soundbites and graphics, please visit www.usps.com/strategicplanning/futurepostalservice.

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Please Note: For broadcast quality video and audio, photo stills and other media resources, visit the USPS Newsroom at www.usps.com/news.

ACMA Group Marches on Washington

2010-03-02T09:33:03-07:00

On Feb. 16-17, nine American Catalog Mailers Association members were accompanied by ACMA president & executive director Hamilton Davison and me for several key meetings with top USPS management in Virginia andWashington, DC.. A few of us also stayed on for the Mailers Technical Advisory Committee (MTAC) meetings held on Feb. 17-18.

ACMA members: You can access complete details of each facet of this trip on the Member Side of the ACMA website at www.CatalogMailers.org. Below are highlights:

To learn and explore how flats mail is processed, as well as offer up our ideas for how we might do things differently with their potential cost savings, on Feb 16, we first met with Rosa Fulton, executive director, FSS, for the USPS. She and several other colleagues then led us on an extensive tour of two mail processing plants: the Sterling L&DC and the Dulles P&DC, both located in suburban Virginia.On Feb. 17, we met with Fulton, Deputy Postmaster General Pat Donahoe, Krista Fazzano, the USPS’s manager of operational requirements, and other USPS managers for a two-hour brainstorming meeting at USPS headquarters in Washington.Later that day on into Feb. 18, we took part in the MTAC meetings.

In addition to Hamilton and me, attendees included Michael Bloom of Now You Know Media; Beth Diekman of Oriental Trading Co.; Nancy Cushman of Crate & Barrel; Jonathan Fleischman of Potpourri Group; Ryan Hennig of Miles Kimball; Ryan Jennings of Vermont Teddy Bear; Phyliss Mosca of Ulla Popken; Dana Pappas of Plow & Hearth; and Bryan Wolfe of Redcats USA.

Groundbreaking Meeting with DPMG
Although many moments stood out, the highlight of the trip was the meeting with the Deputy PMG and his colleagues. In calling the meeting to order, Donahoe said, “This is a meeting we didn’t want to miss.” That’s because to date, he and other USPS personnel haven’t been properly exposed to the inner workings of companies that do business by print catalog. What’s more, they were eager to get ideas from our group on how to process catalogs through their flats automation equipment more efficiently, exploring different cost and customer value drivers that should be considered.

Donahoe, Fulton and Fazzano are clearly eager to find more efficient ways to sort flats. Donahoe said the USPS needs to figure out how to eliminate at least half of the 10 steps to processing flats, much of which is manually accomplished. (An entire presentation on this issue will be posted on the Member Side of the ACMA site soon.) Beginning with mailpiece design and ending with final delivery, the steps Donahoe told us he'd like to find a way to eliminate are strapping and wrapping of bundles, the loading of bundles and wrapping of pallets, unloading of bundles and pallets, dumping and sorting of bundle distribution and unstrapping and unwrapping of bundles prior to sortation and sequencing. We agreed these all add cost and complexity but create no value from the cataloger perspective.

As we could see first-hand during our tour of the Sterling and Dulles plants the day before, despite the USPS’s sophisticated Flats Sequencing System (FSS) sortation equipment, there are many instances where manual sortation of some catalogs (and magazines) is required. This adds to USPS costs and slows sorting and delivery time.

“The meetings provided rare, valuable and productive time spent reviewing flats processing and talking to the decision makers within the USPS who can influence improvements,” said Phyliss Mosca, president of Ulla Popken, a cataloger of women’s apparel. “We discussed inefficiencies and identified actionable solutions for short- and long-term solutions for cost savings to both the USPS and flats mailers. I believe it was a true win-win from both sides.”

MTAC Recap

On Feb. 17, the MTAC meetings were kicked off with a presentation by USPS inspector general David Williams. His presentation was on the agency’s efforts to recapture $75 billion it has overpaid since 1972 to the Civil Service Retirement System. He noted that legislation is needed to make the necessary adjustments to pass the overpayment back to the USPS. “The fix is fairly simple,” he said. The hard part is in getting it through the political process.

Other key MTAC highlights:

Summer Sale 2010 Takes Shape: Deeming last year’s “Summer Sale” a success, USPS manager, marketing mail Tom Foti said the USPS will soon finalize a proposal to the Postal Regulatory Commission for a similar incentive to take place later this year. (ACMA published a summary of the proposed Summer Sale that also became the source for this article.) Foti later told Hamilton and me, however, that summer sales won’t necessarily continue every year thereafter. Foti said that with ongoing and extensive, eye-opening input from ACMA, the USPS is more interested in long-term solutions to draw more catalogs into the mailstream at rates catalogers and other mailers can afford. ACMA continues to work closely with USPS managers on developing a plan that grows and retains cataloger volumes.
Deflection Mailing Standards (“Droop Test”) Raise Uproar: Attendees attacked the deflection test for automated flats processing in the FSS system, presented by Becky Dobbins, USPS manager, mailing standards. As Dobbins attempted to demonstrate the test, MTAC members criticized it for being too subjective and not allowing for precertification ahead of time. She said that the standards were set to begin on June 7 and mailer members said this date was too soon considering they still don’t find the droop test scientifically acceptable.
USPS Builds Five-day Delivery Case: Despite being shot down already, the USPS continues to build its case to eliminate Saturday mail delivery. Bob Michaelson, the USPS’s manager, programs management & support, listed the services that the agency proposes shutting down on Saturdays vs. those that would still function. He assured MTAC members that the USPS could handle a two-day (Saturday-Sunday) suspension of mail processing to still get mail delivered on Mondays.
Expected Future Mail Volume Numbers Not So Bad?: USPS vice president finance & planning Steve Masse said that although mail volume was down 8.9% in the first fiscal quarter of 2010, he’s seeing signs of a recovery in government data being released on the economy that might lead one to believe that the largest volume shortfalls are behind us.

ACMA members: Again, more complete details on the MTAC meetings have been posted on the Member Side of the ACMA website.

ACMA’s National Catalog Forum Agenda Now Available
Registration for the ACMA’s National Catalog Forum, April 13-15 in Nashville remains open but space is filling fast. The meeting agenda will be packed with high level access and issues of strategic importance to your business. View it now on our website by clicking here right now. The stakes are getting higher considering all that’s going on in Washington these days affecting catalog mail. Find out what this means, what you can do to make sure the decisions go your way, and compare notes on solutions to pressing issues and needs. And the ACMA Forum is a great way to meet major USPS and PRC officials, hear what their thinking is about catalog mail and share your concerns and your "story." They need to hear from people like you!

With aggressive input from several members, ACMA has the health, well-being and future of catalog mailing concerns top of mind right now with the USPS. Our education and work is ongoing in several fundamental areas. We need as many catalog companies and their suppliers on hand as possible to help advance the cause. You do not need to be an ACMA member to participate. So now’s the time to register for the Forum.

And don’t come alone; be sure to bring one or two colleagues who care about how much their catalog postage costs and how well their books are being mailed. Click here to register online right now, or go to www.CatalogMailers.org. In addition to the host hotel, the Gaylord Opryland ($199/night), you have other lower-cost choices and we’ve listed them all on our website. Book now; the rooms are going fast.

Contacts:
Paul Miller, vice president & deputy director, 914-669-8391, pmiller@catalogmailers.org
Hamilton Davison, president & executive director, 800-509-9514, hdavison@catalogmailers.org
# # #

- Directory of Mail Order Catalogs
- Online Database of Mail Order Catalogs

Seventy-Nine Percent of Large International Companies Are Using at Least One Social Media Platform to Engage with Stakeholders, Study Finds

2010-02-24T18:27:55-07:00

NEW YORK-- More than three-quarters (79 percent) of the Fortune Global 100 companies are using at least one of the most popular social media platforms (Twitter, Facebook, YouTube and corporate blogs) to actively engage with stakeholders, according to a new study on the usage of social media published today by Burson-Marsteller, a leading global communications firm. This study is the first in Burson-Marsteller’s Evidenced-Based Communications research series, which will focus on providing data to support insights-driven communications programs.

The study found that 65 percent of the Fortune Global 100 had active accounts on Twitter, 54 percent had a Facebook fan page, 50 percent had a YouTube channel, and 33 percent had corporate blogs. Only 20 percent of the major international companies were utilizing all four platforms to engage with stakeholders. Companies based in the United States and Europe were most likely to use Twitter (U.S.: 72 percent, Europe: 71 percent) or Facebook (U.S.: 69 percent, Europe: 52 percent) than they were to have corporate blogs (U.S.: 34 percent, Europe: 25 percent), while companies from Asia-Pacific were more likely to utilize corporate blogs (50 percent) than other forms of social media (Twitter: 40 percent, Facebook: 40 percent).

“Whether it is Facebook, Twitter, YouTube or popular local online communities, people continue to become more involved in social networking and are expanding the types of activities they engage in,” said Burson-Marsteller’s Global CEO Mark Penn. “This analysis shows that they are increasingly being joined by large global companies that are also recognizing the need to participate on social networks.”

The study also found that Fortune Global 100 companies were active users of their social media accounts. The study found that within the last week (during the period of data collection) 82 percent had tweeted and 59 percent had posted content on their Facebook fan page and in the prior month, 68 percent had posted a video on YouTube and 36 percent had posted an entry on a corporate blog .

There is also evidence that stakeholders are listening and engaging. In the study corporate Twitter accounts averaged 1,489 followers, while each Facebook fan page averaged 40,884 fans.

Some companies are interactive and not solely using social media to broadcast corporate messages. Companies using Twitter were following an average of 731 people each, and 38 percent of companies were responding to people’s tweets Thirty-two percent have also “re-tweeted” or reposted user comments during the last week.

To help companies navigate the social media landscape, Burson-Marsteller has developed a tool called the “Social Media Check-up” which looks at how a company’s social media presence is impacting their overall online health and reputation. The Social Media Check-up assesses a company’s participation across the most popular social media platform and compares to the landscape within their competitive set to determine the best way for companies to engage in social media and contribute to their communities of interest.

Other key findings include:

    * On average, the Fortune Global 100 companies have 4.2 Twitter accounts, 2.1 Facebook fan pages, 1.6 YouTube channels and 4.2 corporate blogs.

    * Companies with active accounts have 27 tweets per week, 3.6 Facebook posts per week 10 new YouTube videos per month and 7 blog posts per month.

    * Corporate YouTube channels have an average of 452 subscribers each and over 38,000 views per channel.

    * To access the complete analysis of these findings click here for the PDF report.

About this Study

Data was collected between November 2009 and January 2010 among the top 100 companies of the 2009 Fortune Global 500 companies. Sample size for countries/regions: U.S. = 29 companies, Europe = 48 companies, Asia-Pacific = 20 companies, Latin America = 3 companies. Because of the low sample size for Latin America, data is only broken out for this region for overall activity rates. “Active” accounts have at least one post in the past 3 months. Outliers have been noted. Data was collected by Burson-Marsteller’s global research team.

About Burson-Marsteller

Burson-Marsteller (www.burson-marsteller.com), established in 1953, is a leading global public relations and communications firm. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, advertising and web-related services. The firm’s seamless worldwide network consists of 70 offices and 60 affiliate offices, together operating in 85 countries across six continents. Burson-Marsteller is a part of Young & Rubicam Brands, a subsidiary of WPP (NASDAQ: WPPGY), one of the world’s leading communications services networks.
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Consumer “New Frugality” May Be an Enduring Feature of Post-Recession Economy, Finds Booz & Company Survey

2010-02-24T18:22:11-07:00

Recession-Driven Behaviors – Increased Saving, Deferred Consumption and Weakened Brand Loyalty – Unlikely to Change as General Economy Improves

NEW YORK--A “new frugality,” born of The Great Recession and evidenced by two consecutive years of declining per capita consumption, is now becoming entrenched consumer behavior that is reshaping consumption patterns in ways that will persist even as the economy rebounds, according to a new survey of 2,000 U.S. consumers from Booz & Company.

This new consumer spending report, the second issued by Booz & Company since the early days of the recession in October 2008 [link], confirms a picture of pervasive retrenchment in consumer spending that spans a broad range of consumer product categories. But the survey also suggests that increased frugality may have become learned behavior, making many Americans more cautious and discerning consumers. What is more, the study suggests that these behaviors are “sticky,” and unlikely to quickly change as the economy shows signs of improvement. For example, in the next 12 months just 9% of consumers intend to spend at pre-recession levels on household products, 10% on mobile phone service, 11% on health and beauty products, and 18% on apparel, clothing, and shoes. Moreover, nearly two-thirds (64%) of consumers say they’ll shop at a different store with lower prices even if it’s less convenient for them.

“Frugal behavior is now considered trendy by many shoppers, and will continue for years to come,” said Matt Egol, a Booz & Company Partner. “In this changed environment, marketers need to develop deeper insights into shopper attitudes and behaviors in order to better align their product, pricing, and marketing communications strategies.”

Evidence of changed consumer attitudes abounds in the study. For example:

    * Approximately two-thirds of the respondents (65%) say they now consider saving to be more important than spending, and that they frequently use coupons.

    * More than half (55%) say they would rather get the best price than the best brand.

    * More than half of consumers surveyed reduced discretionary spending on a range of categories, including dining out (58%), consumer electronics (53%), apparel (53%), and media and entertainment (51%).

Further, these attitudes are translating into strong behavioral change going forward:

    * Nearly two-thirds (64%) of consumers say they’ll shop at a different store with lower prices even if it’s less convenient for them.

    * Only one-third (32%) of respondents believe that their household financial status over the next twelve months will change for the better, reinforcing focus on frugal shopping behaviors such as deferring spending, trading down to lower price points, or buying their favorite brands during promotions

Several other consumer behaviors characterize the “new frugality.” Highlights include:

Shopping itself is less impulsive and more disciplined. Recession-habituated shoppers are more inclined than ever to do research before going to the store. This was especially true, the survey revealed, in three categories: Health and Beauty (83%), Household Products (82%) and Food and Beverage (79%).

Another study conducted this past Fall by Booz & Company in collaboration with Grocery Manufacturers Association, “Shopper Marketing 3.0,” found a comparable proportion of shoppers conducting research before they shop, with a focus on finding the best prices, clipping coupons, and reading circulars for what is on sale. The “Shopper Marketing 3.0” study also found that many shoppers use price breaks to justify buying the brands they love.

The shift to private label products has accelerated and shows no signs of slowing down. In fact, Booz & Company analysis shows that private labels are likely to continue to take share from brand names. Said Egol, “Retailers are unlikely to give brands back the shelf space that private label has taken given their dependence on private label for profits. In addition, consumers are reporting generally positive experiences when trying private labels, so for some consumers they are becoming preferred brands.”

However, the move to lower price points overall, while pervasive, is not universal. Generally, shoppers are opting for lower priced brands in apparel, household products, and food. But they are less inclined to “trade down” when purchasing alcoholic beverages, tobacco, and health and beauty products.

Not surprisingly, big ticket items will continue to see the biggest household spending cuts: In the past year consumers continued to defer expenditures for items like consumer electronics (only 22% made purchases) or home improvements (23% made purchases). These behaviors will continue in 2010; only 13% and 17% respectively said they would revert to pre-recession buying habits in these categories.

Implications for Marketers

The Booz & Company survey sheds light on the challenges faced by consumer marketers and retailers emerging from the recession. Specifically, faced with the same basic economic trends, consumers are behaving differently with respect to their attitudes toward value and loyalty. Booz & Company identified six distinct, new consumer segments that can help interpret how customers shop in terms of brand loyalty, retail format loyalty, and online behaviors. These segments range from “Shopper 2.0” – young consumers who tend to buy online, regardless of product category, who are price sensitive with few brand or store format loyalties – to “Loyalists,” largely male, who are loyal to both brands and the stores where they shop, but are also avid users of the Internet for research and buying.

“This more cautious consumer approach to spending began even before the recession came into full swing but has since picked up speed,” said Booz & Company Partner Andrew Clyde. “As manufacturers lured consumers with new promotions, consumers traded down and liked the experience. As the economy recovers, marketers need to better target their strategies to preserve the value of existing brands, and avoid destroying value through too blunt a competitive response across segments.”

For retailers and consumer products manufacturers, Booz & Company identifies specific areas to spur growth and profitability coming out of the downturn:

    * Building marketing strategies and tactics that address where and why consumers shop – rather than relying too heavily on demographics-based approached used for advertising buying.

    * Determining differences in consumer behavior across product categories, offline vs. online shopping occasions, and specific retailers/etailers.

    * Differentiating marketing messages and promotional offers to more price conscious consumers vs. those who place greater value on brand or convenience.

    * Engaging shoppers along the full path to purchase, rather than treating online and in-store interactions as silos.

Methodology

The survey polled 2,000 U.S. consumers, with a sample that is representative across demographics, geographies, product categories, and retail formats. The polling was conducted online during October, 2009. The results of this sample were integrated with Booz & Company’s perspectives on key trends currently shaping consumer behaviors based on recent client experiences across the marketing and media ecosystem and across a broad set of consumer spending categories.

The full report, “New Marketing Imperatives,” is available for download on www.booz.com.

About Booz & Company

Booz & Company is a leading global management consulting firm, helping the world’s top businesses, governments, and organizations.

Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914.

Today, with more than 3,300 people in 60 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage.

For our management magazine strategy+business, visit www.strategy-business.com.

Visit www.booz.com to learn more about Booz & Company.
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Mercury Media Releases “The Power of Television”

2010-02-24T18:15:56-07:00

New TV Perspectives Series Explores Video Delivery Ecosystem

MARLBORO, Mass.-- Mercury Media, the largest privately-owned, full service direct response media agency in the country, today released the first installment of TV Perspectives, a series of white papers authored by Michael Goodman, Senior Director, Research and Analytics for Mercury Media and former Director, Consumer Research at Yankee Group. The series will explore innovations in cross-platform advertising with a focus on direct response television.

The first piece in the series, titled “The Power of Television,” highlights television’s continued viability as an advertising medium and explores how networks and content providers are using emerging video platforms and market segmentation to grow their audiences and improve their offerings to advertisers.

“Television advertising is not dying,” said Goodman. “Rather than fragmenting the marketplace, emerging video platforms like broadband and mobile TV are acting as audience multipliers.” Goodman points to innovations like Addressable TV, TV Everywhere and Interactive TV as leading the evolution toward “a harmonious video delivery ecosystem.” These platforms have the potential to generate qualified leads and drive sales in record numbers. “Rather than cannibalize traditional television, emerging video platforms, like Hulu, cable VOD and FLO TV, are supplementing viewership and creating new revenue streams for programmers,” said Goodman.

Among Goodman’s top findings are:

    * TV is still the #1 screen. Television viewership remains at hundreds of hours per month, while viewership of broadband and mobile video remains in the low single digits. It is reckless to proclaim that any great revolution is taking place.

    * Consumers want utility not glitz from ads. Consumers are not looking to be entertained by ads. Rather, they want ads that demonstrate the utility of a product or service or solve a problem. Ads should contain calls-to-action, such as an incentive, and give consumers the opportunity to engage with brands through dedicated telephone numbers or URLs.

    * Advertising must be accountable. Metrics like brand awareness, ad recall, persuasion and engagement are insufficient measures of campaign performance. These metrics provide useful insight but do not measure effectiveness in generating leads and driving sales. This is the criteria upon which all ad campaigns should be measured.

    * Direct response advertising creates brands. All advertising leaves an impression about the advertiser, whether its purpose is to create awareness or produce orders. Direct response advertising influences all those that it touches, not just those who respond, so ads need to send a conscious message about the brand, in addition to generating a response.

    * Addressability comes at a cost. The downside of addressable advertising is higher CPMs (cost-per-thousand viewers), but if addressable advertising allows you to get better-quality leads with either a higher profit per sale or higher conversion rates, then it is a worthwhile investment.

About Mercury Media

Mercury Media is the largest privately-owned, full service direct response media agency in the country, headquartered in Marlboro, Massachusetts with an offices in Santa Monica, California and New York City. The agency launched the first full service Hispanic direct response specialty practice, Mercury en Español, in 2009. Established in 1989, Mercury Media specializes in long form, short form and digital direct response advertising and is committed to providing its clients with best-in-class measured media solutions across multiple platforms to achieve their strategic objectives and maximize their return on investment. By leveraging its unparalleled experience in direct response media and cutting edge analytics, the agency develops and executes innovative media campaigns that deliver superior results. For additional information regarding Mercury Media’s clients, services and expertise please visit: www.mercurymedia.com For original articles, please visit The Mercury Index Blog at www.mercurymedia.wordpress.com. Follow us on Twitter: www.twitter.com/mercurymediadr
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USPS Telegraphs Expected Standard Mail Incentive Plan for 2010

2010-02-18T16:32:04-07:00

Dear ACMA Members & Nonmembers:

If you are an ACMA member, you are well aware that the USPS is anticipating launching a 2010 version of the “Summer Sale.” You have been following the updates through emails, conference calls and the member side of the ACMA website postings (www.CatalogMailers.org) so the rest of this will be no surprise to you.

The latest news is that a USPS filing with the Postal Regulatory Commission for this incentive is expected at the end of this month or early next month. This coming incentive is very similar to the prior one. Here is what the program looks like right now:

Incentive period: July 1 to Sept. 30, 2010
Products: All Standard Mail (SM) letters and flats
Control months: June and October
Rebate amount: 30% off applicable rate above baseline
Baseline: Same Period Last Year (SPLY) + 5% (i.e. 105% of what you actually mailed in the July to Sept. 2009 period)
Control: Downward adjustment if June or Oct volume are below baseline (prevents shifting of volume into incentive period)
Qualification: Customers must have mailed more than 350,000 SM pieces in the baseline period of July 1 to Sept. 30, 2009. This covers approximately 3,525 customers or 67% of SM. Mail Service Providers (the printers and preparers that physically execute your mail and give it to the USPS) are not eligible to aggregate volume on behalf of their customers.

The fine print is expected largely to be the same as in the past. Note that this is not official yet. The USPS must sign off and submit the program to the PRC then the postal regulators must approve it before it is definite. But ACMA is now handicapping this as 85% likely.

In the interest of brevity, we won’t cover all the issues or our perspective on this plan. ACMA has been very active on these issues for more than a year. We are continuing our work with the USPS on developing a permanent incentive structure that can be put in place. That is a much better solution for both catalogers and the USPS than a temporary incentive program that may or may not occur.

If you are not a member of ACMA, not only were you not aware of all these details until a public announcement was made today, but you are also failing to have your company’s needs represented in the work. Also, since ACMA still does not have the appropriate level of resources needed to make all of this happen on your behalf accurately and quickly, all catalogers are suffering. Please do your part to change that!

Quick industry remainder: May 2011 is the deadline for having a valid Intelligent Mail barcode (IMb) on all your mail pieces to qualify for automation discounts. POSTNET codes will not qualify after this date. More information on these and other topics will be posted shortly on the member side of the ACMA site (www.catalogmailers.org).

We are happy to provide more information on any of these topics.

Members Only Exclusive

For another special update, members can log on to the ACMA website and go to the Member Area page.

Best regards,

Hamilton Davison
President & Executive Director
American Catalog Mailers Association
www.catalogmailers.org
Telephone: 1-800-509-9514
Email: hdavison@catalogmailers.org
Direct telephone: 1-401-529-8183

First-of-its-kind research: Facebook fan pages are effective marketing tool

2010-02-18T12:22:29-07:00

HOUSTON, Rice University -- Companies that use the popular social-media site Facebook and its fan page module to market themselves to customers can increase sales, word-of-mouth marketing and customer loyalty significantly among a subset of their customers, according to new research from Rice University's Jones Graduate School of Business. The study is featured in the March issue of the Harvard Business Review.

Research for the article, "How Effective is Facebook Marketing?", was conducted by Utpal Dholakia, associate professor of management at Rice University's Jones Graduate School of Business, and Emily Durham, a Jones School alumna and founder of Restaurant Connections, a Houston?\based restaurant consultancy.

Dholakia and Durham surveyed customers of Dessert Gallery (DG), a popular Houston-based café chain. Prior to the study, DG did not have a Facebook presence.

The study, based on surveys of more than 1,700 respondents over a three-month period, found that compared with typical Dessert Gallery customers, the company's Facebook fans:

·         Made 36 percent more visits to DG's stores each month.
·         Spent 45 percent more of their eating-out dollars at DG.
·         Spent 33 percent more at DG's stores.
·         Had 14 percent higher emotional attachment to the DG brand.
·         Had 41 percent greater psychological loyalty toward DG.

According to Dholakia, the results indicate that Facebook fan pages offer an effective and low-cost way of social-media marketing.

"We must be cautious in interpreting the study's results," Dholakia said. "The fact that only about 5 percent of the firm's 13,000 customers became Facebook fans within three months indicates that Facebook fan pages may work best as niche marketing programs targeted to customers who regularly use Facebook. Social-media marketing must be employed judiciously with other types of marketing programs."

Dholakia said Facebook marketing programs may be especially effective for iconic brands, which appear to attract a higher percentage of their customer base as Facebook fans.

For more information or to interview Dholakia, contact David Ruth at druth@rice.edu or 713-348-6327.

Related materials:

Read the Harvard Business Review story
http://hbr.org/2010/03/one-cafe-chains-facebook-experiment/ar/1

Dessert Gallery Facebook fan page
http://www.facebook.com/DessertGallery#!/pages/Dessert-Gallery-Bakery-Cafe/94510147325?ref=ts

To read Utpal Dholakia's bio, http://www.business.rice.edu/facultycv/bios/Utpal_Dholakia_Bio.pdf
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The Knot Unveils 2009 Real Weddings Survey Results

2010-02-18T08:49:15-07:00

Annual survey of 21,000+ recent brides across the country reveals detailed insight into American weddings, from spending to style preferences and trends.

NEW YORK-- The Knot Inc. (NASDAQ: KNOT), the premier media company devoted to weddings, babies, and everything in between and the owners of The Knot Wedding Network (including the top two most-trafficked wedding websites and communities, TheKnot.com and WeddingChannel.com), releases its annual Real Weddings Survey of over 21,000 US couples married in 2009 to capture detailed feedback on wedding spending, style preferences, event characteristics, and other key information related to the bridal demographic.

The fourth annual The Knot Real Weddings Survey, the largest survey of its kind conducted in the bridal industry, was administered by third-party research firm Decipher.

2009 WEDDING BUDGET SURVEY RESULTS

In 2009, $28,385 was the average wedding budget in the US (not including the honeymoon) reflecting less than a 5% decrease from 2008.

“As the economy continues to affect consumer spending, brides remain committed to planning a memorable event and are thoughtfully cutting back,” said Carley Roney, editor in chief of The Knot Inc. “Approximately one third of brides who had a wedding in 2009 said that the economy had impacted their overall wedding plans.”


Category *		Average Spend 2009
Reception Venue		$12,838
Reception Band		$3,288
Reception DJ		$892
Photographer		$2,444
Videographer		$1,481
Wedding/Event Planner		$1,728
Wedding Gown		$1,134
Florist/Decor		$2,093
Invitations		$509
Wedding Cake		$559
Ceremony Musicians		$451
Catering (cost per head)		$63
Wedding Day Transportation		$692
Favors		$292
Rehearsal Dinner		$1,163
Engagement Ring		$5,847

*Respondents who hired professional vendor, purchased items, or had them professionally made

GENERAL WEDDING STATISTICS

(Data typically does not change year over year)

Number of guests: 149 (nearly the same as 2008)
Number of bridesmaids: 5
Number of groomsmen: 5
Length of engagement: 13.4 months
Most popular month to get engaged: December (16%)
Most popular month to have wedding: June (17%)

TOP 10 NATIONAL 2009 HIGHLIGHTS

1.		TOP PRIORITIES: Venue, Band/ DJ and Photography: The bulk of the average wedding budget is still dominated by the reception venue ($12,838); followed by the reception band and or DJ ($3,288 and $892 on average); and photography ($2,444 on average).

2.		WEDDING-RELATED EVENTS: Extra Parties and Extra Price Tags: Weddings continue to become multiple-day affairs (average is three days). Approximately 87% of couples had a rehearsal dinner costing $1,163 on average and nearly 30% of couples hosted an after-party the day of their wedding (an increase over 11.5% over 2008).

3.		BUDGETS: Everyone’s Contributing: In today’s challenging economic climate, the bride’s parents are contributing somewhat more to the wedding budget, on average (46% of the budget, a 4.5% increase over 2008) followed by the bride and groom (40% of the budget). Grooms’ parents also contributed (12% of the budget).

4.		MUSIC: Couples Want a Bit of Everything: In 2009, couples who hired a band chose a mix of music styles, including oldies and pop (26%) followed by rock and ’80s (24% and 17%).

5.		FORMALITY: Weddings Remain More Casual: Weddings continue to be less formal with only 20% of weddings in 2009 being characterized as “formal/black tie.”

6.		PLANNERS: Brides Still Turn to Professional Help: Of the 19% of brides who hire a professional wedding planner, the results were split fairly evenly between day-of coordination (48%) and full service (41%).

7.		CAKE: Inventive New Flavors: Although traditional flavors like vanilla and chocolate remain most popular (50%), couples are also choosing more unusual flavors for their wedding cakes such as lemon, cream cheese, and red velvet (13%, 10%, and 10% respectively).

8.		COLORS: Brides Chose More Jewel Tones: Taking a cue from the fashion runways, brides are increasingly incorporating more jewel tones, like purple, into their weddings (a 50% increase over 2008) and forgoing historically popular shades like brown (a decline of 19% over 2008).

9.		WEDDING THEME: Brides Make It Unique: Over 29% of brides incorporate a wedding logo or monogram into their wedding day details; 15% include special signature cocktails at the reception (a 25% increase from 2008).

10.		DIY: Most Brides Have at Least One DIY Element: The average number of DIY elements was three; the top DIY categories were ceremony programs (54%), favors (50%), and escort cards (44%).

INTERESTING REGIONAL DIFFERENCES

This annual Real Weddings Survey can be broken down on a region-by-region basis across more than 60 markets.

Regional highlights include:

New York City and Long Island have the highest wedding budget ($56,999 and $55,877 respectively). Arkansas has the lowest wedding budget ($15,073), followed by Idaho and Utah ($15,276 and $16,030 respectively).
Northeast brides have the longest engagements (15 months), while brides from Alabama, Tennessee, Kentucky, and Mississippi have the shortest (12 months).
Rhode Island, North and Central New Jersey, and Philadelphia couples are most likely to go on a honeymoon (93%, 92%, and 91% respectively).
Iowa and Nebraska couples still have the largest weddings, with more than 200 guests. Hawaii and Las Vegas have the smallest number of wedding guests (96 and 68), largely due to the high proportion of destination weddings in these regions.
Hawaii and Cincinnati have the most casual weddings, while North and Central New Jersey and Long Island have the most formal (black tie).
Couples from Toledo, Columbus, and Minnesota are most likely to register (97%).

About the Survey: More than 21,000 US couples -- of mixed ethnicities, education, and income levels -- were polled across 50 states. Wedding dates of those polled fell between January 2009 and December 2009.

About The Knot Inc.

The Knot Inc. is the premier media company devoted to weddings, pregnancy, and everything in between, providing young women with the trusted information, products, and advice they need to guide them through the most transformative events of their lives. Our family of premium brands began with the industry's #1 wedding brand, The Knot, and has grown to include The Nest and The Bump. Our groundbreaking community platforms and incomparable content have ignited passionate communities across the country. The Knot Inc. is recognized by the industry for being innovative in all media -- from the web to social media and mobile, to magazines and books, to television and video. For our advertisers and partners, The Knot Inc. offers the consummate opportunity to connect with our devoted communities as they make the most important decisions of their lives.
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CIT Study Finds U.S. Small Businesses Intend to Use Lessons Learned from Economic Downturn to Grow Revenues in 2010

2010-02-18T08:42:58-07:00

    * 60% Expect Their Business to Achieve Growth in 2010
    * 70% Say Surviving Recession Has Made Them Better Leaders
    * 81% Feel Smarter About Running Their Company
    * 90% Believe Current Stimulus Has Fallen Short

NEW YORK-- U.S. small business owners intend to grow their companies in 2010 by applying lessons learned from the recession, according to an exclusive study released today by CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies.

The research report, “U.S. Small Business Outlook 2010: Lessons Learned – A Case for Greater Optimism,” developed in association with Forbes Insights, reveals that a majority of small business owners feel more confident and better positioned to advance their business this year as a result of having survived the past 12-18 months. A significant 81% of respondents said that they are now smarter about running their businesses, and 70% said the challenges of the recession have made them stronger leaders. Additionally, nearly half (45%) agreed that the recession exposed flaws in their business strategies that were previously not apparent to them.

“Our study found that a surprisingly high percentage of small business owners are more optimistic about 2010 after having survived the worst of the recession,” notes Chris Reilly, President of CIT Small Business Lending. “Many believe that the survival strategies they’ve implemented and hard lessons they’ve learned have better positioned them for growth this year.”

Greater Optimism for Growth in 2010, Despite a Challenging Environment

A majority of the small business owners surveyed indicate greater optimism about their 2010 growth prospects, with 60% of respondents expecting their companies to grow (53%) or grow significantly (7%) this year. Less than a third (28%) expect their revenues to be flat and just 12% anticipate a decline. At the same time, small business owners are still feeling the pressure of the current economic environment, with 71% agreeing that they are working harder and longer than ever before, and nearly a third (29%) indicating that the recession has made them doubt their commitment to running a small business.

Small businesses also believe they will play a key role in the U.S. economic recovery, but in spite of, rather than assisted by, support from the federal government. Nine out of 10 respondents agreed that current stimulus has not provided any benefits. Still, small business owners remain hopeful that Washington will take action to help them, particularly in the area of financing. Fifty-eight percent agreed that higher Small Business Administration (SBA) loan limits would benefit small businesses.

“Many small businesses expect to fare better this year than last, but the current environment is still a challenging one, mainly due to lack of available financing,” Reilly continued. “This is why CIT has allocated up to $500 million in funding for small businesses in 2010, and has waived the packaging fee on all new loan applications through March 10. It's also why we strongly support the Small Business Job Creation and Access to Capital Act of 2009 and the Obama Administration’s recently announced plan to make $30 billion available for small business loans.”

Taking Action to Improve 2010 Business Performance

CIT’s study also reveals that a majority of small business leaders (64%) intend to be more aggressive in 2010 by implementing a range of actions to advance their businesses. A full 59% of respondents cited a greater focus on operating efficiencies as the number one step to achieving growth in 2010. At the same time, 62% plan to invest more in marketing and advertising, while 50% will invest in expansion and 46% will pursue new revenue streams.

Stuart Feil, Editorial Director of Forbes Insights, said, “A significant number of small business owners are taking strategic steps to improve efficiencies and diversify revenue streams so their businesses can achieve an even stronger upswing as their markets recover. Seventy-eight percent of respondents acknowledged that the old way of doing business will no longer work and that they need to find new ways to take advantage of market opportunities. This explains why many are planning to be more aggressive with their marketing spend this year as a means of grabbing market share from competitors.”

Noteworthy Findings:

    * Cash Flow Pressures Mounting: During 2009, falling income put additional pressure on small business cash flow, as evidenced by the 64% of respondents who said cash flow was harder to manage last year. As a result, companies turned to cutbacks over boosting financial reserves. Reducing overhead and expenses (63%) led the list of actions companies took, followed by travel/entertainment cutbacks (55%) and reducing workforce size (45%). Just 11% said they sought new lines of credit and financing.
    * Majority See Importance of Planning, but Do Not Have Plans in Place: Small business owners recognize the importance of planning amid the new economic environment and want to spend more time doing it. Eighty-five percent of respondents agreed (65%) or strongly agreed (20%) that the recession put additional pressure on their businesses to plan more effectively. Moreover, 61% indicated they would spend more time on planning and budgets in 2010 than they did in 2009. However, only 44% indicated they had a strategy in place to guide growth during the coming recovery period. Another 44% said they were working on one and 11% indicated they did not have any plan.

EDITOR’S NOTE:

To download a free copy of the report, please visit http://middlemarket.cit.com. Individuals interested in listening to a podcast featuring Ms. Reilly regarding “The Importance of Financing Small Business” can download it at www.5minutecapital.com. Separately, Ms. Reilly provides additional commentary on “Helping Small Businesses Navigate the Current Market Downturn,” in a recent installment of CIT’s Executive Spotlight series, which is available at: http://executive-spotlight.cit.com

About the Report

“U.S. Small Business Outlook 2010: Lessons Learned – A Case for Greater Optimism,” is the final installment in a series of four in-depth studies on the small and middle market produced by Forbes Insights in association with CIT. The information in the report is based on the results of a survey of 220 U.S.-based small business owners and leaders, as well as a series of one-on-one interviews, conducted between December 2009 and January 2010. All companies had revenues between $1 million and $5 million, and $5 million and $15 million, and operated as for-profit entities. Respondents represented companies in a broad range of industries including business and professional services, engineering and construction, financial management, investing or advisory, retail, technology/telecommunications, and others. Sixty-one percent of those surveyed described themselves as small business owners, 30% held C-level titles, and the remaining 8% held other top management positions.

About Forbes Insights

Forbes Insights is the custom research practice of Forbes Media, publisher of Forbes Magazine and Forbes.com (www.forbes.com), whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights’ research covers a wide range of vital business issues such as talent management, corporate social responsibility, financial benchmarking, risk and regulation, and doing business in emerging markets. www.forbes.com/forbesinsights

Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com

About CIT

CIT (NYSE: CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual, and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com
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PS Real Estate Group Licenses Maponics Neighborhood and ZIP Code Boundary Data for its Platforms

2010-02-16T15:48:56-07:00

Norwich, Vt. – Maponics announced today that the Real Estate Division of Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, has chosen Maponics for the boundary data required to enable local searching of its property databases. Through this agreement, all ZIP Code and neighborhood-based searches, maps and analytics provided through LPS Real Estate Group’s desktop and web-based information distribution networks will use Maponics neighborhood and ZIP Code boundary data definitions.

“We’re excited about this new partnership with Maponics, because it helps our users pull accurate, community-level information from our database of millions of properties nationwide,” said John Hensley, Chief Product and Technology Officer for LPS Real Estate Group. “Choosing the best local map data provider was important to us, because real estate professionals know their neighborhoods like the back of their hand.”

“LPS Real Estate Group is a central player in the real estate industry and Maponics is very proud to be its partner,” said Darrin Clement, Chief Executive Officer of Maponics. “Our commitment to quarterly updates and the continual expansion of features accompanying each of our datasets have made us the top provider of local map data to the real estate industry.”

About Lender Processing Services
LPS is a leading provider of integrated technology and services to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop) portfolio retention and default, augmented by the company’s award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS’ Mortgage Servicing Package (MSP). In fact, many of the nation's top servicers rely on MSP, including 8 of the top 10 and 14 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, please visit www.lpsvcs.com.

The LPS Real Estate Group has relationships with more than 300 MLS organizations, 250 broker companies, settlement services companies, and more than 350,000 real estate professionals. The technology applications include innovative tools such as Paragon™; the reInsight™ collection; rDesk® Broker & Agent Suite of products; TransactionPoint®; DocCentral; Cyberhomes; the Real Estate & Living Media Network that generates revenue for its publishers; as well as a robust real estate property and tax database that includes 285 million residential and commercial property, ownership, sales, assessment and mortgage records. This represents detailed information on at least 92 percent of U.S. property ownership records in more than 2,000 counties with over 648,000 new ownership records added monthly. To learn more, visit www.lpsreg.com.

About Maponics
Maponics specializes in location-based data and information for businesses, including neighborhood, carrier route and ZIP Code boundary data. Local search, real estate, mobile, social media and marketing firms rely on Maponics to power ultra-local interactive search, mapping, and ad targeting platforms, including Google ®, Trulia ®, Citysearch ®, Yellow Book USA ®, infoUSA ® , D&B, Dominion Enterprises ® (eNeighborhoods ®, Homes.com ® and ForRent.com ®), AccuData ®, Zvents ®, HelloMetro, CitySquares ®, Loopt ®, Monster.com ®, Zillow ®, Lowe’s ® and many others. The Maponics Online Store, powered by Maponics data, is the only place USPS.com refers to for postal maps. The company is located in Norwich, Vermont. Additional information can be found at http://www.maponics.com

Maponics and/or other noted Maponics related products contained herein are registered trademarks or trademarks of Maponics, LLC. All other registered and unregistered trademarks herein are the sole property of their respective owners. (C) 2010 Maponics, LLC. All rights reserved.
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Customer Satisfaction with E-Commerce Rebounds, According to American Customer Satisfaction Index

2010-02-16T14:47:39-07:00

Online Brokerage Surges with the Market; E-Retail and Online Travel Sites Also Make Gains

ANN ARBOR, Mich.--Customer satisfaction with e-commerce websites stages a comeback a year after suffering its first decline since 2004, according to the American Customer Satisfaction Index (ACSI). The e-commerce sector gains 1.8% to 81.4 on ACSI’s 100-point scale, nearly matching its all-time high of 81.6 set in 2007. The annual ACSI e-commerce report measures customer satisfaction with online retail, online brokerage, and online travel companies.

The increase in the overall e-commerce sector (made up of the e-retail, online brokerage, and online travel industries) is clearly driven by the rebounding online brokerage industry, which surges 5% to 78 after it lost 6% last year amid a crashing stock market. But e-retail (+1% to 83) and Internet travel (+3% to 77) also improves over last year.

“It’s no surprise that satisfaction with online brokerages is linked to the stock market. When the market crashes, customers aren’t happy. When it recovers, they feel better about their experience,” said Claes Fornell, ACSI founder, professor at the University of Michigan, and author of The Satisfied Customer. “But the improvements in e-retail and online travel are a good sign that consumers may be ready to spend again, if they can find the means to do so.”

Today’s report marks the tenth anniversary of the inclusion of online businesses in the ACSI. E-Commerce as a sector has improved more than 8 % since it was first measured by ACSI in 2000.

“Ten years in internet commerce is a lifetime,” said Larry Freed, president and CEO of ForeSee Results. “The fast pace allows companies to succeed or fail much faster than was ever the case thirty years ago. The business advancements made in just ten years are incredible, and some of these companies have become models of innovation and strategy for organizations across all channels.”

Online Brokerage

The online financial services industry improves more than any other, and the biggest gainers are the smaller companies that dropped the most in the depths of the recession. Fidelity, despite a small drop in score, continues to lead the sector (-1% to 79) along with Charles Schwab (+1% to 79). The uptick in the industry overall is largely attributable to huge gains by E*Trade (+7% to 74) and TD Ameritrade (+7% to 76).

Online Retail

E-retail rises 1% to 83 and continues to be the highest scoring industry in the e-commerce sector. Additionally, satisfaction with online retail far exceeds satisfaction with brick and mortar retail (76). E-retail is the only industry in the e-commerce sector to score above 80, which is considered the threshold for excellence for the Index. Netflix (+2% to 87) leads the Index for the first time, with Newegg (-2% to 86) and Amazon.com (stable at 86) closely following.

“The dramatic increase in satisfaction with the e-retail industry over the last ten years has been driven largely by the success of pure-play e-retailers” said Kevin Ertell, Vice President of Retail Strategy at ForeSee Results. “The retailers who are only selling online have, for the most part, paid better attention to customer needs and expectations and have worked to create a better online software experience for their customers.”

Online Travel

Customer satisfaction with online travel increases for the first time in five years, matching its all-time high of 77.

Expedia (+3% to 79) remains the top-scorer of the sector. Of the companies rated, Priceline.com experiences the biggest gain, increasing 7% to 76. Over the past few years, the company has moved away from their “Name Your Own Price” auction bid approach to booking travel reservations along the lines of conventional, full-service online travel agencies. Additionally, the company launched a top-rated mobile application allowing users to research and book hotels on the go.

A free report with ten years of historical scores for all of the e-commerce companies measured by the ACSI is available at www.ForeSeeResults.com.


Overall E-Commerce Aggregate		81.4

E-Retail Aggregate		83
Netflix		87
Newegg		86
Amazon.com, Inc.		86
All Others		83
Overstock.com		82
eBay Inc.		79

E-Brokerage Aggregate		78
Fidelity		79
The Charles Schwab Corporation		79
All Others		78
TD Ameritrade		76
E*TRADE Financial Corporation		74

Online Travel Aggregate		77
Expedia, Inc.		79
All Others		78
Orbitz, LLC		76
Priceline.com Incorporated		76
Travelocity.com L.P.		75

About ForeSee Results

As the leader in online customer satisfaction measurement, ForeSee Results captures and analyzes online voice of customer data to help organizations increase sales, loyalty, recommendations and website value. Using the methodology of the American Customer Satisfaction Index (ACSI), ForeSee Results identifies the improvements to websites and other online initiatives with the greatest ROI. With more than 44 million survey responses collected to date and benchmarks across dozens of industries, ForeSee Results offers unparalleled expertise in customer satisfaction measurement and management particularly in the e-retail category, with more than 140 retail measures in ForeSee Results benchmarks.

ForeSee Results, a privately held company, is headquartered in Ann Arbor, Michigan; has offices in London and Toronto; and can be found online at www.ForeSeeResults.com.

About the ACSI

The American Customer Satisfaction Index is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the United States. It is updated each quarter with new measures for different sectors of the economy replacing data from the prior year. The overall ACSI score for a given quarter factors in scores from more than 200 companies in 44 industries and from government agencies over the previous four quarters. The Index was founded at the University of Michigan's Ross School of Business and is produced by ACSI, LLC.
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Changing Models: A Global Perspective on Paying for Content Online

2010-02-16T14:41:56-07:00

Will consumers pay for online news and entertainment they now get for free?

Nielsen asked more than 27,000 consumers across 52 countries, and the answer is a definite “maybe.” As expected, the vast majority (85%) prefer that free content remain free. Yet there are opportunities to be found in the details. Indeed, when asked to focus on specific types of content, survey participants are more willing to at least consider paying for particular categories, especially if they have done so before.

Will Pay / Won’t Pay
Online content for which consumers are most likely to pay—or have already paid—are those they normally pay for offline, including theatrical movies, music, games and select videos such as current television shows. These tend to be professionally produced at comparatively high costs.

Consumers are least likely to pay for content that is essentially homegrown online, often by other consumers at fairly low cost. These include social communities, podcasts, consumer-generated videos and blogs.

In between are an array of news formats—newspapers, magazines, Internet-only news sources and radio news and talk shows—created by professionals, relatively expensive to produce and, in the case of newspapers and magazines, commonly sold offline. Yet much of their content has basically become a commodity, readily available elsewhere for free.

Compensation Conditions

Whatever their preferences, consumers worldwide generally agree that online content will have to meet certain criteria before they shell out money to access it:

Better than three out of every four survey participants (78%) believe if they already subscribe to a newspaper, magazine, radio or television service they should be able to use its online content for free.
At the same time, 71% of global consumers say online content of any kind will have to be considerably better than what is currently free before they will pay for it.
Nearly eight out of every ten (79%) would no longer use a web site that charges them, presuming they can find the same information at no cost.

As a group, they are ambivalent about whether the quality of online content would suffer if companies could not charge for it—34% think so while 30% do not; and the remaining 36% have no firm opinion.

But they are far more united (62%) in their conviction that once they purchase content, it should be theirs to copy or share with whomever they want.

Despite the growing consensus that the media may only be able to generate appreciable online revenues by charging consumers for content, there is little agreement on just how to do that. Companies are experimenting with a range of payment models, from full service subscriptions to individual transactions, or micropayments. Among those surveyed by Nielsen, about half (52%) favor the latter, albeit micropayments have proved cumbersome to implement in the past. But a more manageable system may be no more enticing. Only 43% say an easy payment method would make them more likely to buy content online.

Regardless of what systems they choose, media companies will almost certainly not abandon advertising; and consumers will doubtless still see ads along with paid content. For the 47% of respondents who are willing to accept more advertising to subsidize free content, that may be tolerable. Yet it will probably not sit well with the 64% who believe that if they must pay for content online, there should be no ads.

Find Out More

How do responses from consumers around the world compare?
Are developing markets more likely to embrace a pay-for model?
Does age factor into a willingness to pay?
Which payment methods are the most acceptable?
Where are the best advertising opportunities?

Download Changing Models: A Global Perspective on Paying for Content Online

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