UPS to Test Direct Mail Waters
ByWe deal with it constantly when we check our mail, the endless array of direct mail (junk mail) pieces that end up going in the trash. Now, what if that mail was delivered directly to you? Would you take the time to look through it? UPS thinks so and is testing a new service called UPS Direct to Door. In the five test markets which include Chicago, Dallas/Fort Worth, Miami, Phoenix and Washington, D.C, UPS drivers are delivering small boxes filled with about 12 premium offers and samples to targeted consumers. More than a dozen brands, including Bed Bath & Beyond, FTD.com, Sephora and Zappos.com, are onboard for the pilot program.
The move by UPS is especially interesting considering the current focus on digital delivery systems and a direct mail industry that is expected by some experts to decline 39% over the next five years to $29.8 billion. However, the company is counting on what they view as their secret weapon, its drivers. This rational makes sense in a time where many families know their driver by name and many place a premium on customer service. Lisa Lynn, director of UPS new product development was quoted as saying, “We can leverage the familiarity and trust people place in us to help our customers grow their businesses.”
This taps into the motivation of the consumer by focusing on the delivery source of the information or offers being provided. The advertising brands are banking on the attractiveness of the UPS drivers in terms of their familiarity to increase the motivation of the consumer to use the offerings provided. When considering the match-up-hypothesis, where the source must be appropriate for the product, UPS is a natural fit for entry into the direct mail arena and possible success in breaking through the clutter with a personal touch. This leads us to another benefit, less waste! In a time where going green is the thing to do, personalizing the delivery system encourages use and decreases the likelihood the offerings end up in the trash. Time will tell if UPS is successful with their direct mail focus and if the benefits to the advertisers, consumers, and environment are significant.
http://www.adweek.com/aw/content_display/news/nontraditional/e3ife9d9d88fcefbcdc37401a3f71d837d5
2 Comments
December 9th, 2009 at 10:59 am
This is a very interesting new program. I find it relevant to the time in that consumers do not want to be bombarded with junk mail in their mailbox, but they would be more responsive to looking at the mail if a nice personable mail man were to bring it to their front door. This also develops the relationships between UPS drivers and the people they deliver to. However, I think the idea is surrounded by many issues. First of all, why should junk mail get a higher priority than direct mail in that the junk is delivered directly to their door and the direct mail to the mailbox? This also begs the question as to who gets this mail? Anyone in the company’s target? Opt-in consumers? If people have not volunteered to receive this mail prior to it being delivered, they may not find it relevant to them and may take their frustrations out on UPS drivers. Then they associate negativity with UPS and there is the possibility that it could harm the UPS reputation and the companies who are involved in the mailings, even though there is the benefit of this junk mail breaking through the clutter. What happens when the people are not there to deliver the mail to? How does this become any different from leaving the mail in the mailbox when UPS drivers leave the junk mail on the doorstep? Also, are the UPS drivers going to be trained in how to be personable when delivering? Not all delivery people are blessed with the ability to relate to everyone. There are certain skills that some drivers may need to learn in order to help the people they deliver to feel more comfortable and then positively associate UPS with friendliness and service.
Altogether, I’m very wary of this program. There are many implications for the companies involved and UPS as a delivery service. This trial should be closely monitored to ensure that it is successful and does not tarnish any reputations.
December 9th, 2009 at 8:59 pm
Great points Kelli! The results of the trial run in the selected markets will be very interesting. Diversifying ones product line is a great way to increase revenue and this move has the potential to be a profitable revenue stream if done well. We will see!