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UK businesses wasting £1bn annually on mistargeted direct mail

27th January 2016 • News

New research reveals that mistargeted direct mail is costing UK businesses almost a billion pounds (£965,800,000) each year, comprising £772,800,000 of unrealised revenue and £192,000,000 production costs.

The findings by The Software Bureau come in the wake of the company’s launch of a new offering to minimise direct mail wastage: Lean DM.

Following a six month consultation period the firm has identified five key sources of direct mail wastage, which result in almost one in 12 pieces of direct mail being rendered obsolete:

1. Pack design
2. Postage optimisation
3. Data formatting
4. Data quality
5. Failure of feedback loop

These five areas result in poor response rates, increased overall campaign costs and ultimately unhappy customers – both consumers and direct mailers.

Lean DM is a new workflow package from The Software Bureau that is run through its Cygnus data processing suite which systematically addresses each of the five sources of waste and highlights opportunities to both optimise mailings and save money. It provides an easy solution for both direct mail producers and end users.

For direct mail producers Lean DM represents a new revenue stream which demonstrably minimises direct mail wastage. It can also save end clients thousands of pounds for every direct mail campaign sent out. Lean DM increases direct mail ROI, reduces brand damage associated with mistargeted mail and ultimately enables more responsible direct marketing in line with governmental and ICO dictates.

Martin Rides, MD, The Software Bureau, commented: “£1 billion is an eye watering amount of money to burn. Millions of mailings are wasted each year, but because of good response rates, favourable ROI and the perception of hard work and added costs to rectify the problem a blind eye has largely been turned. However, with increasing pressure for responsible marketing and demand for even better ROI, wastage can no longer be put to one side. Lean DM battles it head on and wins.”

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