Navigating the Shift: Direct Mail’s Role in a World Without Third-Party Cookies

Even seasoned marketers can find it challenging to stay on top of the latest developments in the digital advertising industry. The anticipated phase-out of third-party cookies by Google this year marks another disruptive change in an uncertain market. Now that it is upon us, many marketers are scrambling to fully understand its implications for their strategies and budget allocations.

In light of this shift to a post-cookie landscape, it is crucial for direct marketers to evaluate several key facets of their marketing program.

The Rising Cost and Complexity of Digital Acquisition

Since rebounding from the pandemic, digital advertising spending has continued to grow. However, like many other aspects of the economy, costs have surged across major platforms.

Companies are keen to reach new customers through digital channels, but privacy changes and the competition for attention have made it increasingly challenging. Additionally, the emergence of Retail Media and Connected TV has significantly influenced budgets and strategies for marketers. The phase-out of third-party cookies is poised to add further pressure to Cost Per Acquisition (CPA) as marketers adapt to the evolving digital data landscape.

Measurement remains a critical concern, with ongoing shifts such as Google’s introduction of new products like Privacy Sandbox and Meridian.

These changes are causing significant challenges for the digital advertising industry, as marketers are under tremendous pressure to deliver results. With budgets growing yet remaining tight, there is little room for inefficiency.

Direct Mail Delivers

While direct mail may have a higher Cost Per Acquisition (CPA), it justifies this with a significant Return on Investment (ROI) of 161 percent for house lists, as reported by the ANA 2024 Response Rate Report. In contrast, email house lists yield an ROI of 44%, and social media ads come in at 21%. This stark difference underscores direct mail’s crucial contribution to an omnichannel strategy, highlighting its efficiency and effectiveness in reaching and engaging customers.

Despite its effectiveness, direct mail is not without its challenges, notably the significant increase in postal rates over recent years. These challenges have compelled direct marketers to prioritize data, production and postal optimization to ensure their direct mail campaigns effectively reach the intended audience and yield tangible results for brands.

We exist in an omnichannel environment where actions in one channel invariably affect other channels. Will the elimination of third-party cookies prompt brands to shift their spending from digital to direct mail marketing? Through the use of meta-models and digital overlays (matching direct mail to the digital universe for integrated advertising), marketers can optimize how they engage customers across both channels in a targeted and personalized manner.

What’s the key?

The Unmatched Value of Household Addresses

 

Household addresses have proven to be an indispensable data set for marketers amidst evolving privacy regulations impacting digital advertising. As identifying consumers online becomes increasingly complex, household addresses emerge as a steadfast identifier.

“In contrast to ephemeral digital identifiers, a physical address offers a stable and reliable way to reach consumers directly within their homes,” says Nahan VP of Strategy, Alan Sherman

This durability makes household addresses an invaluable resource for marketing, facilitating targeted and personalized communications that navigate privacy concerns while effectively engaging the target audience. Such enduring value cements direct mail’s role as a dependable and stable channel in the midst of the digital landscape’s uncertainties. In addition, the availability of home address combined with name makes possible the appending of demographic and other data essential for marketing analytics.

Navigating Omnichannel Marketing Complexity with Expertise

Navigating the current marketing landscape has become increasingly complex in the post-pandemic economy, where shifts, such as the phasing out of third-party cookies and the introduction of new tools by major platforms, can significantly impact strategies.

At Nahan, we view these changes in digital advertising as opportunities for brands that are agile and prepared to confidently pursue data optimization. We recognize that each brand faces unique marketing challenges and are committed to helping navigate these opportunities to achieve their growth objectives.

We assist brands in leveraging data-driven insights, optimizing channel mix, and deploying cutting-edge technologies for precise targeting and personalization. Our goal is to ensure that marketing strategies not only comply with current regulations but are also well-positioned for future shifts in the digital ecosystem.

Conclusion

As we conclude, it’s essential to recognize the dynamic nature of digital targeting and the critical role of integrating advanced direct mail strategies into the omnichannel marketing mix. This integration ensures privacy, enables personalization, and drives high engagement with customers, addressing the challenges and opportunities presented by the evolving marketing landscape.

Let’s connect! We’re eager to discuss how direct mail campaigns can elevate your marketing strategy.


Nahan Achieves Star Two – AIM in PIM’s Diversity, Equity & Inclusion (DE&I) Accreditation Program

(SAINT CLOUD, Minn.) – February 29, 2024 – Nahan is thrilled to announce it has achieved Star Two – AIM, in the Printing Industry Midwest’s (PIM) Diversity, Equity & Inclusion (DE&I) Accreditation Program. This milestone reflects Nahan’s ongoing dedication to advancing DE&I within its operations and the broader industry. Building on the foundational Star One – Commitment award, this new recognition underscores Nahan’s proactive measures to foster a more inclusive and equitable workplace.

In achieving Star Two – AIM, Nahan has made significant strides in embedding diversity, equity, and inclusion (DE&I) into the fabric of its organization. This achievement reflects a dedicated review of operational ethos, with a shift towards creating an environment that not only welcomes but actively champions diversity.

“We’ve innovated our approach to talent acquisition and management, ensuring our practices and policies not only meet but exceed the standards for inclusivity. Through a holistic evaluation of our procedures, from recruitment to supplier relationships, Nahan has set a new benchmark for DE&I commitment, embodying our belief in the power of diverse perspectives to drive meaningful progress,” says Elena Taylor, Director of Human Resources.

Chad Coss, VP, Human Resources at Nahan continues: “We believe that a commitment to diversity, equity, and inclusion is not just morally right, but is also critical to our success as a business. Achieving the Star Two – AIM is a testament to our team’s hard work and the actionable steps we’ve taken to make our workplace and industry more inclusive. We’re not just aiming for change; we’re making it happen, and we will continue to build on this momentum to ensure DE&I remains at the heart of our operations.”

The Star Two – AIM level is part of PIM’s structured DE&I Accreditation Program, designed to support companies in the print and graphic communications industry in developing and implementing DE&I initiatives. Nahan is among the pioneering companies to navigate this progressive path, reinforcing its role as a leader in promoting diversity and inclusivity within the industry.

About Nahan
Nahan is a premier provider of direct marketing and print solutions, offering a comprehensive suite of services including strategy, creative, data, analytics, print production, mailing, logistics, and fulfillment. From its beginnings in 1962, Nahan has grown from a family-owned print shop to a dynamic team of professionals dedicated to delivering marketing strategies and solutions that drive results. For more information, visit www.Nahan.com.

About Printing Industry Midwest (PIM)
Printing Industry Midwest (PIM) is the trade association for print service providers in Iowa, Minnesota, Nebraska, North Dakota, and South Dakota. PIM supports the print and graphic communications industry through resources that promote growth and sustainability. For more details, visit www.pimw.org or contact PIM at 612.400.6200.

About PIM’s DE&I Program
The PIM Diversity, Equity & Inclusion (DE&I) Accreditation Program, driven by the PIM Diversity Coalition, aims to foster foundational changes in industry practices related to recruiting, hiring, and training. The program sets benchmarks for companies striving to create more diverse and inclusive environments. For more information, please email diversity@pimw.org or visit www.pimw.org/diversity/.

Multi-sourced Data Builds and Improves Upon Single Credit Bureau Data

For most financial and insurance marketers, credit bureau data is the single most important component of direct mail success. When you are partnering with a credit bureau, it’s likely not apparent that an even better data targeting solution exists.

Nahan delivers a higher-performing alternative to single source credit bureau data. Our multi-sourced data solution leverages real-time credit bureau data and enhances performance via the use of additional data sources and a unique and unmatched approach to analytics. Response rates and other metrics typically see improvement of 20-50% over traditional results.

The Challenges with Single Bureau Data

A single bureau relationship covers just 80% of those with a credit history. If a predictive model is used, it frequently uses credit data only. Challenges include older credit data and longer processing times, meaning data is not as fresh and accurate as it could be. There are concerns over data accuracy and quality – up to 15% of bureau files contain invalid data. A single bureau is usually limited in credit inquiry coverage for trigger processing.

Benefits of Nahan’s Real-Time Credit Bureau and Multi-Source Data

We can leverage data from all three major credit bureaus as well as over 20 alt-credit, demographic and specialty files, dramatically increasing coverage and offering over 30,000 data attributes for our META Models. We provide significantly more predictive data with the fastest turnaround from request to delivery. Credit bureau data pulls can be bureaucratic and take some time, whereas our resources contain real-time credit bureau data, received and updated nightly. We can deliver data faster than a bureau – faster means fresher and more accurate. This broadens the scope of lead generation and data analysis, offering a much wider and deeper pool of predictive data attributes.

We feature superior META Models designed to take advantage of diverse credit and ITA data sources and deliver superior results. A multi-model solution delivers better model discrimination, greater predictive accuracy, and a continual updating process. Rather than building traditional predictive models that often grow “stale” and need to be rebuilt over time as business and market conditions change and evolve, our models are continually fed with response data to remain current. These models have the ability to adjust to current business goals, focusing on factors like response, conversion, loan amount, cost of acquisition, quote rate, premium amount and more.

Many of our clients have long-term credit bureau relationships and are reluctant to switch from bureau data they are familiar with. This is not a problem – they can maintain the relationship and the data – we build models that use the data but improve upon it with the inclusion of additional non-bureau data sources.

As part of our services, we include proprietary data linkage and hygiene methods that substantially improve upon USPS NCOA and standard hygiene processing. USPS move forms are typically filled out by only 50% of the population. We use the sheer amount of data that we manage to determine the best addresses for delivery. This increases the precision of targeting and reaches potential customers more effectively. A recent prospect mailing file analysis identified 11% of their mail file was sub-par in quality with an associated 33% drop in response vs. the rest of file. Nahan fixed their future files for superior results.

Discover the power of multi-sourced credit and ITA data in transforming your financial or insurance marketing strategies.

Unlock the Power of Precision Data with Nahan!

Transform your direct marketing with Nahan’s proven, data-driven strategies. Leverage our advanced data capabilities and personalized, results-oriented services to enhance your campaign performance. At Nahan, we prioritize real connections and actionable insights, offering solutions based on proof, not promises. To explore how we can achieve big wins for your direct mail efforts, fill out the form below to speak to one of our dedicated Client Solutions Representatives.

Let’s start a conversation today about your direct mail programs!


7 Things Mailers Need to Know for 2024

As we slide into 2024, we’re coming off a rollercoaster year of uncertainty, bouncing between downbeat predictions about a recession and the possibility of a soft landing with interest rate cuts in 2024. Along the way, the buzz around AI was unavoidable, with many marketers diving headfirst into using new tools like ChatGPT as part of their evolving processes.

Mailers, as always, will be paying close attention to postal rates, which are set to increase again in January, but there’s also good news in the form of marketing mail incentives. We’ve put our heads together, analyzed our news clippings, and have developed what we believe are six things every mailer should keep an eye out for in 2024. Of course, this being the marketing industry, we can probably expect some surprises and new developments. One thing remains certain, though, and that’s the effectiveness of direct mail and catalogs. Direct marketing remains one of the key drivers for acquisition and brand building.

USPS Marketing Mail Incentives and Postage Increases

If there’s one topic that’s sure to get direct mailers talking, it’s postal rates. As with overall inflation, rates have climbed steadily the last few years with additional price increase arriving in January and July. However, there are ways for mailers to save money with some exceptional discounts and promotions. This is one area where mailers want to make sure they are working with partners that understand the intricacies of these promotions.

In 2024, the USPS is introducing a significant volume discount, presenting an opportunity for substantial savings on mail campaigns:

30% Discount: Mailers sending volumes above fiscal year 2023 levels or 1 million pieces in 2024 are eligible for a 30% discount.

Rebates Schedule: Credits will be issued in July 2024, October 2024, and January-February 2025.

Registration: Starting in November 2023, mailers can register for the discount through the USPS Business Customer Gateway.

Validity: Postage credits remain valid until December 31, 2025.

2024 USPS Promotions:

  • Tactile Sensory and Interactive – 5%: February – July
    • 2024 is the last year that gloss paper stocks will be eligible
  • INFORMED DELIVERY – 4%: AUGUST – DECEMBER
  • Emerging and Advance Technology – 3%: Any six-month period
    • 2024 is the last year for the mobile shopping promotion.
    • Customers can now pick their own six month window this promotion as well.

We looked to our in-house USPS expert Brandon Jacklin, Director of Postal Logics to share his perspective and advice for mailers: “The post office has been clear about two things- that all available rate authority will be used at each and every postage rate increase, and that postal promotions are here to stay.  So don’t leave money on the table- with a variety of qualifying treatments and options, most any piece can be made to qualify for a 3-5% discount with only minor changes, and the Nahan team is standing by to assist with the entire process from the initial design to the final postage statement cleared.”

In addition to postage incentives, the emergence of the Congressional Printing Caucus as a new voice for the industry on Capitol Hill underscores the evolving political landscape affecting direct marketing. This development points to an increased recognition of the industry’s significance and the need for its representation at the national level.

Shift to Smaller Formats in Retail/Catalog Direct Mail

As highlighted in a recent Retail Brew article, retailers continue to leverage catalogs and direct mail as key channels for brand storytelling and product showcasing, despite the rise of online advertising. Polly Wong, president of Belardi Wong, explains the strategic reasoning: “The No. 1 reason is that most of our clients are sophisticated marketers who understand the risk of over-reliance on just Google and Meta.”

She points out the increasing costs of digital advertising over the past five years. “CPMs and CPCs are up by double digits,” Wong notes. “With the rising costs in digital marketing, it turns out you can send four targeted direct mail pieces for the cost of one digital click.

However, the increase in postal rates and cost of paper has created a shift to smaller, more cost-effective formats. Small format catalogs complemented by self-mailers have given retailers more flexibility to stay nimble and creative with their mailings. We see this as a continuing trend into 2024, and view it as an ongoing opportunity for innovation and efficiency while not losing on performance.

One person that understands this shift almost better than anyone in the industry is Mark Groff, our Vice President Eastern Region Sales. Mark has worked with some of the top retail brands from Fortune 500 stalwarts to rising DTC innovators for the past 30+ years. We asked him for his insights on this shift and here’s what he had to say:

“The 2020 pandemic showed that retailers who continued direct mail campaigns remained successful. Given the rising costs of postage, paper, and labor, it’s crucial to maintain cost-effective strategies. We’re observing a trend towards smaller, 6×9” catalogs and folded self-mailers mailed at lower postal rates, saving significantly per piece. While large catalogs are still used for extensive merchandise ranges and seasonal offerings, smaller formats are increasingly popular for specific segments or promotions. In 2024, marketers will need to carefully consider these options for optimal efficiency.”

Multisourced Data Analytics for Predictive Modeling

Most mailings nowadays involve the use of predictive analytics to select prospects for targeting. Direct mail is an investment, and so every marketer wants to be able to identify those most likely to respond and purchase. The vast majority of predictive models are built upon data provided by a single data provider.

Nahan’s Vice President of Marketing Strategy, Alan Sherman noted, “We are seeing better performance coming from multi-sourced analytic tools – predictive models known as “META” models. These are models that are constructed by bringing together several models, each built upon a different data source, such as a demographic compiled file, credit bureau data (if applicable), alt-credit and niche data.” Typically, these models are built against a pool of data files licensed by a group of data providers. With an exponentially larger pool of some 20+ data providers and 30,000+ data attributes, these models have much more potential predictive data to work with. When more data is available to work with, a better analytic tool is the result.

These models demonstrate greater discrimination and predictive power and are continually updated via ongoing response data. They don’t grow “stale” over time, and don’t need to be rebuilt when the market or marketer’s priorities change. They tend to deliver response lifts of some 20-40% over traditional single data provider models.

The AI Impact on Marketing Augmentation

It’s been a year since the arrival of ChatGPT and ever since there’s been a steady flow of discourse about how it will impact every aspect of business, including direct marketing. Machine learning and AI have already had major impacts on the data and modeling side of the equation, and will continue to improve in 2024.

The recent AI hype focuses more on Generative AI and you can’t really go a day without learning how marketers are incorporating it into their workflows for brainstorming, analysis and research.

It would be foolish for us to predict where all of this is going so like everyone else we are advising to pay close attention to the narrative and new developments. Will there be more hype? Of course, but there will likely be some new innovations and applications that will genuinely help marketers create more efficiencies and productivity gains.

This article in Adage caught our attention as one of the way that brands are starting to experiment with using AI-generated customer profiles for deeper insights into consumer preferences. While it will take some time to refine these approaches, there’s no question that using AI to better understand customer desires and expectations will gain more traction, and likely create an interesting dialogue within the industry.

We’ve also seen some interesting experiments using generative AI for direct response copy, and this will certainly continue. AI chatbots will become more common for certain and marketers will find all sorts of new ways to augment and optimize their workflows.

We are currently using ChatGPT for our weekly internal news summaries and it has helped us identify some trends that we might have overlooked. While a lot of the focus has been on how ChatGPT outputs text, what it really excels at thus far in our estimation is in sorting and synthesizing text to get to the core ideas and principles.

Interest Rate Policy and the Economy

When the Federal Reserve started it’s campaign to battle inflation by rapidly raising interest rates, the consensus in the financial world was that a recession would result at some point in 2023. But that didn’t happen, and inflation has slowed substantially the last year but remains stubbornly above the 2% target rate.

So what comes next? There are already predictions that the Fed will cut interest rates as inflation stabilizes and this could potentially have a major impact for direct marketers, especially those in the financial services, mortgage, and insurance sectors which are highly sensitive to interest rate policy.

But there’s no guarantee the economy is out of the woods just yet and a recession could still be in the cards at some point in 2024. While there’s growing optimism for a soft landing, where inflation comes down without a significant downturn in the economy, there still remains much needed caution. It could another turbulent year where marketers and mailers need to remain nimble and laser focused on what the data and market are signaling.

Our VP of Finance, Bri Bennet had this to share: “The impact of interest rate changes to key sectors like finance and insurance offers unique challenges and opportunities. Our industry’s adeptness at navigating evolving market conditions underlines our potential to drive impactful direct marketing strategies in the coming year.”

The Final Countdown for Third-Party Cookies

Third-party cookies, long a staple in digital advertising, face extinction in 2024 with Google set to deprecate them from the Chrome browser. This change, driven by evolving consumer privacy expectations, leaves the advertising industry at a crossroads. The industry must now pivot towards first-party data and explore innovative customer engagement strategies.

Krista Black, VP of Marketing at Nahan, notes, “As digital marketers adjust to these shifts, we anticipate a reallocation of ad budgets, favoring channels like direct marketing and print. This presents a prime opportunity to harness highly targeted direct mail to reach specific audiences, maintain ROI, and drive growth in the midst of digital uncertainty.”

Sustainability in Print

We’re passionate about print and are dedicated to its sustainable future. Recognizing the importance of sustainability, especially as younger generations demand environmentally conscious practices from their favored brands, we’ve embraced this ethos in our operations.

In 2023, the evolution of digital printing continued to advance sustainability efforts in the printing industry. This technology, continuously improving in efficiency and eco-friendliness, has become a key part of sustainable printing practices.

Nahan’s VP of Production, Paul Overn, shares his perspective: “Aligning with industry trends, our commitment to sustainability involves adopting sustainable materials and practices, positively impacting the environment, and meeting global standards.”

Key aspects of Nahan’s sustainability practices include:

  • Environmental Best Practices: Using recycled paper, optimizing packaging, and implementing energy-efficient workplace solutions.
  • Eco-Friendly Ink and Coatings: Utilizing vegetable and soy-based inks and low VOC coatings, emphasizing renewable resources.
  • Industry Certifications: Proudly holding certifications from the Forest Stewardship Council (FSC®) and Sustainable Forestry Initiative (SFI®).
  • Recycling Initiatives: Strong commitment to recycling various materials, including paper, plastics, and metals.
  • Continuous Environmental Improvement: Ensuring compliance with regulations and constantly seeking more energy-efficient methods.

These practices reflect our dedication to contributing in creating a healthy, sustainable print industry where great catalogs and marketing materials continue to play a vital role in creating awareness for brands.

Conclusion

2024 is shaping up to be another interesting, complex year for the mailers and marketers. We think these seven topics will probably dominate the conversation in one way or another but of course that could always change. We’re excited about what’s ahead but if the last few years have taught us anything it’s that we need to be prepared for the unexpected.

Innovation, Insights, Impact: Welcome to Nahan Magazine

Our creative team at Nahan has been bustling with activity; balancing client projects while also spearheading our internal branding initiatives. Over the past year, we’ve focused our content marketing efforts on diving into some of the complex challenges direct marketers face in today’s competitive marketplace. These collaborative efforts have inspired us to create something more tangible: Nahan Magazine.

“Our mission is simple: to stimulate conversation, foster real connections, and provide actionable insights.” – Mike Ertel, CEO

In our inaugural issue, we delve into a variety of topics that are at the forefront of the direct marketing industry. From trends and strategies to the intricacies of targeting and the transformation brought about by digital printing, we’ve covered it all. Highlights include:

  • A personal welcome and insights from our CEO, Mike Ertel
  • An overview of current “Direct Marketing Trends”
  • Strategies for navigating through a “Stormy Economic Environment”
  • Exploring “Informed Creative” and why “Personalization Matters”
  • The battle between “Behavioral Targeting vs Demographic Targeting”
  • “The Risk in Not Testing Your Direct Mail”
  • Unpacking “Trigger Mailing – When the Dominos Begin to Fall”
  • The transformative impact of “Digital Printing – Changing the Face of Direct Mail”
  • The advantages of working with the “Catalog Printing Pros”
  • An Introduction to Nahan’s White Papers

With the content curation complete, the next challenge was bringing these articles to life through creative design. That’s where our talented design team came into the picture, taking full creative reign on this side project. The result is a vibrant magazine of which we are all proud.

“Direct mail design is typically very methodical and targeted. This magazine was a blank slate, allowing us to flex our creativity using imagery and typography to convey the insights from the content,” shares Mike Dietz, Executive Creative Director. The magazine stands as a testament to our belief in the power of creativity in direct marketing, proving that design is the unsung hero of direct mail.

Laura Karels, Lead Designer on the project adds, “This was a fun opportunity for us to step outside of the box; to be both the client and the designer at once.” The magazine presented a unique challenge, differing from direct mail, which usually aims to get someone to open an envelope and take action. “With this cover, we want people to stop, question it, and be intrigued enough to open the magazine,” Laura explains.

Mike elaborates on the design process,“We worked on each spread independently, thinking about how to visually convey the content through engaging typography and imagery.” This independent approach to each article ensured a unique and dynamic spread, maintaining the reader’s interest throughout the magazine.

“We had the chance to step out of the direct mail mindset and present our content in a visually interesting way,” says Mike. The magazine not only showcases our expertise in the industry but also serves as a valuable resource for pros in the direct marketing space.

Laura shares her enthusiasm for the project: “There’s so much content in the magazine that demonstrates our team’s expertise. It’s a visual testament that we care deeply about helping our clients navigate the complexities of direct marketing.”

As you explore the pages of Nahan Magazine, you’ll find it is more than just a showcase of creative skill. It is a resource rich in insights and inspiration and a companion in your marketing journey.

Thank you for taking the time to explore Nahan Magazine. We are excited to share this journey with you and we hope you find inspiration, insights, and ideas to elevate your marketing efforts.

 

Decoding Direct Mail Plans: A Checklist for Marketers

Here at Nahan, our Strategy and Account Services Teams know just how vital a meticulously crafted direct mail plan is to the success of any campaign. Trust us, it’s not just about sending mail, it’s a delicate balance of art and data science. A well-thought-out plan guides your campaign from start to finish, providing the flexibility for real-time adjustments and mitigating unexpected challenges.

To help you navigate this journey, we’ve developed a comprehensive checklist. Think of it as your roadmap to a successful direct mail campaign, ensuring each dollar spent translates into real, meaningful engagement.

Determining Your Target Audience

The first and perhaps most crucial step in building a successful direct mail campaign is recognizing your target audience. By identifying and sizing your audience initially, you set the stage for a campaign aligned with your specific goals – be it maximizing lead quantity, focusing on high-quality conversions, or even building brand awareness.

In our experience, assumptions can be risky. You may think you know your customer demographics, but reality often tells a different story. It’s worth taking the time to understand who your most loyal and profitable customers are. We believe in letting the data do the “talking.”

Are they the same as your broader audience?

The attributes of your loyal customer base can serve as a blueprint for identifying your acquisition audience.

Leveraging modern predictive modeling techniques provides deep insights into which data attributes within a prospect or customer universe are indicative of response. These insights can inform you which messaging, creative and offers may resonate with your audience. Models rank the target audience, enabling marketers to target just those deemed likely to respond, thus enabling a more efficient budget allocation and minimizing unnecessary expenditures.

Nowadays, with the cost of marketing continuing to rise, predictive analytics are a must for targeting.

Checklist

  • Clarify Campaign Objectives: Before you dive into audience identification, be clear about your campaign’s goals. Are you looking to generate a large number of leads, focus on high-quality conversions, or increase brand awareness? Your objectives will influence the rest of your planning steps.
  • Identify Your Audience: Through comprehensive market research, understand who you’re targeting. Go beyond assumptions and investigate whether your perceived audience matches your actual customer base. It may be useful to build a customer profile by appending demographic data to your customer file to gain customer insights.
  • Recognize Your Most Loyal Customers: Identify your most loyal and profitable customers and see how they align with your broader audience. Use this information to prioritize your audience.
  • Size Your Audience: Based on your clarified objectives, budget, modeling results, and audience insights, evaluate the size and scope of your target audience. Assess the feasibility of reaching them within your budget constraints.
  • Apply Predictive Modeling: Make use of predictive analytics to rank your audience to determine those most likely to engage with your campaign. This focused approach allows for a more effective and efficient budget allocation.

Setting Budget and Audience Size

Whether your budget is modest or extensive, aligning it strategically with your audience size and campaign goals is vital.

Sometimes, achieving your goals might mean considering more economical creative formats. While high-response formats are often tempting, they aren’t always necessary depending on your campaign objectives.

For example, if your primary goal is brand awareness and product trial, a postcard may suffice. However, if conversions are what you’re after, investing in a #10 envelope with a reply card could yield a better ROI. We have also found that certain formats may be best for certain industries.

Running a proforma analysis of projected results is an excellent way to gauge ROI and assess how different mail formats align with your objectives. This can inform whether your budget is optimally allocated for achieving your campaign goals.

Checklist

  • Evaluate Budget: Take stock of your financial resources to determine a feasible budget that aligns with your campaign objectives.
  • Consider Format Options: Depending on your goals, weigh the costs and potential ROI of various mail formats. If brand awareness is the goal, a more economical format may be sufficient. For higher conversions, consider investing in more engaging formats.
  • Run a Proforma Analysis: Conduct a proforma to evaluate the potential ROI for different mailing formats and target audiences. This will help align your budgeting decisions with your campaign goals.
  • Balance Budget with Audience Size: Once you’ve considered all the variables, strategically allocate resources to maximize the reach and impact of your campaign within your budget.
  • Optimize for Response: Use modeling insights to focus resources on those more likely to engage, but always in alignment with your overarching campaign goals.

The Roadmap: Understanding Direct Mail Plans and Pricing Charts

The landscape of direct mail can be both broad and intricate. One of the first steps is understanding what each line in your pricing chart means. Whether you’re looking at formats, postage types, the number of touches, mail types, or cost considerations, these components all feed into your overall direct mail strategy. Understanding these can provide not only cost savings but also contribute to a more targeted and effective campaign.

Sometimes, particularly when budgets are tight, it’s worth considering alternative, more economical formats. While the highest response rates are always appealing, they often come at a higher cost.

Testing needs to be part of every plan wherever possible. This is how we learn and apply that learning to improve results

Collaboration is key. Working with expert agency partners ensures you’re making data-informed decisions, better positioning your brand for success. And hey, we’re always here to help!

Checklist:

  • Consult the Roadmap: Keep your mail plan and pricing chart within arm’s reach. It’s your guiding star.
  • Break Down the Chart: Make sure you understand all elements in your pricing chart; formats, postage type, number of touches, mail types, and associated costs.
  • Evaluate Alternative Formats: Don’t blindly chase higher response rates. Weigh the pros and cons of different mail formats in the context of your campaign goals.
  • Test different creative and formats. Include a certain amount of risk in your planning to allow for testing. This is how you learn and improve performance.
  • Run a Proforma: This financial statement can provide insights into potential ROI and help you make more informed decisions.
  • Seek Expert Guidance: Don’t go it alone. Partnering with a seasoned agency can provide invaluable expertise and strategic direction.

Understanding the Customer Lifecycle and Crafting Tailored Campaigns for Each Stage

The customer lifecycle isn’t a straight path; it’s a complex journey with twists and turns. Knowing how to navigate these intricacies is crucial.

At Nahan, we often emphasize that to create the most impactful direct mail plans, you need to understand and adapt to your customer’s lifecycle.

Direct mail can be highly effective on its own, but its potency increases exponentially when integrated with other channels like digital advertising or social media, all carrying a cohesive message. Omnichannel works particularly well when we target digital campaigns to the very same people we are reaching via direct mail, taking advantage of the original predictive analytics used to target them.

Remember, a good mail plan is as fluid as it is solid.

Sure, planning is key, but agility in execution can be your differentiator. You can’t always predict how your customers will react, which is why your plan should be adjustable. If new insights arise during the campaign, be prepared to pivot for more desirable outcomes.

Don’t overlook post-campaign analysis. Knowing what succeeded, what didn’t, and why is indispensable for refining future mail plans. This is a continuous learning process that sets the stage for your next campaign.

Let’s talk metrics. The last touchpoint might get all the glory, but we know that DM plays a vital role in customer conversion, even if it’s not the final interaction. So dig deeper. Analyze how many people who received a DM piece actually engage and whether they are likely to become more valuable customers in the long run.

Checklist:

  • Acknowledge Lifecycle Complexity: Understand that the customer lifecycle is multi-dimensional, requiring a nuanced approach.
  • Integrate Across Channels: Consider all touchpoints in your customer’s journey. Ensure your DM campaign complements other channels for a unified brand message. Same offer and messaging.
  • Stay Agile: Be prepared to adjust your campaign strategy as you gather more data and insights during its execution.
  • Post-Campaign Analysis: Don’t move on to the next campaign without evaluating what worked and what didn’t in the last one.
  • Re-Examine Metrics: Challenge the “last touch attribution” model. Dig deeper into how DM contributes to customer engagement and long-term value.
  • Partner with Experts: Collaborate with specialized agencies that can bring expertise in direct mail and integrated marketing strategies.

The Power of Persistence: Advantages of Ongoing Multi-Mailing Campaigns

Within our team, we often find ourselves echoing a vital principle:

An ongoing direct mail campaign allows you the freedom to experiment, refine, and most importantly, learn about your audience. Think of it as a long-term relationship rather than a one-off encounter. You wouldn’t propose on the first date, would you? In the same vein, ongoing touchpoints afford you multiple opportunities to build credibility and foster trust.

Don’t forget, data is your best ally here. Frequent interactions with your customers offer more data points, allowing for nuanced insights that can be used for continuous refinement. This is particularly important when considering other channels your customers may encounter. A multi-mailing strategy can seamlessly integrate with your other marketing channels to deliver a cohesive and impactful message. This synergy often leads to a snowball effect, enhancing the impact of each channel and making your marketing spend more efficient.

Remember, the insights you gain from one campaign can (and should) be used to fine-tune your next one. Always be analyzing and adapting. The lifecycle of your customer base isn’t static, and neither should your approach be.

Checklist:

  • Understand the Customer Journey: Map out key touchpoints and opportunities to make a meaningful connection.
  • Tailor the Message: Different stages of the customer lifecycle warrant different messaging. Make each touchpoint relevant.
  • Test and Optimize: Don’t rest on your laurels. Regularly revisit your performance metrics and adapt based on real-world feedback.
  • Integrate with Other Channels: Make your direct mail campaigns part of a larger, unified marketing strategy. Cohesion amplifies impact.
  • Continuous Learning: View each campaign as a learning opportunity for the next. Capitalize on what works and learn from what doesn’t.

Final Thoughts

Direct mail campaigns that are executed thoughtfully and iteratively can offer unparalleled ROI and engagement.

Our team of experts at Nahan is committed to guiding you through this labyrinth, ensuring that your messaging resonates deeply with your targeted audience.

 Contact us today to craft a strategy tailored to your audience, optimizing your ROI for sustainable success.

Celebrating John Klumb’s 50-Year Legacy in the Print World as He Retires

As we say goodbye to John Klumb, our VP of Sales, there’s a mix of feelings. Excitement for John as he steps into a well-deserved retirement, and gratitude for the invaluable contributions he’s made over his 50-year career in the print industry, including a significant 8 years with Nahan. Under John’s guidance, our organization navigated through several pivotal changes, affirming that his expertise has been instrumental to Nahan’s success.

While John gears up for his next chapter, we take a moment to delve into his extensive experiences and reflections on his 50 years in print.

Mike Ertel, our CEO, aptly articulates our sentiment:

“John Klumb’s impact on the industry is undeniable. With a career spanning five decades, he’s been a reservoir of knowledge and wisdom. Collaborating with John has been enlightening. He embodies the spirit of Nahan’s dedicated team. Thank you, John, for your immense contributions to Nahan and the broader industry. Wishing you a fulfilling retirement!”

What are three lessons you’ve learned about the industry over the course of your career?

  • Our Employees are our most important asset. Our competitors have essentially the same equipment and utilize the same processes.  What sets us apart is the knowledge, creativity, and attention to detail of our employees.
  • Our customers are the only people who pay us for what we do and as a result, we hold them in high esteem.
  • How we react when things go wrong and they do, even to the best of us. Differentiates us from our competition.  High quality and outstanding service is why our customers came here.  How we react when things go wrong is why they stay.

What have been the most significant changes you’ve observed?

  • The change in Pre-Press (Pre-Media) from a labor-intensive process of conventional 4/C separations, film assembly non standardized color proofing and photo sensitive plate making.  To Fully electronic, desk top based pre-media that incorporates, design, retouching and production utilizing standardized 4/C proofing and digital plate imaging.  This resulted in reduced cycle times and improved quality.  The very highest quality still dependent on electronic retouching done by skilled craftsman working in a controlled environment.
  • The demise of the printed publication (magazines).  The immediacy of information on the internet along increased price of paper and postage have all but killed printed magazines resulting in a huge reduction of high-volume printing.  There’s only one true high-volume printer left in the US with both web offset and rotogravure.
  • The explosion of ink jet printing.  Fifty years ago, it was recognized as an up-and-coming print process but was very limited in its use.  The most common application being applying the name “Sunkist” to oranges.  Besides the total variable high quality direct mail application that we employ, it rules the roost in large format printing from race car wraps to building sized advertising.  Ink jet is also a major player in the textile, packaging, and label industry with exponential growth.

What excited you most about your day-to-day activities?

  • Being part of a successful team.  Nothing feels better than when a plan comes together.  Be it a big sale, completion of an amazing project, adding a new process or achieving a company goal.
  • Working with our team and helping employees develop.
  • Helping solve problems.

Do you have any exciting retirement plans?

  • Reintroducing myself to my wife and family.  I maintained my permanent residence in rural Southern Minnesota while I lived in an apartment in St Cloud for the last 8 years returning home on the weekends.  Both of our sons are married, and we have 5 grandchildren from 2 to 16, so I have some catching up to do.
  • Become more involved in my community and Church.

What advice would you give younger employees working in the industry?

  • Embrace and celebrate change.  The only constant in the printing industry is change.  Nahan has been and will continue to be successful because its owners and leaders embraced changes as opportunities rather than bemoaning change and hoping the past would return.
  • Learn as much as you can whenever you can.  The more you know the more valuable you are to yourself and to your employer.
  • Enjoy the changes and variability that the print industry offers.  Every job you produce is unique and has its own challenges and rewards.  If you embrace that change and are not afraid to take the next step in the business, you will find long term fulfillment in your career.

As we bid farewell to John Klumb, we’re not just saying goodbye to an industry stalwart but also a mentor, leader, and above all, a cherished member of the Nahan team. John’s five-decade-long journey is a testament to resilience, adaptability, and an unwavering passion for the craft. As he steps into a well-deserved retirement, we wish him endless joy, memorable moments with his loved ones, and countless new adventures. John, here’s to new chapters and horizons. Cheers!

Leveraging Advanced Meta Modeling for Optimizing Direct Mail Campaigns

With the costs of direct mail postage going up, it is essential that targeting must be as precise as possible. This accuracy is essential for industries like insurance, financial services, and telecom, where direct mail is an important marketing channel.

Predictive modeling has long been indispensable for these and other industries leveraging direct mail, but the question is, can we get any better with predictive analytics? We can – anywhere from 20-40% improvement in response over traditional predictive modeling.

Meta Modeling is Superior to Traditional Predictive Modeling

“Meta modeling is a game-changer in predictive analytics,” says Alan Sherman, VP of Strategy at Nahan. “We’ve moved beyond relying solely on single data provider sourced models. The era of meta-modeling is upon us, and it’s transforming how we identify our best customers.”

In our Meta models, we have access to over 20 data provider files to consider over 25,000 data attributes across credit, alt-credit, demographic, and specialty data files. Credit bureau data use is usually restricted to the financial and insurance industries, but in certain cases can be applied elsewhere where credit is being extended. But even without credit data, our Meta models are superior to models built by one data provider or analytic firms with access to one data provider’s compiled file.

Quantity, Quality, and Approach

The breadth of multi-sourced data means that there are exponentially more predictive data points that can be identified and taken advantage of. With access to multiple data sources there are also more net leads.

Multi-sourced data also means higher quality. A typical compiled file may contain up to 15-20% outdated or inaccurate data. Here, all data is linked across sources; we run independent and linked data hygiene to validate “good” data and suppress “bad” data, providing higher deliverability and thus better results.

With this method, sub-models are developed independently on the selected data sources. These sub-models roll-up to an overarching Meta model, which produces the final predictions. This approach delivers inherent advantages over typical single-source models – superior discrimination, greater predictive accuracy, more flexibility, and a faster updating process based on the feeding of most recent campaign results. Unlike most models, these never grow stale, as they are continuously updated at no additional cost. In addition, several Meta models can be built that focus on different goals, such as response, conversion, lifetime value, and then are combined for precise targeting that incorporates all three.

Backed by thousands of performance evaluations, tests, and simulations, meta-modeling provides marketers with accurate and predictable outcomes.

In addition, this approach is applied by a team of award-winning and machine-learning analytic professionals backed by a powerful infrastructure that easily processes millions of records.

The Analysis

Meta modeling begins with an analysis of client customer and promotional files. It results in the building of a Meta model with documentation, projected results and universe sizing. Strategy and target universe recommendations are made. All at no cost, with the expectation of a test to prove performance.

Conclusion

In conclusion, meta-modeling offers a powerful tool for optimizing direct mail campaigns. Its ability to integrate multiple predictive models and harness multi-sourced data provides unprecedented precision in identifying the best prospects.

“In this rapidly evolving industry,” says Sherman, “embracing advancements like meta-modeling is not just about staying competitive. It’s about shaping the future of marketing.” Businesses that adopt these sophisticated approaches can expect improved marketing outcomes and superior results.

In this white paper, we provide an insiders guide to effective direct mail testing for programs of all sizes and across industries. It doesn’t matter if you’re just getting started with testing or a seasoned pro, our guide will provide you with actionable insights you can implement today.

Learn how the four phases of the testing process work together to drive optimization.

  • Research
  • Pre-Testing
  • Testing
  • Post-Campaign Assessment

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today! 

8 Types of Direct Mail Data Every Marketer Needs to Know

Direct mail campaigns are only as effective as the data that informs them. With the right data, businesses can target the right audience and achieve a higher ROI.

However, understanding the different types of direct mail data available can be overwhelming. In this post, we’ll break down 8 key types of direct mail data to help you unlock the power of your campaigns.

Saturation Data

Modeled Credit-level Data

Modeled Compiled Demographic Data

Media/Publication data/vertical lists

Co-op Retail and Catalog Data

Compiled Business Data

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today! 

Unlocking the Potential of Personalization with 4 Color Variable Printing

By now, personalization in direct mail is nothing new to seasoned marketers. Still, there’s a facet to it that continues to evolve and improve, often catching many by surprise: data-driven variable printing. The technology shines brightest when it comes to envelope personalization, the first point of interaction between your mailer and the recipient.

The Rise of 4C Variable Printing

4C variable production is a tool that direct marketers can leverage to create outer envelopes teeming with personalized information. Thanks to technological advancements, it now provides the option to feature elements like business vertical images, local graphics, representative photos, and relevant data attributes. The result? A connection with the customer that feels more personal than ever.

 

Advancements in Digital Printing

Historically, the adoption of this technology may have been hindered due to concerns about quality. However, as digital printing continues to astound us with its progress, those concerns are becoming obsolete. “Today, digital printing reliably churns out vibrant, crisp images that meet the high standards marketers have come to expect from professional print services,” Mike Dietz, Executive Creative Director at Nahan.

The Power of Personalization

“Personalization has been, and continues to be, a significant driver in today’s marketing strategies,” Dietz continues. “Innovations in digital printing have made personalized packages a reality, paving the way for new engagement opportunities in direct mail campaigns.”

Variable production leverages data to create a unique experience for each recipient. The customization extends beyond the name and address; it’s about aligning the content with the recipient’s interests and preferences.

Everything from letters to inserts and envelopes, even catalog covers can now include tailored features like business vertical images, local maps and images, representative photos, and other data attributes – each one adding a layer of personal connection with the customer.

The Evolution of Direct Mail

Digital printing and data analytics aren’t new to the industry, but their potential for transforming direct mail continues to grow. They have become an integral part of the evolution of direct mail, with 4C variable production at the forefront, offering improved personalization and quality. The resulting engagement opportunities are beneficial to marketers and customers alike.

In conclusion, personalizing your direct mail campaign with relevant content isn’t just a trend – it’s an evolving strategy that delivers tangible results. So, if you haven’t recently revisited the capabilities of digital printing, there’s no better time than now. With variable printing, and the high quality of digital printing, there are endless opportunities for the type of personalization that can give your campaign an edge.

Curious to learn more? Drop us a line and we’ll answer any questions!

Nahan Wins Best in Category at PRINTING United Alliance Premier PRINT Awards

SAINT CLOUD, Minn. – September 20, 2022 – Nahan, a full-service, direct marketing and print solutions provider, announced today it has won the Digital Printing/ Direct Marketing Best in Category Award at the PRINTING United Alliance Premier PRINT Awards for the South Dakota Department of Tourism “Your Guide to Great Finds” campaign.   

 The mini-catalog campaign was created in collaboration with client Lawrence & Schiller to promote South Dakota’s unique travel destinations.  

 “We’re honored that our collaboration with the South Dakota Department of Tourism and Lawrence & Schiller has been recognized by Printing United Alliance this year. It demonstrates the agility of the Nahan print platform and our ability to produce highly unique, and personalized print pieces,” said John Klumb, VP, Sales.  

 The recognition caps off a summer of achievements for the Nahan team. At the June Printing Industry Midwest (PIMW) Star Awards, Nahan received multiple awards for its work, including:  

  • Award of Recognition, C-4 Product Catalogs: C.C. Filson Company Mailer 
  • Award of Recognition, C-4 Product Catalogs: Boundless Summer and Fall 2021 
  • Award of Recognition, C-4 Product Catalogs: Patagonia 2021  
  • Catalog Certificate of Merit, W-4 Direct Mail Campaigns, Consumer: South Dakota Tourism Great Getaways 

 Team members from across the organization were also honored for their service and expertise, including: Senior Marketing Strategist Camille Lehmann, who was awarded Marketing Professional of the Year, and Senior Account Manager Amanda Thompson took home the award for Customer Service Professional of the Year.  

 Teammates Brandon Jacklin, Manager of Postal Logistics, Laura Karels, Lead Designer and Jennifer Chirhart, Fulfillment Production Supervisor were also honored as nominees during the gala.  

 “We are extremely proud that so many of our team members were nominated and recognized for their outstanding contributions this year,” said Krista Black, VP, Marketing and Account Services. “Our team works hard to provide the highest levels of service and quality to all of our clients and being recognized by our industry for their achievements this year is an honor.” 

 About Nahan 

 Nahan is a full-service direct marketing and print solutions provider. Our portfolio of services includes strategy, creative, data, analytics, print production, mailing, logistics and fulfillment services. 

 Founded in 1962 by Jim and Helen Nahan, the company established a strong reputation for providing high-quality direct mail and commercial print and exemplary customer service. What was then a 15-person, family-owned print shop is now home to over 400 employees, including industry-leading experts in direct marketing strategy, data, analytics, creative, and more. 

 For more information about Nahan and our services, please visit http://www.Nahan.com. 

Nahan Announces Rebrand as Part of Business Evolution

SAINT CLOUD, Minn. – April 19, 2022 – Today, Nahan announced it has rebranded. The effort includes a new logo, refreshed visual identity, and an updated website.

The rebrand reflects Nahan’s growing suite of services that include marketing strategy, creative, data, and analytics — coupled with world-class print production and postal strategies  — providing a fully integrated solution for its clients. The news follows on the heels of Nahan’s earlier announcement that it had expanded its direct mail capacity and geographic footprint through the acquisition of a Pennsylvania-based facility.

“Our business has evolved dramatically in recent years, including an expansion of the services we offer, enhancements to our printing platform, and considerable additions to our leadership and management teams,” said CEO Mike Ertel. “We’re excited to unveil updated branding that more accurately reflects the company we’ve become, which is a one-stop-shop for our clients’ direct marketing needs.”

Founded in 1962 by Jim and Helen Nahan, the company established a strong reputation for providing high-quality direct mail and commercial print, and exemplary customer service. Sixty years later, what was then a small family-owned print shop, is now home to more than 400 employees, including industry-leading experts in direct marketing strategy, data, analytics, creative, and more, with facilities in the Midwest and East Coast.

“The team at Nahan is driven by our immense pride in our company’s history, combined with the ambition to push ourselves in new directions and deliver greater results to our clients,” said Mike Logar, SVP, Sales and Marketing Services. “Great marketing is more than just delivering the right message at the right time — it’s also about making real connections with people. And Nahan is purpose-built to create those connections.”

For more information about Nahan and to view the new Nahan branding, please visit http://www.Nahan.com.

Nahan Announces East Coast Expansion of Direct Mail Platform

Acquisition of Intellus Marketing Mail Division Assets Will Allow for Faster Speed to Market for Customers’ Direct Mail Campaigns

SAINT CLOUD, Minn. – April 12, 2022 – Nahan, a full-service, direct marketing and print solutions provider, announced today it has acquired the mail division assets of Intellus Marketing. The purchase allows Nahan to strategically expand its geographic footprint and complement its existing Minnesota facility with enhanced printing, mailing, distribution, and logistics capabilities that enable faster speed to market.

“Direct mail is the fastest-growing segment of our business,” said CEO Mike Ertel. “The addition of an East Coast facility strengthens our already best-in-class platform with improved cycle time, which is integral to our end-to-end direct marketing solution.”

The dual facilities will also increase Nahan’s overall print and mailing capacity to support the growing needs of its expanding customer base. The former Intellus facility, located in Montgomeryville, Pa., is equipped with a high-speed direct mail production platform which enables high volume execution of direct mail campaigns.

With the direct mail industry facing headwinds due to supply chain issues and paper shortages, companies like Nahan have partnered with marketers to find creative solutions, such as redirecting marketing dollars toward trigger-based communications that are highly targeted, personalized, and timely.

“With the increased focus on triggered direct mail campaigns, marketers are seeking integrated solutions to increase agility, efficiency, and effectiveness,” said Mike Logar, Vice President of Sales and Marketing Services. “This acquisition puts us in a strong position to produce direct mail campaigns that will deliver high-performance results for our customers and drive business growth in a highly competitive market.”

About Nahan

Nahan is a full-service direct marketing and print solutions provider. Our portfolio of services includes strategy, creative, data, analytics, print production, mailing, logistics and fulfillment services.

Founded in 1962 by Jim and Helen Nahan, the company established a strong reputation for providing high-quality direct mail and commercial print and exemplary customer service. What was then a 15-person, family-owned print shop is now home to over 400 employees, including industry-leading experts in direct marketing strategy, data, analytics, creative, and more.

For more information about Nahan and our services, please visit http://www.Nahan.com.