An introduction to continuity marketing Around 1000 BC an Egyptian landowner put pen to papyrus and produced an advertisement for the return of 2 runaway slaves.  Direct mail was born and this ancient ‘copy’ can still be viewed at the British Museum today.

Mail is clearly the most established channel for direct marketing – 3000 years is a fair run for any channel – and it continues to evolve and provide even the savviest marketer with fresh challenges.

Whilst the traditional direct mailer faces the traditional tests of sourcing lists, identifying prospects, retaining customers, re-activating lapsed customers and so on, the growing continuity mail market presents fresh challenges.  There are two approaches to continuity mailing – seeking those that will commit to regular purchases and those that will make payment in instalments – and both require a different approach.

On the most obvious level, copywriting is significantly altered.  The copy promoting a continuity offer is more detailed, engaging and delicately articulates the ongoing process the consumer is committing to.  Often subtly emotive, continuity copy sells the sizzle, not the sausage, and is not limited by a low word count that projects the basic functionality and features.  It is also likely to incorporate a massive up front discount or giveaway, a common hook for the continuity marketer.

There is also a split between re-active and pro active approaches to continuity mailing.  Whilst there is little seasonality, book and wine clubs remain pro-active with considerable forward planning required.  However, continuity products are often based on specific events, such as anniversaries, world and sporting events.  Therefore, those forming part of this community need to be able to reach the market with efficiency given the limited shelf life of the product line.

This lifespan dictates that the test to roll-out strategy of these mailing campaigns needs to be incredibly fast-paced.  A vast majority of direct mailers go season by season and have more time to plan and hone their strategy.  Initial testing determines viability, so the marketer has to be sure the campaign will be profitable.

"To ensure and maintain profitability, continuity marketers also need to strike a delicate balance between up front response and back end conversion "

To ensure and maintain profitability, continuity marketers also need to strike a delicate balance between up front response (initial clamouring for your offer) and back end conversion (purchasing enough times to make your proposition profitable).  This dynamic differs greatly from traditional mail order where the emphasis is on up front response.  A comprehensive understanding of how many products need to be sold in order to recover mailing and upfront incentive costs and realise a profit, allows for accurate ROI forecasting.  This is often complemented by a solo offer, for example, a coin company may promote a series of coins in a continuity campaign but also offer a one off commemorative item for those consumers unlikely to commit to a continuous purchase.

Furthermore, the high monetary value associated with many continuity products means that understanding who the key buyers are and what makes them different to the one-time purchaser or payment defaulter is crucial for effective marketing, as well as to assist in identifying the right prospects. By analysing their transactional history you can understand a consumer’s commitment to a continuity purchase.

"If a customer is half way through a continuity commitment, you may be at risk of cannibalising your business"

For example, if you are a wine company looking for a prospect that will buy a case of wine each of month, the fact that somebody has bought more than 6 times from a book club would demonstrate their commitment to the continuity process.  This insight, delivered by transactional data, adds another dimension to this complex strategy – retention.

If a customer is half way through a continuity commitment, you may be at risk of cannibalising your business if you present them another offer which could distract from the original agreement.  Whilst default payers are a perpetual issue in this field, there is an increasing amount of screening software and systems entering the market which can lower the risk factor.

Of course, there are many similarities between traditional direct and continuity mail – the fundamental importance of data, the need for engaging copy, creative use of promotions - but under scrutiny the latter discipline becomes increasingly nuanced leaving conventional strategies redundant.

Debbie Conetta

Account Manager

Abacus – The Transactional Data Specialist