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Canada on Growth Path
Excellent conditions for direct marketing
December 2006By Klaus M. Knappik and Dr. Diane Rinas (published in the trade journal DIREKT MARKETING, December 2006 issue)
Canada has enjoyed uninterrupted economic growth for the past twelve years. That puts the world's second largest country in the top spot among the G8 countries. The Canadian economy is benefiting, in particular, from the US economy, with which it is closely linked. In addition, high raw material prices, fat corporate profits and high capacity utilization are boosting business investment.
Consumer behavior is also creating an optimistic mood, with the lowest unemployment rate in more than 30 years and the lowering of value-added tax from seven to six percent ensuring that Canadians continue to show a propensity to buy. For companies, those are ideal conditions for positioning themselves in the Canadian market. An additional benefit is that consumers in Canada respond exceptionally often to mailings.
On the list of popular media, mailings rank second just behind print advertising. 30 to 50- year-olds are particularly interested in them, at 19 percent. Of the 79 percent of consumers who receive advertising mailings at least once a week, 90 percent can be described as having an affinity to mailings because they read their advertising mailings at least occasionally. 40 percent read their mailings regularly and a very large proportion, 78 percent, even respond to them at least once a year.
On the list of popular media, mailings rank second just behind print advertising. 30 to 50- year-olds are particularly interested in them, at 19 percent. Of the 79 percent of consumers who receive advertising mailings at least once a week, 90 percent can be described as having an affinity to mailings because they read their advertising mailings at least occasionally. 40 percent read their mailings regularly and a very large proportion, 78 percent, even respond to them at least once a year.
The category of people who have an affinity to mailings includes, in particular, people who have not completed their schooling (100 percent), low earners (93 percent), three-person households (93 percent) and so-called "best agers", that is to say, consumers over the age of 50 (93 percent). In the regular readers category, consumers aged between The fact that Canadian consumers have an above-average interest in mailings is reflected in the surveys conducted by Direct Marketing Monitor International 2006, published by Deutsche Post Global Mail. 30 and 50 (47 percent) and people who have completed less than ten years of schooling (54 percent) are well represented at an above-average rate. Young consumers (under the age of 30), on the other hand, are less well-represented in this category. The 78 percent of advertising mailing recipients who respond to their mailings at least once a year include, in particular, 30 to 50-year-olds and households of at least three persons. However, 69 percent of young consumers also respond to their advertising mailings regularly. The preferred response medium for 37 percent of those who are willing to respond is e-mail, followed by the reply card and the telephone in second and third place, respectively.
It is the content that is important
If the content of a mailing is right, even unknown companies can expect a good response. The reason is that 56 percent of all respondents and 60 percent of those who are willing to respond consider an advertising mailing's content, in particular, to be important. 44 percent of Canadian consumers like it if they can first test the product being promoted via a sample.
Particularly female consumers who have an affinity to mailings find samples (57 percent) and coupons or vouchers (47 percent) appealing. With men, the level of interest is slightly lower but still fairly high at 30 percent. Well-known companies can also benefit from a credit of trust in that 38 percent of women pay more attention to a major name.
The surveys conducted by Direct Marketing Monitor International 2006, published by Deutsche Post Global Mail, show that Canadian consumers are extremely loyal to their brands. For 74 percent of all respondents and 78 percent of advertising mailing recipients who are willing to respond, the brand plays a greater role than quality or price. Canadians also like purchasing their products from mail-order companies from time to time. Slightly more than half of the consumers surveyed state that they have ordered products from mail-order companies during the past year. This puts them far above the American-Pacific average (46 percent). Particularly people on higher incomes and consumers aged between 30 and 50 take advantage of mail-order offers. The general conditions in Canada offer companies the best possible opportunities to attract the attention of consumers with a mailing. The reason is that a large percentage of Canadians not only read their mailings but also actively respond to them. And the goal of direct marketing campaigns is, after all, to enter into a dialog with consumers.
However, here too, the following rule of thumb applies: only by being familiar with your target group's consumption interests and the special, country-typical characteristics can you target consumers in a precise way, thereby increasing the probability of achieving high response rate. In order to solve this task successfully, an increasing number of companies are relying on the assistance of international direct marketing experts, who, like DHL Global Mail, combine global reach with local know-how. As the world's second largest provider of direct marketing services, DHL Global Mail helps customers gain a major competitive advantage when they enter the Canadian market by virtue of its precise knowledge of market conditions and of the direct marketing climate.
Klaus Knappik, Chairman of the MAIL International Divisional Board, Deutsche Post World Net
Dr. Diane Rinas, Senior Marketing Manager, Deutsche Post World Net
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Consumers' interests are many and varied
Vacations are a major theme in Canada. A third of all respondents and people who are willing to respond are interested in travel, vacations and tourism. Based on their purchasing interests, Canadian consumers are also very health-conscious. 44 percent of those who are willing to respond would like to be informed about health and wellness themes. DIY and gardening appear to be particularly in vogue with female consumers, with 59 percent of women showing an interest in these themes. The figure for men is 41 percent. Hi-fi and electronics products, on the other hand, are a winner with 76 percent of male consumers. This preference is particularly pronounced among 30 to 50-year-olds.The surveys conducted by Direct Marketing Monitor International 2006, published by Deutsche Post Global Mail, show that Canadian consumers are extremely loyal to their brands. For 74 percent of all respondents and 78 percent of advertising mailing recipients who are willing to respond, the brand plays a greater role than quality or price. Canadians also like purchasing their products from mail-order companies from time to time. Slightly more than half of the consumers surveyed state that they have ordered products from mail-order companies during the past year. This puts them far above the American-Pacific average (46 percent). Particularly people on higher incomes and consumers aged between 30 and 50 take advantage of mail-order offers. The general conditions in Canada offer companies the best possible opportunities to attract the attention of consumers with a mailing. The reason is that a large percentage of Canadians not only read their mailings but also actively respond to them. And the goal of direct marketing campaigns is, after all, to enter into a dialog with consumers.
However, here too, the following rule of thumb applies: only by being familiar with your target group's consumption interests and the special, country-typical characteristics can you target consumers in a precise way, thereby increasing the probability of achieving high response rate. In order to solve this task successfully, an increasing number of companies are relying on the assistance of international direct marketing experts, who, like DHL Global Mail, combine global reach with local know-how. As the world's second largest provider of direct marketing services, DHL Global Mail helps customers gain a major competitive advantage when they enter the Canadian market by virtue of its precise knowledge of market conditions and of the direct marketing climate.
Klaus Knappik, Chairman of the MAIL International Divisional Board, Deutsche Post World Net
Dr. Diane Rinas, Senior Marketing Manager, Deutsche Post World Net
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