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July 27, 2022 18 mins

Episode 19- We speak with Dennis Kelly CEO of Postalytics. Dennis shares his story of pivoting from a niche related technology provider to offer a full service  SaaS Digital Mail Automation Platform in the Cloud.

Dennis covers several trends in the market that are moving organizations back to personalized direct mail due to a proliferation in digital email marketing initiatives that are falling short on deliverability and becoming less effective without a complimentary channel like direct mail.

Learn how to utilize key CRM and Marketing Platforms such as Salesforce, HubSpot and others to incorporate effective mailing campaigns directly into the sales and marketing process. Sophisticated mailing campaigns can now be delivered with a click of a button from the CRM via the Postalytics Platform.


About Postalytics:
 
A team of marketers and technologists who know how effective targeted, personalized, and tracked direct mail marketing can be. We also know that traditional direct mail production processes are slow, expensive, and disconnected from digital channels.

We are also the creators of Boingnet, the award-winning pURL marketing automation platform. Since 2008, we have been helping direct mailers generate personalized, multi-channel campaigns across mail, web, and email channels. Our patent-pending personalized URL tracking has been deployed on millions of mail pieces and has helped marketers understand direct mail response more deeply.


Learn More:
https://www.postalytics.com/

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Play the King (00:00):
This podcast is sponsored by OMI the company
that makes CRM work.
My guest today is Dennis Kelly,the CEO of Postalytics.
Dennis, I'd like to start,because I know you have a
background in software, and techbackground, but Postalytics does
direct mail.
I'm really interested in how aguy like you comes to run what I

(00:24):
think most people think of as anold fashioned business in a
relatively old fashionedindustry.
Which of course you're gonnatell us how it's back again.
Why don't you start there?

Dennis Kelly (00:34):
Absolutely.
Well, thanks.
I'm excited to speak with youhere today.
So Postalytics, as you said, isfocused on the direct mail
industry and, and what we'redoing is we're really bringing a
technology layer to a verylarge, I guess we call legacy
industry that hasn't really hada lot of technology investment.

(00:55):
And so, what we saw kind of atthe beginning of Postalytics is
an industry that is, uh, able tobe very effective for its
customers.
And so, in other words, peoplethat send direct mail are able
to get great results, but itjust hadn't been improved upon.

(01:19):
There hadn't really been anysoftware invested in the space
for a very long time.
And, and so we saw a little bitof a hidden gem, I guess.
We pivoted out of an oldersoftware company that we had
built, we've been able to grow,really exponentially over the

(01:40):
last five years since we've donethat.

Play the King (01:43):
Briefly, did the previous concept have anything
to do with what you do now?
I'm always interested to hearhow, you know, one thing becomes
another.
Yes.
Yeah, definitely.
So, uh, back in 2013, I wasapproached by a really, really
smart software architect who Iworked with a couple times in
the past, and he had a littleside project he was working on,

(02:07):
that was helping to measure theresponse to a direct mail
marketing campaign by kind ofmeasuring the people that go
online to respond to a, apostcard or a letter.
And he built it really forhimself, like every great
engineer, no product out thereis good enough.

(02:29):
They could always build a betterone.
So, so he had kind of built thissoftware that, he was using for
both this, own marketing ofbusiness that he had as well as
he started to sell it.
And, we were taking a look atwhat was happening in marketing
technology at the time.

Dennis Kelly (02:48):
The amount of capital flowing in the growth of
the marketing automation sectorwas exploding.
And we thought, you know, directmail is still about a 40 billion
a year industry in the UnitedStates.
And there's not really a lot ofsoftware and automation being
applied to this.
So, so we took that initialproduct that my partner had

(03:11):
started, uh, uh, built acompany.
We called Boingnet and broughtit to market.
And we were selling to, theincumbent, direct mail industry.
We were selling to agencies andto big brands with direct
marketing departments.
We were selling to printers thatwere offering marketing services

(03:33):
on top of their printing andmailing services.
And, you know, after a couple ofyears, it just felt like we were
banging our head against thewall that, we had felt a great
product.
But that the adoption was a lotslower than what we would've
liked.
The amount of services required.
To get client up and running,were significant.

(03:55):
And, you know, we're scratchingour heads and said, you know,
this is just not what weenvisioned here.
And then around that time, wehad some customers come to us
and say, you know, Hey guys, youknow, you're kind of living in
this space between, the CRM andmarketing automation worlds and
the direct mail world.
Is there any way you can help usmake this a lot easier and

(04:21):
faster integrated with theinvestments we've made in
Salesforce or HubSpot, or thebig marketing automation tools
that businesses were investingin.
And, and so we'd heard that acouple of times, while we're in
this process have reevaluatedwhat we're doing with Boingnet.
We thought, you know what, wecan take a lot of what we've

(04:41):
built with Boingnet and goreposition it, come out and try
to solve a different problem.
And there are a whole heck of alot more companies out there
that are investing heavily intheir marketing tech stack with
tools from Salesforce andHubSpot and others, than there
are older school direct mailservice providers.

(05:06):
We thought maybe we can takethose people on with a new
product.
And, and so that's really whatkind of shifted us over to
Postalytics.
So what we ended up building isa software tool for a marketer
to be able to log into a cloudbased tool, drag and drop, pull
a campaign together in just afew minutes, and then press send

(05:28):
just like you would with anemail campaign.
So anyone who's done emailmarketing can now do direct mail
marketing by sending in front ofa computer in a Starbucks,
anywhere in the world and builda campaign that can be printed
and mailed throughout the UnitedStates and now Canada and not
have to leave their seat, get itdone in 20 minutes.

(05:51):
So Postalytics is really aboutsimplifying that process,
integrating it with a marketingtech stack and providing
analytics about what happensafter you send direct mail.

Play the King (06:01):
I'm curious about the interplay between, the
effectiveness of strategyrelated to direct mail.
Maybe it's been a bit neglectedby companies in recent years and
like the familiarity and comfortlevel of people who are actually
using your product these days.
Because I imagine many of themare used to sort of performance
marketing, you know, looking atdashboards, doing it all

(06:23):
digitally.
Do you find that, that those areboth items that you guys needed
to solve for or selling pointsthat you have?
Or how do you think about thosetwo things?

Dennis Kelly (06:32):
Yeah, very much.
So there, there were a couple ofmacro level trends that are, are
driving marketers to come backand take a look at direct mail
marketing.
So we'll start there.
So there are a few things, emailhas exploded as everybody knows,
the email inbox is justoverflowing with more messages

(06:55):
than we could possibly dealwith.
And, and as a result, open ratesand click rates on email
marketing have been on a steadydecline over the last decade.
So marketers are struggling toperform right with email,
digital marketing as everybodyknows, is absolutely explosive.
What marketers are doing now iscompeting with each other over

(07:23):
the same keywords over the sameaudiences.
And so the cost of digitalmarketing has absolutely
exploded.
And, and while direct mail is nolonger a primary channel for a
lot of brands, it is still awell established and well
understood marketing channel.

(07:44):
It's just been very difficult tomanage from a production
standpoint.
And, as you said, there's beenno ability for digital marketers
to really understand what theheck has happened after they
accept the mail.
There's no there's been nointerface like that.
So those are the problems thatwe have attacked with
Postalytics.
So now we have a, a quick andeasy way for marketers to just

(08:10):
deal with the production ofdirect mail in a way that, as I
mentioned before, it kind oflooks and acts like email, you
know, you send an emailcampaign, you're not out there
negotiating with the emailserver on the other side of the
country, right.
You just press sent and it goes,and it's done.
So we thought, well, why didmarketers need be dealing with

(08:33):
print partners to get this stuffdistributed?
Why do they have to figure outpostage and all this complexity
just kind of take care of that,simplify it.
And then we take the basis ofthat first product that we built
Boingnet that was designed tohelp measure the response to
direct mail.
And we've built up someintellectual property around

(08:54):
that.
We've got a couple patents andwe have built some other
analytics tools.
So now every direct mail carrierPostalytics have its own
dashboard.
And you can see exactly whereare the mail is sent and when it
was delivered.
If it had a bad address, if itkind of bounce back in the
return to sender way, and thenwho's responded to that mail

(09:15):
using our proprietary patented,QR codes and personalized URLs
to measure the specific responseto a campaign.

Play the King (09:25):
Yeah.
So you started to get into thata little bit.
I'm curious about themeasurement aspect of this, it's
not only important, right.
For judging the success of acampaign, but for the people who
are using it for justifyingtheir own, their own
roles and jobs and,work thatthey're doing.
Take us a little bit more intodetail there, that seems like
the crux of the improvementsthat you guys have figured out.

(09:49):
I mean, there are obviously theother stuff that you mentioned,
the one click to print and send.
But talk to me about themeasurement stuff.
Just dig into that a little bitmore.

Dennis Kelly (09:58):
Sure, there are a couple of components there first
from a delivery standpoint.
Marketers are accustomed inemail marketing to having a
dashboard that says, well,here's all the people you sent
to.
Here's all the people that havetheir emails delivered here are
the people whose emails bounceback or have soft bounce or hard

(10:20):
bounce, unsubscribed all thesekind of metrics around
deliverability.
So how do you replicate that ata physical channel?
What we discovered is thatthere's a little known tool that
the US Postal Service providescalled the intelligent mail
barcode.
And it's a little barcode thatgoes on commercial printed mail

(10:41):
that the post office actuallyuses for their own internal
tracking of where all theseletters and postcards and
mailers are, are being shippedaround the country.
They've made that publiclyavailable to people that can
figure out how to use it.
.
So what we've done is we takethat barcode, and we attach it

(11:04):
to a contact that is beingmailed through Postalytics in a
particular campaign.
So if, if you're getting apostcard from me, that's saying,
Hey, do you know, sign up for afree Postalytics account?
There's a little barcodeattached to it.
And, we know the exact status ofGeorge's specific postcard and

(11:25):
this campaign by the scan eventscoming in from the postal
service, every six hours or so.
So, we understand exactly wherethe mail is in the delivery
cycle.
And then we've created thistechnology around QR codes,

(11:45):
primarily that allows us tomeasure specifically who has
responded.
So when, when you create a, a QRcode in Postalytics, that goes
on the mailer, it is a unique QRcode.
So every single QR code isdifferent.
And so George, if you were toscan that postcard and hit the

(12:07):
response in and on your phoneand fill out the form or buy the
eCommerce product or do whateverthe call to action is, we know,
Hey, this is George from thisspecific postcard, from this
specific campaign.
And we're able to illuminatethat all in great dashboards and

(12:29):
they'd even synchronize it backinto the CRM so that, you know,
an email can be sent, they can,or sales rep can pick up the
phone or whatever the case,whatever the marketers wanted to
do.

Play the King (12:39):
Yeah.
Okay.
That's really interesting.
I want to just sort of dig in onthat specific point as well,
talk about the limitations,like, what are you butting up
against here that makes thislike, great, but Hey, this is
the next thing we gotta figureout.
I am specifically thinking aboutthe sort of the demographics of
people who might respond todirect mail, like, I assume
they're slightly older, they'rehomeowners more or less, right.

(13:02):
They're moving less often.
You have their addresses.
Maybe, that's a mistakenassumption! How do you connect
them to their digital identitiesso that you can retarget if you
can via QR codes, I'm thinkingabout my own grandparents here,
I'm not sure they know what todo with this.
So I assume there's like sort ofan age range that you're
targeting here.
I'm just sort of giving you abunch of maybe these are

(13:24):
objections, maybe they're justthoughts of, Hey, how do you
solve these problems?

Dennis Kelly (13:29):
Yeah, those are great questions.
Yeah.
So starting with kind of theaudience, how that's developed
with Postalytics, typically inthe older style of direct mail
marketing campaigns, markers gobuy lists from these list
brokers and have name addresses,and you could slice and dice the

(13:49):
data, target people based onincome and a whole lot of other
things.
So you can do that withPostalyitcs but what we provide
that is really unique is theability to tap into your CRM and
to use that as the basis of yourdirect mail campaign and the CRM
ends up being often the focalpoint of all of the marketing

(14:11):
programs that the marketing teamwas pursuing.
So the digital marketing emailmarketing is already driven out
of that CRM.
And so by tapping into that samedata source and then
synchronizing the campaignresults back, we understand,
Hey, George, in our contactrecord failed to open the

(14:38):
following last three emails thatwere sent to him.
So, well, if he's not open hisemail, let's try into the
channel.
So what we're gonna trigger apiece of mail to go out based on
the fact that he hasn't openedlast few emails.
And, and then if George would,when that mail is delivered, the

(14:58):
CRM knows.
And so the CRM can say, Hey,sales rep to pick up the phone
and call the same data.
A piece of mail is delivered.
The CRM knows when we capturethe response, the CRM knows
that, right?
And so it can act intelligently.
It can act in as a step in amultichannel workflow to

(15:21):
optimize, the response of themarketing team to whatever
events are happening in thecampaign.
So,that's really, I think, areally important distinction on,
the QR code side.
What we've seen, there was acouple of events that had
happened that have reallydrastically grown QR code usage

(15:45):
and understanding first, bothApple and Google started
bundling QR code readers intheir native camera software a
few years ago.
So it used to be, you have to godownload a separate app and like
load it up and scan a QR code.
That way you don't have to dothat anymore.
You just put your camera.
But the big change that hashappened in the last couple of
years is the pandemic.

(16:06):
Since the pandemic, anybody'sbeen at a restaurant anybody's
gone out anywhere, you have touse a QR code to get at a lot of
the information.
And so everybody's gettingcomfortable when using QR codes
and, you know, we bundle them asa part of our platform for free.
We've seen a 50% year over yeargrowth over the last three years

(16:26):
in QR code usage.
And we think it's primarilybecause of the pandemic.

Play the King (16:31):
That is, that is really fascinating.
Just given the way that theworld works, maybe, maybe soon,
you know, companies will abandonan email and then there'll be a
swing back.
some smart guy like youwill figure that out.
That's amazing.
So, Dennis, you convinced me,I'm on your website right now,
actually thinking about how Ican use this for my own company.
Where andhow do people find you?
How do people get started?
What do you recommend?
What do they need to know whenthey come to you?

(16:51):
Take us through that.

Dennis Kelly (16:53):
Absolutely.
So we designed Postalytics sothat marketers and business
people can sign up for free anduse the software on a really
self-served basis, much in thesame way you would with a tool
like a MailChimp or any of theother, really easy to use
approachable marketing toolsthat have just blown up over the

(17:16):
last decade.
We have a sales team that canassist.
If you've got more sophisticatedcampaigns, you want to do
integrations with your CRM.
We've got an ability to help yoube successful with lots of
different resources.
But the primary thing is go toPostalytics.com, sign up for a

(17:37):
free account, and you can getstarted with just a few clicks.
It's very, very simple.

Play the King (17:42):
Fantastic.
That's Postalytics.com.
Dennis, this has been reallyfascinating.
I feel like we've barely scratched t he surface so much to
dig in here.
I want thank you for your time.
This has been great!

Dennis Kelly (17:57):
George, thank you so much for the chance to speak
with you today.
I'd really enjoyed it.
And I hope that the audiencefinds it helpful.
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