3 Things You Can Do Now to Make an ‘Earthly’ Difference

Readers of my blog know my distaste for financial service companies, utilities and other brands that admonish me in my mailbox to switch to digital statements “to help save the environment,” “save trees,” “pay it green” and other marketing hyperbole with absolutely no scientific backing. I’m waiting for three things

Readers of my blog know my distaste for financial service companies, utilities and other brands that admonish me in my mailbox to switch to digital statements “to help save the environment,” “save trees,” “pay it green” and other marketing hyperbole with absolutely no scientific backing.

I’m waiting for three things.

First, I’d love some examples—and you may post them in the comments section—of brands that are more honest and forthcoming about why they want their customers to switch to digital. It saves the organizations behind these brands money—money that either gets returned to the customer in lower prices or better service (right?), or (more likely) goes to the bottom line to improve margins. (Sorry if I’m too cynical here; it must be the prolonged winter-like weather.)

Second, I look forward to the Federal Trade Commission presenting an enforcement action that helps to educate businesses (and consumers) that the “print vs. digital” positioning of “being green” is misleading, if not deceptive or untruthful. Such a case would underscore the latest version (2012) of the FTC Green Guides and its substantiation requirement for any and all environmental marketing claims.

Third, I look forward to an independent apples-to-apples, cross-channel, life-cycle analysis of your “average” mail and digital communication in the United States. It may yet happen, but until then, we are left with helpful, but limited, research on paper, print, mail and electronics life-cycle inventories and analyses. Each of them have their own sets of assumptions, scopes and qualifications.

We don’t need the third event to happen, however, to take some helpful action on the mail side of the equation … right now. Here are three steps to consider:

  1. Educate yourself and follow the DMA “Green 15.” These 15 principles and practices apply to data hygiene and management, mail design and production, paper procurement, packaging and fulfillment, and recycling collection. I understand from contacts that a “digital” version may be in the works! Stay tuned.
  2. Label mail, catalogs, inserts and paper packaging to encourage recycling collection. That “junk mail” moniker is so yesterday. Discarded mail—after the consumer has used it—should be recycled. Close to two-thirds of municipalities in the United States now offer local recycling options for “mixed paper”—a threshold that FTC allows for recycling collection labels and “recyclable” claims. By using the DMA’s “Recycle Please” logo, mail marketers can help consumers increase awareness and participate in these programs without hurting response. Visit www.recycleplease.org for more information, and to download the latest version of the logo (which is available to DMA-member agencies, brands and organizations only).
  3. Use the FTC Green Guides—2012 version anew—to guide any environmental claims you may make.
  4. Extra Credit! Enter the 2013 DMA International ECHO Awards competition and its Green Marketing Award. The campaign does not need to be about an environmental product or cause—it only needs to demonstrate adherence to the DMA Green 15 in business action! The DMA Green 15 and Green ECHO are not about Earth Day and environmentalism—they’re about everyday marketing planning and decision-making that show efficiency and effectiveness in marketing: strategy, creative and response. The deadline is May 3—and agencies and brands may enter here: http://dma-echo.org/enter.jsp.

Now, if I only knew the carbon footprint of my blog. Hopefully, some of the information conveyed here will help mitigate the impact!

Don’t Get Trashed — Is Recycling Discarded Mail Profitable? — Part II

In our previous post of “Marketing Sustainably,” we introduced an expert discussion on whether or not recycling collection of discarded mail, catalogs, printed communications and paper packaging is profitable, and why this matters is an important business consideration for the direct marketing field. In this post, we continue and conclude the discussion with our two experts, Monica Garvey, director of sustainability, Verso Paper, and Meta Brophy, director of procurement operations, Consumer Reports.

In our previous post of “Marketing Sustainably,we introduced an expert discussion on whether or not recycling collection of discarded mail, catalogs, printed communications and paper packaging is profitable, and why this matters is an important business consideration for the direct marketing field.

In this post, we continue and conclude the discussion with our two experts, Monica Garvey, director of sustainability, Verso Paper, and Meta Brophy, director of procurement operations, Consumer Reports. The conversation is based on a Town Square presentation that took place at the Direct Marketing Association’s recent DMA2012 annual conference.

Chet Dalzell: If much of the recovered fiber goes overseas, what’s the benefit to my company or organization in supporting recycling in North America?

Monica Garvey: The benefit—companies can promote that they support the use of recycled paper because they believe that recovered fiber is a valuable resource that can supplement virgin fiber. Recycling extends the life of a valuable natural resource, and contributes to a company’s socially responsible positioning. While it’s true that the less fiber supply there is locally, the higher the cost for the products made from that recovered fiber domestically, it’s still important to encourage recycling collection. Because recovered fiber is a global commodity, it is subject to demand-and-supply price fluctuations. If demand should drop overseas, and prices moderate, there may be greater supply at more moderate prices here at home, helping North American manufacturers; however, this is very unlikely. RISI, the leading information provider for the global forest products industry, projects that over the next five years, world recovered paper demand will continue to grow aggressively from fiber-poor regions such as China and India. Demand will run up against limited supply of recovered paper in the U.S. and other parts of the developed world and create a growing shortage of recovered paper worldwide.

CD: Is there a way to guarantee that recovered fiber stays at home (in the United States, for example)?

Meta Brophy: Yes! Special partnerships and programs exist that collect paper at local facilities and use the fiber domestically, allocating the recovered paper for specific use. ReMag, for example, is a private firm that places kiosks at local collection points—retailers, supermarket chains—where consumers can drop their catalogs, magazines and other papers and receive discounts, coupons and retailer promotions in exchange. These collections ensure a quality supply of recovered fiber for specific manufacturing uses. It’s a win-win for all stakeholders involved.

I recommend mailers use the DMA “Recycle Please” logo and participate in programs such as ReMag to encourage more consumers to recycle, and to increase the convenience and ease of recycling.

CD: What’s the harm of landfilling discarded paper—there’s plenty of landfill space out there, right?

MG: Landfill costs vary significantly around the country—depending on hauling distances, and the costs involved in operating landfills. In addition, there are also environmental costs. By diverting usable fiber from landfills, we not only extend the useful life of a valuable raw material, but also reduce greenhouse gas emissions (methane) that result when landfilled paper products degrade over time. There are also greenhouse gases that are released from hauling post-consumer waste. While carbon emissions may not yet be assessed, taxed or regulated in the United States, many national and global brands already participate in strategies to calculate and reduce their carbon emissions, and their corporate owners may participate in carbon trading regimes.

CD: You’ve brought up regulation, Monica. I’ve heard of “Extended Producer Responsibility” (EPR) legislation. Does EPR extend to direct marketers in any way?

MG: EPR refers to policy intended to shift responsibility for the end-of-life of products and/or packaging from the municipality to the manufacturer/brand owner. It can be expressed at a state level via specific product legislation, framework legislation, governor’s directive, or a solid waste management plan. EPR has begun to appear in proposals at the state level in the United States. EPR, for better or worse, recognizes that there are costs associated with waste management on all levels—not just landfilling, but waste-to-energy, recycling collection and even reuse.

These waste management costs currently are paid for in our taxes, but governments are looking to divert such costs so that they are paid for by those who actually make and use scrutinized products. Thus EPR can result in increased costs, were states to enact such regulation on particular products such as paper, packaging and electronic and computer equipment. Greatest pressure to enact EPR most likely focuses on products where end-of-life disposition involves hazardous materials where recycling and return programs may make only a negligible difference. Many will state that the natural fibers in paper along with the extremely high recovery rate of 67 percent makes paper a poor choice for inclusion in any state EPR legislation. That is also why the more we support the efficiency and effectiveness of existing recycling collection programs, the less pressure there may be to enact EPR regulations directly. It will likely vary state to state where specific concerns and challenges may exist.

CD: Does the public really care if this material gets recycled? Do they participate in recycling programs?

MB: Yes, they do. Even a public that’s skeptical of “greenwashing”—environmental claims that are suspect, unsubstantiated or less than credible—participates in recycling collection in greater numbers. Both EPA and American Forest & Paper Association data tell us the amount of paper collected is now well more than half of total paper produced, and still growing—despite the recent recession and continued economic uncertainty. Recycling collection programs at the hometown level are politically popular, too—people like to take actions that they believe can make a difference. And as long as the costs of landfilling exceed the costs or possible revenue gain of recycling, it’s good for the taxpayer, too.

CD: At the end of the day, what’s in recycling for my brand, and the direct marketing business overall?

MB: I see at least three direct benefits—and nearly no downside. First, a brand’s image benefits when it embraces social responsibility as an objective. Second, being a responsible steward of natural resources, and promoting environmental performance in a way that avoids running afoul of the Federal Trade Commission’s new Green Guides environmental claims—positions a brand well in practice and public perception. And, third, and I see this firsthand in my own organization, both the employee base and the supply chain are more deeply engaged and motivated as a result, too. Certainly, in the direct marketing business overall, there are similar gains—and I’m excited that the DMA has embraced this goal for our marketing discipline.

Catalogers & Publishers Get ‘Lucky’ as Their Mail Gets a Valuable Second Life

I recently took a trip to Sonoma County, Calif. While I was there, I learned of an innovation with a firm called REMAG that would have consumers return their used, mailed catalogs and magazines to REMAG-administered kiosks and recycling collection bins in test store locations. By scanning a barcode on the label of a returned catalog or magazine at the kiosk location, the consumer can receive multiple coupons of their choice for a future purchase from a publisher or catalog, a wide variety of store items, or other kiosk marketing sponsor-partner.

I recently took a trip to Sonoma County, Calif., and while the trip involved some sight-seeing among my business goings-on, it also had its share of personal visits to the local grocer, a nearby store called Lucky.

Lucky is part of a store chain owned by a firm called SaveMart, another California-based food retailer. SaveMart operates both Lucky and SaveMart in 243 store locations throughout California.

While I was there, I learned of an innovation with a firm called REMAG that would have consumers return their used, mailed catalogs and magazines to REMAG-administered kiosks and recycling collection bins in test store locations. By scanning a barcode on the label of a returned catalog or magazine at the kiosk location, the consumer can receive multiple coupons of their choice for a future purchase from a publisher or catalog, a wide variety of store items, or other kiosk marketing sponsor-partner. It’s not that much different from returning cans and bottles to a kiosk, except catalogs and magazines don’t come with deposits to be redeemed—consumers instead are rewarded with coupons for recycling.

It struck me how much of a win/win/win this is for everyone, and made me curious as to whether or not REMAG, which is a two-year-old company, is set to take off.

Think about all the benefits that are accrued here among stakeholders:

The consumer gets a handily located recycling kiosk just as they are entering a food retail location for this highly desired grade of recovered paper—old catalogs and magazines (OMG). OMG is highly valued since its fibers are usually long, dense and strong, making it a valuable component of subsequent manufactured recycled paper products. For their efforts, the customers are awarded a discount, coupon or other incentive to purchase from the very companies and brands they frequent.

For the retailer, REMAG kiosks are a great way to attract new customers and reward customer loyalty. The retailer also generates revenue for the valuable OMG that is recovered at the kiosk, alongside the customer purchases made during the store visit. In addition, with five cents of every coupon going to a local charity, the store gets customer “good will” for siting the kiosk and is assisting the local community—always popular for retailers. Lastly, as another recycling station—in this case for OMG paper—the REMAG kiosk is easily integrated into a store’s already-existing recycling collection center (where bottles and cans are collected, and deposits redeemed).

The catalog retailer and magazine publisher also gain from good will, while extending future purchase opportunities to the consumer who is performing the recycling collection task. (Most likely these consumers are already a catalog prospect or customer, or subscriber or casual reader of the magazine.) In turn, by way of incentives, these marketers may receive a new merchandise purchase by way of the coupon, or a new, renewed or gift subscription that otherwise may have gone untapped, or pushed off to another unspecified time. As magazine newsstand sales wane, this innovation could be an important method to attract new customers and remind readers to renew, or to perhaps extend a gift subscription to another.

REMAG gains, too. Whether or not the kiosks carry the REMAG branding, or that of the host store or other marketing partner (publishers, catalogers, recyclers, paper companies, etc.), the company gets to share a percentage of the coupon redemption revenue for every new product order or subscription it generates for its partners, as well as revenue for category sponsorships.

Local recyclers or paper companies with which REMAG does business get to put the collected papers to subsequent productive use—ensuring another life for a valuable fiber and an affordable source for that fiber. Despite the uncertain economy, there is a critical shortage of recovered paper—and all indications are that this commodity will continue to grow in demand globally. Magazine publishers and catalogers have an easy way to show that they are part of the solution.

Think global, act local. I suspect most California consumers, like most Americans, love to recycle, or at least support recycling collection activity as a matter of habit. The key is to make recycling collection easy and convenient. With a financial reward for recycling, both REMAG and SaveMart are excited about the prospects for a successful trial.

According to REMAG’s sustainability consultant David Refkin, the Lucky/SaveMart kiosk placement agreement initially will involve up to 8 stores in the Bay Area and the Central Valley of California for an initial test. If all goes well, it will likely roll out to other Lucky/SaveMart locations, too. One of the pilot location stores will be in San Bruno, very close to San Francisco Airport should you happen to be in the neighborhood.

For REMAG to be successful, many moving parts will have to come together successfully. There will need to be promotion of the participating store drop-off locations, as well as accessibility and awareness to the consumer. The collected material will need to be picked up, transported or distributed to a local or regional recovered fiber user.

The host store locations will hope to see local residents participating cleanly—as they potentially grow business by attracting new customers who happen to learn of the recovery drop-off sites, and choose to use them. And catalog retailers and magazine publishers will need to participate as well, to make sure they are leveraging this new and environmentally friendly “channel” in a smart business way that engages their prospects and customers.

Let’s see what happens in California and REMAG’s test there. We all might stand to get a little bit lucky.

Have a Happy & Profitable Earth Day 2012! A Good Time to Enter the ECHO Awards’ Green Marketing Competition

For the past three years, the Direct Marketing Association has awarded a Special ECHO Award dedicated to incorporating sustainable, environmental concerns in marketing. The award is given NOT for being “green” (which is self-limiting), but for being successful in marketing—read, profitable—and demonstrating environmental performance in the process.

For the past three years, the Direct Marketing Association has awarded a Special ECHO Award in its International ECHO Awards competition dedicated to incorporating sustainable, environmental concerns in marketing: The ECHO Green Marketing Award.

The three winners to date—the United States Postal Service (2009), the World Wildlife Fund (2010), and Consumer Reports (2011)—each have taken the direct marketing process and used the DMA “Green 15” environmental marketing practices and principles to illustrate how marketing activity can be both successful in driving response and interaction, and adhere to best practices for environmental performance. Note, the award is given NOT for being “green” (which is self-limiting), but for being successful in marketing—read, profitable—and demonstrating environmental performance in the process.

Importantly, the award—which is judged by members of the DMA Committee on the Environmental and Social Responsibility, under the auspices of the DMA ECHO Awards Committee—looks to evaluate and recognize the marketing process, and not the product or service being marketed. Thus, the product or service being marketing need not be environmentally focused (though it certainly can be). What the judges look for is the usual hallmarks of an ECHO Award-winning direct-response campaign—strategy, creative, results—and adds a fourth component, adherence to environmental principles which apply to direct marketing. These principles are clearly stated in the DMA Green 15, which articulate list hygiene, paper procurement and use, printing and production, mail design, fulfillment and recycling collection & pollution prevention in everyday direct marketing business decision-making.

To date, each previous winner interpreted this objective in in very different ways. The USPS sought to demonstrate how direct mail advertising can be very environmentally sensitive (and sensible) in its multi-faceted “Environmailist” campaign, targeted at advertising agencies and brands that use the direct mail channel. In Australia, the World Wildlife Fund, working to promote its “Earth Hour” environmental awareness effort, sent carbon-neutral plant spikes via potted plants to office managers around the country to promote greater efficiency in office environments. Last year, Consumer Reports—in promoting subscription to its ShopSmart and Consumer Reports magazines—used the Green 15 to audit each of its business decisions in data management, supply chain engagement, procurement, production, logistics and customer communication, and to apply the principles where they made economic sense or were revenue-neutral.

The deadline for entering the 2012 DMA International ECHO Marketing Award competition is April 25, 2012, with a late deadline of May 2, 2012: http://dma-echo.org/enter.jsp

As brands and agencies enter the Awards, there is an entry field where consideration for the ECHO Green Marketing Award is prompted. If the “yes” box is checked, an additional Green Marketing Award Addendum can be promptly accessed that allows up to 1,000 words to explain how the entry:

  • Employs Innovative Green Tactics & Strategies Employed Throughout the Direct Marketing Process
  • Inspires Action & Making a Difference to the Planet
  • Demonstrates Measurable Environmental Impact of the Campaign
  • … all the while being a successful marketing campaign overall.

Happy Earth Day 2012—and take the time to show others how your brand or your client’s brand is leading the way in incorporating environmental sensitivity in its everyday marketing decision-making—and producing outstanding, profitable results. I’m hopeful I will be writing about your winning campaign once the 2012 winner is announced during the DMA2012 Conference this October in Las Vegas, NV.

New Paper Recovery Data Shows Impact of Recession, Digital Media

New data from the American Forest & Paper Association regarding paper recovery rates in the United States has some good news—and not-so-good news—regarding U.S. recycling collection. As marketers, we need to pay close attention to these rates, and take active steps to support increased recovery, since such recovery can have positive impact on recycled paper supply and pricing, as well as other marketplace concerns regarding our print communications and paper packaging.

New data from the American Forest & Paper Association regarding paper recovery rates in the United States has some good news—and not-so-good news—regarding U.S. recycling collection. As marketers, we need to pay close attention to these rates, and take active steps to support increased recovery, since such recovery can have positive impact on recycled paper supply and pricing, as well as other marketplace concerns regarding our print communications and paper packaging.

The good news is that the paper business has continued to increase recovery rates for all types of paper, achieving a record 66.8-percent recovery for the nation [see the first image in the media player at right].

For printing and writing grades, recovery rates slipped from its 2009 recovery percentage peak of 61.0 percent, now registering a 56.8-percent recovery rate, but still ahead of the pre-recession recovery rate [see the second image in the media player at right].

In both the overall market for all grades combined, and the printing & writing grades market, the peak year for paper consumption (the bars on both of the preceding graphs) was pre-recession 2007, a high point we have yet to re-attain in both categories as our economy has returned to tepid growth.

However, by looking at just printing & writing grades consumption, the falloff from the 2007 peak, and the lack of recovery, is far more pronounced than in the paper market overall—fully a 23.7-percent drop from 2007 to 2011. This is certainly a sign that while the recession prompted a pullback, digital media has brought on a migration from print communications, and most certainly in postal mail. That data is supported by declining U.S. Postal Service First-Class Mail volume data, and near-minimal growth in Standard Mail.

Thus, the generally higher recovery rates are generated by higher recycling collection activity or perhaps a more expansive recovery infrastructure, but also by source reduction—there’s just less printing and writing papers being generated.

Certainly, the role of direct mail is changing in an increasingly mobile, digital age—and thankfully, we’re getting a good percentage of what we do consume recycled. We need to do better.

Helpful Links: