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News Release from: Direct Marketing Association | Subject: DMA Participation Media Report
Edited by the Marketingservicestalk Editorial
Team on 02 May 2008
DMA calls for responsible direct
marketing
New consumer research from the DMA, in association with Experian, highlights the difference in consumers' perceived use of direct marketing with reality.
On the whole, actions taken in response to receiving direct communications (as recorded in the diaries) are more positive in reality than perception This is particularly true of email (17.6 per cent perceived positive response versus 33 per cent actual positive response) and direct mail (22.7 per cent perceived positive response versus 44.4 per cent actual positive response)
This article was originally published on Marketingservicestalk on 26 Jun 2007 at 8.00am (UK)
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The findings demonstrate the need for marketers to improve the image of direct marketing by reducing wastage and ensuring consumers are on the receiving end of well-thought-through, targeted and relevant communications.
The DMA Participation Media Report explores the consumer's actual experience of direct marketing using an innovative diary approach.
Conducted by the Future Foundation, the research was carried out in two parts - 2,000 people were questioned via face-to-face interviews about their attitudes towards communications and their actions as a result of receiving direct communications.
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All those who were interviewed were also given a direct communications diary to compile, in which they noted down the occasions they received direct communications from companies over the course of one day and how they responded.
Baroness Peta Buscombe, chief executive of the Advertising Association, commented: "It is vital that marketers reduce wastage and ensure consumers are on the receiving end of well-thought-through, targeted and relevant communications.
"It's all about targeting the right audience at the right time - a basic tenet of direct marketing.
"In many ways the research findings are heartening and underline the vital need for the industry to highlight its commitment to social responsibility in providing the valuable amenity of direct marketing.
"The industry is committed to reducing waste through a positive environmental approach and optimal targeting".
The report also shows that marketers face an ever-growing challenge in attracting the attention of consumers.
A combination of new technology, the blurring of boundaries between work and personal space, an increase in consumers describing themselves as 'hectic' and consumer empowerment means that marketers need to work even harder to stand out and get their messages heard.
According to research findings, consumers are actively getting involved in the marketing process in an attempt to filter out the information that they need.
This increased consumer empowerment is clear when gathering information before making a purchase - the research shows that the majority of consumers prefer to be in control of how and when they gather information, rating talking to the retailer and word of mouth as being the preferred method.
Such empowerment is also evident with the report highlighting decreasing levels of loyalty.
The level of positive responses from past customers had decreased from 43 per cent to 34 per cent, showing that consumers are more willing to switch suppliers.
Consumers are also taking more control of who can contact them.
The research illustrated a reluctance on the part of consumers to share their personal information with companies which is no doubt in light of heightened awareness of identity fraud and high-profile incidences of companies and government departments losing personal data.
A further contributing factor is that most people who took part in the research feel overwhelmed by the number of marketing communications that they are receiving.
However, the research also shows a significant increase in consumers who are happy to pick and choose how they get information about companies and their products and services.
Victoria Bytel, head of research at the DMA, said: "As consumers are increasingly taking control of how and when they access marketing communications, marketers need to avoid becoming wallpaper and achieve stand out through gaining heightened insight of their target audience and developing new stimuli and stand out accordingly".
Unsurprisingly the report shows that growth in internet access has increased across all demographics as confidence in the medium grows and access costs decrease - including an increase in the number of people accessing internet services at work.
This may be one of the factors that lies behind findings showing that the majority of purchases made in response to email marketing were at work.
For the first time since the research began, the internet has overtaken mail order for purchasing goods.
This is another reflection of the increase in the number of consumers describing themselves as 'hectic', with timesaving and flexibility cited as the main benefits of using direct marketing as a way of purchasing goods.
However, catalogues remain an important reference tool for consumers with many being used alongside the internet as a means of purchasing goods.
The more traditional direct marketing channels of direct mail, door drops and inserts were viewed more positively by consumers than in the research in 2005.
Door drops were considered to be the most interesting of all communications recorded in the diary and scored highly with regards to convenience and provision of information while direct mail saw a 10 per cent increase in positive views of the medium on 2005.
Interactive TV, field marketing and email marketing form the top three direct media in generating a purchase while television and radio ads, customer magazines and inserts lead the field in generating retail traffic.
Telephone calls, interactive TV and mobile messaging are most likely to result in respondents seeking further information.
Raman Gupta, Director of Consulting for Experian's Integrated Marketing division, commented: "The research findings simply underline the fact that in order to successfully cut through marketing white noise, brands need to take three steps to deliver marketing relevance.
"It's a given that today's consumers are cash rich and time poor.
"Therefore, engaging with people on a one-to-one level needs to be the touchstone for any campaign.
"Communications have to be powered by customer insight to build a deep understanding of each customer's and prospect's preferences and behaviours.
"Brands also need to apply the same vigour to the digital marketing world as they to do in the offline environment.
"This means taking a robust test and lean approach to determine the strengths and weaknesses in every campaign, gaining valuable information which can then be used to create a multi-channel strategy that strikes a chord with each recipient.
"Finally, marketing campaigns need to be executed in a clinical fashion.
"To do this, marketers need to use all of the tools at their disposal - from technology to marketing skills - to establish profitable relationships for both the brand and consumer.
"Smart marketing is about relevant marketing and ensuring that every pound invested yields the highest return.".
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