Direct marketing must be better targeted

Research by KDB has suggested that the vast majority of UK consumers believe that companies are failing in their efforts to reach them with relevant direct marketing communications.

The survey showed that only 12 per cent of UK consumers said they are receiving offers via direct marketing that is of personal relevance to them, while 54 per cent said that virtually none of the offers were relevant to them and 34 per cent said only some of the offers were applicable.

The KDB research also revealed that, despite the fact firms are failing to target consumers with relevant marketing communications, 42 per cent of respondents said most of the direct marketing offers they are receiving come from companies they already deal with.

The figures indicated that, in general, the younger the consumer, the more personally relevant they found the marketing communications sent to them.

The demographic group that thought the direct marketing sent to them was most relevant was the 18-24 age group, with 18 per cent saying the offers they received were pertinent and 43 per cent saying none of the offers that came to them were applicable.

This group was followed by: the 25-34 age group at 16 per cent and 56 per cent; 35-44 at 13 per cent and 56 per cent; 45-54 at eight per cent and 54 per cent; and 55+ at 10 per cent and 55 per cent.

Likewise, the younger the consumer, the more likely they are to receive a direct marketing offer from a company they already deal with.

Consumers in the 18-24 age range again led the way with 63 per cent reporting that they receive offers from companies they already buy from, followed by: 25-34 at 46 per cent; 35-44 at 41 per cent; 41-54 at 33 per cent; and 55+ at 39 per cent.

When it comes to gender, differences are less pronounced.

Women tend to receive more communications from the companies they deal with than men (44 per cent and 39 per cent respectively), but conversely, men claim to receive more relevant offers (13 per cent) than women (11 per cent).

Matt Boot, chief analyst at KDB, said: 'Given the substantial proportion of consumers who say they receive offers from companies they already deal with, we would expect the level of relevant communications to be much higher.

'At a time when retaining as many customers as possible is vital to the survival of many businesses, it is surprising that marketers aren't taking a smarter approach to communications with their customers.

'It is essential for marketers to use customer data to understand what their customers want.

'When used intelligently, customer insight can not only help businesses target existing customers properly but also identify what will attract new customers.

'The one bright spot is that companies seem to be having slightly better success at reaching younger consumers.

'E-mail marketing is a very effective means of communicating with existing customers and today's younger generations are increasingly web savvy, which almost certainly accounts for the higher levels of communication they are receiving.

'Nonetheless, too much irrelevant direct marketing, whether by e-mail, mail, text or phone, can lead consumers to become frustrated with the companies they do business with and to seek alternatives.

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