direct marketing Archives

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4 Things Marketers Need To Know About Direct Marketing Right Now

November 27, 2023 No Comments

Every marketer worth their salt is constantly analysing consumer data. For those who specialize in collecting that intel — through direct metrics, surveys and other instruments — well, let’s just say there’s no rest for the weary.

At Quad, we work with more than 2,900 marketers across every type of vertical — from automotive, CPG and retail to financial services, pharma and healthcare — so we’re constantly hearing about the challenge of making sense of the nonstop flood of data. How much data is too much data? Which data is actually actionable? And when it comes to analysing specific campaigns and channels, how can we see the forest for the trees?

The answer to that last question is to step back — way back — but doing so is, of course, a lot harder in practice than in theory.

That’s why at Quad we’ve built a research and insights practice that regularly surveys both consumers and marketers on their engagement with, and deployment of, channels — everything from digital and broadcast to social media and direct — independent of specific campaigns.

Our recent big-picture research effort focuses on direct marketing (both digital and print). It’s available in the form of a free white paper (more on that below), but for now I want to share four key findings:

Marketers remain heavily committed to direct mail

Despite rising costs — thanks particularly to higher postal rates — nearly seven out of 10 (68%) marketers surveyed reported that their direct mail budget allocation had either increased or stayed steady year-over-year.

Notably, financial services marketers reported the highest year-over-year increase in their direct mail ad budgets — 47% — followed by insurance, retail/wholesale and telecom marketers, who reported an average 26% increase.

Consumers — especially younger consumers — find direct marketing to be useful

In Quad’s survey of consumers, 84% of respondents said that the direct mail they receive from a company they purchase from regularly is “extremely useful” (24%), “very useful” (26%) or “somewhat useful” (34%) — statistically on par with email (with a combined extremely/very/somewhat usefulness of 87%).

Notably, younger generations are the most enthusiastic about the usefulness of direct marketing — both in the form of direct mail and email. A total of 90% of 18- to-34-year-olds said they found email extremely/very/somewhat useful, and 85% said the same about direct mail.

Among 35- to 49-year-olds, 88% reported the email they received was extremely/very/somewhat useful, the same percentage that said direct mail they received was extremely/very/somewhat useful. These two age groups reported a stronger embrace of email and direct mail than older generations.

Multitouch — and personalization — matters

Quad’s consumer research strongly supports the value of multichannel communications. Nearly four out of 10 (39%) of consumers said they are extremely or very likely to respond to an advertising promotion when they see it across multiple channels; the tally rises to 78% across the extremely/very/somewhat likely responses.

And consumers appreciate when multichannel communication is personalized across all the channels. Among consumers surveyed, 44% said they are extremely or very likely to open a direct mail offer when it’s coordinated with a personalized email and social media ad; again, the tally rises to 78% when “somewhat likely” responses are added in.

Direct mail isn’t fleeting — and consumers like that about it

In this age of transitory media experiences, Quad’s survey revealed that consumers — across all product and service categories and age groups — hold onto direct mail. The reason? They see it as a resource.

For instance, 46% of consumers say they’ve saved a piece of direct mail because it contained “information I intend to use/follow-up on.” Also notable: Nearly a third (29%) have saved a piece of direct mail to “share with friends and family”; i.e., they see direct mail as a tangible form of, or back-up for, word-of-mouth marketing.

Where should you go from here?

We embarked on this research project with the goal of providing marketers with the big-picture consumer intel they need to help plan direct marketing campaigns — while also giving them a sense of how their peers are thinking about and deploying DM.

The data above is just a sampling of the insights contained in “The direct marketing revolution 2023: New consumer & marketer intel reveals how brands should shift their DM strategies,” Quad’s latest white paper.

If you’re a direct marketer who wants to see the forest for the trees, I invite you to download a copy.

Feature Image Credit: Getty

By Arthur Hall

As Sr. Director of Consumer Research & Insights for Quad, Arthur leads a team of research and technical resources focused on…Read more

Sourced from Forbes

In News

What is Direct Marketing? Key Tips, Examples & Benefits (2023)

August 22, 2023 No Comments

By Sarah Cha

Navigating the world of direct marketing can feel like deciphering a complex puzzle, especially if you’re just getting your feet wet.

But don’t fret, you’re in the right place! We’re about to decode the mystique of direct marketing and hand you the keys to its mastery.

In this guide, we will demystify the concept, distinguish it from indirect marketing, delve into its numerous benefits, and bring it to life with real-world examples.

Whether you’re a seasoned marketer or a novice entering the business world, we’ve got you covered.

What is Direct Marketing?

Imagine if conversations between businesses and their customers were like intimate chats at a coffee shop.

Direct marketing allows for this kind of personal connection, ensuring an atmosphere that feels less like a bustling market square and more like a cozy tête-à-tête.

This marketing approach empowers businesses to sidestep middlemen advertising media and directly address their customers (usually through mail, email, social media, and/or texting campaigns), fine-tuning their communication to their audience’s specific desires and requirements.

Characteristics That Set Direct Marketing Apart

In a world filled with a variety of marketing approaches, what makes direct marketing stand out?

Personalization

In direct marketing, businesses don’t merely shout out into the void, hoping someone hears them.

Instead, they engage personally with the customer, crafting messages tailored to individual needs, wants, and preferences.

For instance, consider how Netflix recommends shows based on your viewing history, making you feel seen and understood. It’s like having a friend who knows your taste so well, they always suggest the perfect movie for your Saturday night in.

Or think of a bookstore that recommends books based on your previous purchases. It’s like a friend who knows your reading habits well and makes suggestions you’ll likely enjoy.

Similarly, it allows businesses to understand their customers’ preferences, enabling them to provide value and build lasting relationships.

That’s the power of a customer-centric approach in direct marketing. It uses insights derived from customers’ data, their habits, preferences, and behaviour, to tailor marketing messages that hit the bull’s eye.

This not only increases customer satisfaction but also loyalty, paving the way for long-term business success.

Measurability

One of the most appealing aspects of direct marketing is that it’s quantifiable.

Imagine running a marathon without knowing your time or pace — sounds frustrating, right?

It avoids this by allowing businesses to measure their success rates, making campaign adjustments easier and more effective.

When you send out an email campaign, for example, you can track open rates, click-through rates, and conversion rates, giving you clear insights into your campaign’s performance.

Cost-effectiveness

Every dollar counts in business, and direct marketing is like having a laser-guided system for your funds.

By targeting only those most likely to be interested in your product or service, you avoid wasting resources on unlikely prospects.

For instance, a pet store owner might use direct mail to target pet owners within a specific zip code, ensuring that their message reaches the right audience and increasing the likelihood of conversions.

Direct Marketing vs. Indirect Marketing

Direct marketing is all about precision and customization. Picture a high-end boutique that knows your clothing preference and reaches out to you with a curated selection when new stock arrives.

The personal touch enhances customer satisfaction and fosters customer loyalty.

However, just as a sudden call from a distant relative can feel intrusive, so can poorly managed direct marketing.

Businesses must strike a balance, personalizing their approach without crossing the line into unwanted territory.

On the flip side, indirect marketing operates on a broader scale.

Imagine a billboard along a highway; it speaks to anyone and everyone who passes by. It’s less targeted, but it has the advantage of reaching a more extensive audience, increasing brand visibility and awareness.

Yet, this approach often lacks personalization.

It’s like receiving a mass-produced holiday greeting card — it might be nice, but it doesn’t quite have the warmth of a handwritten note.

4 Successful Examples of Direct Marketing That’ll Inspire Your Own

Ever wonder how big brands pull off successful direct marketing campaigns?

Let’s pull back the curtain and see how some famous companies have used direct marketing to connect with their customers and amplify their business growth.

Example 1: Glossier’s Customer-Centric Approach

Glossier’s entire marketing strategy is built around direct communication with their customers.

From developing products based on customer feedback to their effective use of social media for engagement, Glossier embodies the principles of direct marketing.

The brand has built a loyal customer base by making every customer feel like a part of the product creation process.

Example 2: Spotify’s Year Wrapped

The Spotify “Year Wrapped” campaign is a brilliant example of digital direct marketing.

At the end of each year, Spotify sends users a personalized review of their listening habits, favourite artists, and genres.

This personalized insight not only delights the users but also encourages them to share their wrap-up on social media, fostering a sense of community among Spotify listeners.

Example 3: Amazon’s Personalized Recommendations

Amazon has harnessed the power of direct marketing through its personalized recommendations.

Based on users’ previous purchases and browsing history, Amazon suggests products that they might be interested in.

This direct, tailored approach not only improves the shopping experience but also boosts sales and customer loyalty.

Example 4: Domino’s Pizza Tracker

Domino’s Pizza Tracker takes direct marketing to another level.

The interactive platform keeps customers engaged from the moment they place their order until it arrives at their doorstep.

This real-time update, combined with personalized emails and SMS messages, makes customers feel involved in the process, creating a deeper connection with the brand.

Key Takeaways From the Best in the Business

Looking closely at these examples, we can see the profound impact direct marketing can have on business growth and customer engagement.

Each of these campaigns leverages the core principle — connecting with customers on a personal level.

Drawing lessons from these success stories, it’s clear that the key to a powerful direct marketing campaign lies in understanding your customers and providing them with personalized, engaging content.

Whether it’s through personalized recommendations, interactive experiences, or making customers feel part of the process, successful direct marketing can make your customers feel valued and special, driving loyalty, growth, and success in your business.

Remember, it’s about more than just selling a product or service — it’s about building meaningful connections with your customers.

Top Tips for Direct Marketing Mastery

Just like learning to play an instrument or mastering a sport, becoming a whiz at direct marketing requires understanding the rules of the game, practicing the right techniques, and constantly refining your approach.

But don’t fret; we’re here to guide you on this journey.

Let’s delve into some practical tips…

Know Your Audience: In the realm of direct marketing, knowledge is power. The more you understand about your audience — their needs, preferences, and behaviours — the more effective your campaigns will be. So, don your detective hat and dig deep into your customer data.

Personalization is Key: No one likes to feel like just another number. Make your customers feel special by tailoring your messages to their individual needs and preferences. Remember the magic of Amazon’s personalized recommendations or Spotify’s Year Wrapped campaign? That’s the power of personalization!

Test and Refine: Direct marketing isn’t a ‘one-and-done’ deal. It’s an ongoing process of testing, learning, and refining. Consider every campaign a learning opportunity. Keep track of what works and what doesn’t, and continuously tweak your approach for better results.

Keep It Simple and Clear: When it comes to marketing messages, clarity trumps cleverness. Your message should be clear, concise, and easy to understand. Stay away from jargon or complicated language. Remember, your aim is to communicate, not to confuse.

Strong Call to Action (CTA): A direct marketing message without a strong CTA is like a ship without a rudder. Ensure your CTA is clear, compelling, and guides the customer towards the action you want them to take.

Measure Your Success: One of the beauties of direct marketing is its measurability. Make sure you’re keeping track of key metrics like response rate, conversion rate, and ROI to gauge the effectiveness of your campaigns. This way, you’ll know if you’re hitting the bullseye or need to adjust your aim.

Embrace Technology: The world of direct marketing is constantly evolving, with new technologies offering innovative ways to connect with customers. From email marketing tools to CRM software, leveraging the right technology can give your efforts a major boost.

Armed with these tips, you’re well on your way to becoming a master of direct marketing.

Remember, the essence of direct marketing is creating genuine, personal connections with your customers. It’s about listening, understanding, and responding in a way that makes your customers feel seen, heard, and valued.

Harnessing the Power of Direct Marketing

We get it. Direct marketing might seem like a beast you’re unsure how to tame.

But remember, every climb begins with a simple step.

This article offered you a backpack filled with knowledge, strategies, and examples to start your ascent.

So, tie those metaphorical hiking boots and make your move.

The view from the top – that successful direct marketing campaign — is worth the journey!

By Sarah Cha

Sarah Cha is an avid writer, reader, and lifelong learner who loves making magic behind-the-scenes at Smart Blogger. When she’s not wrangling words onto a screen or page, you can find her strumming a guitar, tickling a canvas, or playing fetch with her favourite four-footed friend!

Sourced from SmartBlogger

In News

Merging offline and online marketing is a smarter way to drive sales

October 11, 2021 No Comments

By M Muneer

E-fulfilment, or an electronic response, blended with traditional methods is the key to optimising a company’s one-to-one marketing efforts

E-fulfilment, an electronic response to a direct marketing request, can be an important part of a company’s marketing strategy to reach customers directly. In the right situation and to the right customer, it can offer several advantages.

The three biggest advantages of e-fulfilment are:

1 Speed: You meet targets quickly.

2 Cost-effectiveness: In some instances, it makes it cheaper to reach the customer.

3 Control/customisation: It allows for adjusting your campaign in real time, test and move forward.

One to one with customers—when content is completely personalised, including the cover letter/note, types of attachments and the content of each attachment—is expensive and time-consuming using land-based methods.

But not all situations call for solely an e-fulfilment system. Careful consideration of the types of the target being reached and the company’s marketing objective will determine the appropriate combination of e-based and land-based fulfilment components to be utilised.

For example, if a credit-card provider’s database identifies a person with an outstanding credit rating and a high income, that person may get a customised email that includes an offer to upgrade their card and links to exotic vacation destinations with special offers.

Someone else with a good credit history may get an offer for a balance-transfer offer or personal loan proposal.

Tweak as you go along

Flexibility is an important benefit of a fully integrated e-fulfilment system. Such a system makes it easy to evaluate a campaign’s rollout in real time—watch the pick-up on the first cell, tweak the campaign, watch the second cell go out, make another adjustment, and so forth.

With the proper systems in place, e-fulfilment offers direct marketers a wide range of options. It permits increased analysis and customisation of future messages, allowing marketers to see when people open the emails, and track as they click through to website links.

Real-time web reports of hits are available, detailing soft bounce-backs (server is temporarily down or a mailbox is full) and hard bounce-backs (service no longer exists or e-mail address is not valid).

If an email bounces back with a bad address or full mailbox, companies may have a call centre representative double-check with the intended recipient to confirm how they want to receive information.

The following examples offer an overview of possibilities and a preview of where things are heading for SMEs.

Case 1: Fewer reminders, more completions

A liability insurance company was using mail fulfilment as a marketing tool with its professional services clients. Names and detailed information were generated daily, with policies printed and mailed twice a week–incorporating e-fulfilment. Maximising its effectiveness was simply a matter of designing a system that converted content into a PDF file at the point it would have “gone to print” in the traditional fulfilment process.

These files are created in the same pre-printed format that customers would have received in hard-copy form. Like its traditional counterpart, the body of the e-fulfilment text message is highly personalised based on a client’s insurance history, with rate and coverage information, policy type, brand and payment method received/requested but it also includes a link to the insurer’s website for more information.

The policy itself is attached to the email and incorporates client-specific information. In addition, the insurance company finds that email enables it to send fewer reminders to get policy renewals and it is receiving more payments at a faster cycle. This could be modified for individual customers today with technology.

Case 2: Talk directly to your prospect

In many instances, customers and potential customers can request information through a variety of channels, including a call centre, website or mail.

In one such instance, a pharmaceutical manufacturer generates data daily from these sources. Based on the depth of information in the marketing database—gender, age, products requested and used—the development of highly customised text messaging and rich format attachments are possible.

The system also enables custom e-mail messaging with links to specific parts of the company’s website. In this case, the company is developing a true one-to-one marketing campaign that, over time, can be refined based on this interaction loop.

Today, companies using e-fulfilment with rich content are also engaged in parallel mail campaigns. They are not looking to abandon traditional fulfilment methods but rather want new ways to get closer to their customers.

As consumers click through the company’s websites via email links, each visit adds to their profile for future e-marketing efforts. As the file on each person is enhanced, marketers can cost-effectively move into more focussed cross-selling and up-selling campaigns.

Overall, the trend is for companies to implement one-to-one marketing tools. More and more, they are looking for expertise from direct marketing service providers that enables them to reach customers and prospects within a very structured campaign but target each one with a specific package of information via their mailbox, e-mailbox, over the phone or a website.

E-fulfilment enables you to watch a campaign unfold in real time and improve it as needed, including the way individual follow-up is done. And blending e-fulfilment (with its reporting and campaign management capabilities) with the appropriate traditional fulfilment methods is the key to optimising a company’s one-to-one marketing efforts.

By M Muneer

M Muneer is the managing director of CustomerLab Solutions, a consulting firm.

Sourced from moneycontrol

In News

Innovations in direct mail help brands shout louder in the digital era

March 2, 2018 No Comments

By Steve Hemsley

Direct mail is experiencing something of a renaissance, with innovation and more robust measurement giving this traditional medium a new lease of life.

After years of fire-fighting to dispel myths about its effectiveness and measurement, direct marketing – and in particular direct mail – is enjoying something of a revival.

Industry and creative innovation is re-engaging advertisers and media agencies that had perhaps fallen out of love with this traditional medium. While the arrival of the Joint Industry Committee for Mail (JICMail) the audience data standard in January adds another layer of authority to the channel.

The numbers are looking positive too. After a period of decline, direct mail ad spend rose 5.9% year on year during the third quarter of 2017, according to the latest data from the Advertising Association and Warc. It is the third largest media channel in the UK after online and TV, with annual ad spend standing at £1.7bn in 2016, and while spend was down 9.1% between 2015 and 2016, it is predicted to rise 0.9% in 2017.

Separate data from IPA TouchPoints suggest it is well received too, given 38% of people buy or order something after reading mail and 87% of adults keep some mail for longer than one month.

Not surprisingly, the direct marketing industry is full of confidence and determined to get its voice heard in 2018.

New data audience standard

The launch of JICMail has already brought renewed focus to direct mail. A joint venture between the DMA, IPA, ISBA, Royal Mail and postal operator Whistl, it is designed to encourage best practice and provide brands and media agencies with more robust measurement of mail readership, reach and the frequency of exposure to each item.

Run in a similar way to BARB’s data on TV audiences, a nationally representative sample 1,000 people operated by Kantar TNS will photograph the mail that comes through their letterbox and record what action they take over a four-week period.

For geographic targeting it provides the most accurate approach and can deliver something tangible which other forms of media cannot.

Patricia Lavender, Thames Water

Despite the positive mood, the DMA’s managing director Rachel Aldighieri is not complacent. She says there is still work to be done, including the need to demonstrate that direct mail campaigns are not hard to implement or measure.

“2018 will be about elevating the craft of direct mail,” she says. “You only have to look at the DMA Awards to see how mail campaigns can be beautifully crafted around the copy, images and even the material used.”

Ikea created an embroidery-style mailing to resemble an email

She cites retailer Ikea’s embroidery cross-stitch mailing, which resembled an email. It was created by agency LIDA and sent to Ikea’s loyalty scheme members to encourage more people to sign up for marketing emails.

“Best practice means being creative and memorable but avoiding being gimmicky,” says Aldighieri. “You have to think about the customer benefit and entice, intrigue and entertain those being targeted.”

GDPR is nearing

The introduction of the General Data Protection Regulation (GDPR) on 25 May could be good news for direct mail.

As both processors and controllers of personal data, direct marketers need to be aware of how GDPR will affect them, but Aldighieri is convinced it provides opportunities for brands to be more innovative with data.

Door drops are already proving a useful way to get consumer permission, particularly for charities. According to JICMail data, 61% of all door drops opened are read, looked or glanced at, and the average door drop is shared two or three times within a household.

“GDPR is a chance for the industry to transform how it operates and, rather than scaremongering about fines, it is a chance to talk to brands about the potential for mail and what can be achieved if you are more creative,” says Aldighieri.

The Information Commissioner’s Office (ICO) has confirmed brands do not need consent for postal marketing if they can use legitimate interests. The Data Protection Network has a test that marketers can use. There are also concerns that cold data will not be as widely available and worries about fines are real, but the ICO has said it will be a pragmatic regulator.

Ripe for innovation

Direct marketing is a channel which has had to innovate in recent years. The launch of the JICMail audience data standard is regarded as a game changer by many in the industry, while the use of programmatic direct mail is getting marketers excited.

The ability to send personalised direct mail to potential customers who have abandoned an online basket or browsed particular pages is motivating many brands.

Royal Mail is supporting tech startup Paperplanes in this area. The company is able to track customers’ online behaviour and deliver personalised mail within 48 hours to nudge people into making a purchase.

Tyre giant Continental has been testing the technology. Its resellers were becoming frustrated by too many lapsed customers so the brand’s business optimisation manager Jeff Book decided to run specific, personalised campaigns. Relevant deals were offered based on historic transactional data and the store customers usually visited.

Programmatic direct mail re-engaged lapsed customers and boosted sales of tyre checks, wheel alignment, servicing and MOTs. One retailer saw a 20% increase in MOT bookings within 12 days thanks to the targeted mail reminders.

“This technology has enabled us to completely re-invent the way we engage with our end customers through direct mail,” says Book. “It is important we can help our smaller distributors, and the conversion rates and increased sales revenues have been impressive.”

One brand seeing benefits from more traditional direct mail is Thames Water, which is using the channel to convey complex behavioural change messages to customers.

Senior marketing manager Patricia Lavender worked with agency 23red to create the brand’s ‘Bin It – Don’t Block It’ campaign. The aim was to stop pipes being blocked by fat, oil and grease. Nearly 600,000 mailers were sent up to three times to 225,000 homes to provide advice and give people a free container to collect fat.

“Providing advice and the container shows that direct mail can still be relevant, engaging and memorable as well as heightening awareness of an important issue,” says Lavender. “We had 69% spontaneous recall of people seeing or hearing of the campaign through direct mail.”

Thames Water says 90% of recipients said the mail made them think the company was educating people, and 87% said receiving it made them consider how they dispose of fat, oil and grease. More than 80% had or said they would use the fat trap.

“Direct mail complements and reinforces out of home and digital messages within customers’ homes where that ‘bad’ behaviour takes place,” says Lavender. “For geographic targeting it provides the most accurate approach and can deliver something tangible which other forms of media cannot.”

The renewed interest in direct mail is obviously welcomed by Royal Mail, and MarketReach managing director Jonathan Harman is particularly optimistic.

“We are benefiting from a reappraisal of the media mix and a need for more transparency in marketing and advertising,” he says. “We are putting new standards in place for how mail works and have good incentives for mail users.”

He says innovations such as programmatic direct mail are busting the myth that mail is slow, while brands are getting a better understanding of consumer attitudes to direct mail.

“Marketers have more knowledge of how people value well-crafted mail containing relevant information,” he says. “Mail underpins a multi-media campaign and brands should always look at the price per impression because mail is passed on.”