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Media Intelligence : 2009 - 2010
For information on your sector go to www.mediabiznet.com.au Accountability through measurement Rob Edwards CEO, ADMA What are the parameters of “Direct Marketing”? Direct Marketing (DM) is the most effective use of all channels to create and build profi table one-to-one relationships between brands and customers. A lot of people view DM as customer acquisition but in fact 90% of DM is businesses dealing with their own customers – customer retention. Most people view it as those who call you at night and try and fl og you something over the telephone or the piece of mail you get that you don’t want but that’s the smallest area in this market. The channels are traditional ones such as mail, out of that came telemarketing then email and now it’s mobile marketing – it’s all those customer interactions; all the channels that organisations use to reach their customers. What are the recent developments in DM? There’s no doubt there’s been a change in the consumer. We conduct a Consumer Insights Study every three years that tracks how consumers feel about direct-to-customer communications. If you ask consumers about their preferred channel of communication or receiving marketing material – about three years ago people preferred mail and email was not so popular but there’s been a signifi cant shift: people are becoming more accepting of the email channel. Now we’ve got the proliferation of hand held devices and mobile marketing so the challenge for marketers is, to ‘mediate the medium’ that’s available to bring about the best solution not only for the business but for the customer. The challenge for marketers is to understand through which channel their customer or the consumer wants to be contacted. Mobile messaging has been increasing recently. One of the issues is intrusiveness – Bluetooth marketing is a sales promotion tool so they’ll send messages out to people within a local Bluetooth area – for example a customer walking past David Jones (receives a message about a DJs offer) they’ll think ‘they know I’m a DJs customer’ – I’m not sure the consumer perception is up with the technology available; there may be a gap between what’s able to be done and what consumers are ready to accept. Has the global economic downturn had an eff ect on DM? Well they say that when things turn down, DM fl ourishes and the reason is that for the most part, it’s accountable. For every message sent out that has a response mechanism attached, the response can be measured. So rather than doing a 30 second television commercial, organisations are looking at spending more time speaking directly with their customers through other means. There’s a traditional shift to what used to be below-the-line media but the reality is that distinction between what is mainstream and below-the-line media is changing dramatically. It’s more like throughthe-line now. When people are putting together their marketing campaigns they make choices around which channel they will use. Obviously they still use mainstream media for brand awareness but if it’s about soliciting responses from people they’ll use various channels. Have you noticed a change in how your members are using DM? We have 500 members and about half of them are what we would call users or advertisers so they’re the major banks, insurance companies and organisations who use those channels to communicate with their customers. The other half are those who actually supply them such as internet service providers, mobile service providers, call centres, contact centres, the data industry. So on the advertiser side, they’re spending more money trying to understand how best to interact with their customers – fi nding the best way that suits the customer without it being too intrusive. A lot of people think of DM as those annoying pieces of paper that get thrown into the recycling bin, or sent to the spam folder. What is ADMA doing to challenge those perceptions of both the client and consumer? The industry itself will change that perception by more targeted and relevant marketing. Businesses now have the tools to be able to get more information on individuals’ behaviour – their wants and their needs – and they should be able to tailor offers that are far more relevant than they’ve been in the past. I believe behaviour, in its own right, over time will actually change the negative perception. Is DM more popular in certain industries? There’s no doubt people who will use DM more often are those that have considerable databases – mostly the fi nancial services sector. But in the hospitality industry it’s becoming very competitive trying to retain customers so many industries that were on the periphery before are now jumping in and trying to build up relationships with the end-users of their products. CONSUMER DIRECT MARKETING PREFERENCES – ORGANISATIONS AND COMPANIES CURRENTLY DEALT WITH – CHANGE FROM 2005-2008 48% 40% Q: What is your preferred method of contact for receiving information about products and services from … 23% 11% 9% 9% 7% 9% 13% 9% y Mail, addressed to you by name Source: Consumer Insights Study, ADMA MEDIA Trends + Strategy p64-65_directMark.indd 65 p64-65_directMark.indd 65 66 3/7/09 12:09:23 PM 3/7/09 12:09:23 PM Email Home Phone By Mail, addressed to the Householder None at all 2005 2008
MT Resource 2010