Latest research by database and loyalty marketing specialist GI Insight reveals that just under half of UK consumers are driven to visit a company website by an item of direct mail. Despite the growth of email and proliferation of other digital channels, the research shows that online traffic is largely driven by direct mail, with 47% of UK consumers saying that ‘more often than not’ they are prompted to check out a website by something they have received in the post.

Just over a third (34%) of respondents declare that most of the direct marketing they receive, notice and take action on comes through the post, and 33% say they are more responsive to email-only communications – leaving another third who are not driven solely by marketing activity across a single channel, but are more likely to take action if they receive a combination of post and email communications.

The continuing importance of direct mail in a multi-channel era was also highlighted by the finding that more than half of UK consumers (52%) declare that they receive most of the promotions and special offers they redeem in-store or online though the post. And 43% of respondents also say that direct mail items they keep around at home act as reminders to visit the sender’s website or shop when they have the time to do so.

Andy Wood, managing director of GI Insight, comments: “These findings clearly demonstrate that direct mail is still an extremely powerful tool, even in the digital age, and plays a pivotal role in any business’ efforts to contact consumers – despite increasing use of email and regardless of the channel that consumers choose to actually purchase through.”

Additional findings of report include:

• Surprisingly, 53% of digitally savvy 18 to 24-year-olds say they most often go to check out a website because of something they have received in the post – while fewer than half of all other consumers do so

• Over a third of consumers – 35% – say that if they receive a notice through the post that is backed by a subsequent email, they are more likely to take action

• Men are more likely than women to take action because they have received an email reminder as a follow-up to an item of direct mail they were sent – 37% versus 32%

• Close to a third of consumers – 34% – say they regularly receive at least two catalogues containing products they buy, whether in-store or online, with a higher proportion of men getting them than women

• Women are more likely than men to visit a website because of something that they have received through the post – 49% compared to 44%

Wood notes: “The report highlights that the UK customer journey from marketing communication to in-store or website purchase is anything but linear. There may be a number of messages that influence the consumer’s behaviour. Evidently, one of the real drivers of many purchases is the reminder – whether it is a piece of post set aside, or an email sent to reinforce a mailer. To ensure that these reminders are pertinent and part of an organic strategy, all dialogue with the customer must be informed by data and analysis.

“Only by embracing full customer insight and responding aptly to customer behaviour with relevant messages and offers can companies communicate more effectively and personally with individual consumers. By using data and analysis to better understand how customers are making their purchasing decisions, firms can find the most engaging mix of channels for each customer and gain a decisive edge on competitors.”

The role of direct mail today

Effectiveness of different channel combinations

About GI Insight
GI Insight specialises in database marketing and loyalty schemes, having created and managed more retail loyalty programmes than anyone else in the UK. The Leicester-based company offers a full range of database marketing services including consultancy, database design/build/host, data capture, analysis, segmentation, profiling, campaign execution and measurement, available as a whole or on a ‘pick and mix’ basis. The analysis and interpretation of your sales and customer data enables you to influence customer behaviour. This knowledge helps you to reliably increase profitability by:

• Getting more new customers (acquisition)
• Getting existing customers to:
o Spend more often
o Spend more per transaction
• Reducing Customer Attrition (retention)

For more information, please visit www.gi-solutionsgroup.com

A new report from customer insight and database marketing specialist Transactis has revealed that if customers see that a company is using their data to provide good products, relevant communications and efficient service, then they are more likely to trust that firm to hold their data and continue using it to ensure their satisfaction.

 In an age when consumers really have to take a leap of faith and trust companies with their data if they want to make transactions over the internet, most need to feel comfortable that those companies are handling their details responsibly. In order to determine how consumers feel about the care and use of their personal data by the companies they deal with, Transactis surveyed over 2,000 people from across the UK.

 Nearly 90% say they assume that a company is looking after their personal data carefully and intelligently if they are receiving a good service and the customer communications are sensible and relevant. And, more than 80% are happy to hand over further personal data if they see that it is being used to provide relevant perks such as special offers, discounts and loyalty bonuses.

 The vast majority of consumers – more than 92% – believe the companies that have the most satisfied customers are the ones doing the best job of looking after their personal details and using them to add value.

 However, only about one fifth of consumers see any of the firms they buy from using their personal data to make attractive offers and deliver good customer service.

 If companies do show that they are not using data effectively then they risk losing the trust of their customers. The Transactis report found that around 78% of UK consumers begin to doubt the ability of a firm to look after their personal information if the company continually asks for personal details when they have already provided them.

 Peter Thompson, Transactis’ commercial director, comments:  “Data security and the proper handling of personal information is not something most consumers think about, or are particularly concerned about, until there is a problem. In other words, consumers assume that their data is being handled in a careful and intelligent way if they receive good service and sensible communications from a company. But their confidence in a firm’s ability to look after their data can disappear completely if the wrong order arrives, or a delivery goes to the wrong place, or they start to receive unexpected and badly targeted marketing communications – or, in the worst-case scenario, they find that it has been carelessly handled, resulting in fraud.

 “The research demonstrates that customer data has to be used to inform and shape every aspect of a company’s business – from product development to marketing communications to the processing of orders.”

About Transactis

Transactis creates insight from customer transactions and enables clients to act and communicate at an individual level. Using its unique data resources, specialist knowledge and innovative technology, Transactis delivers products and services that allow its clients to make better, faster and more informed decisions to generate greater efficiencies, profit and an enhanced experience for their customers. Honours at the 2009 Data Strategy Awards and Retail Week Technology Awards are the latest in a series of industry accolades for helping clients to maximise performance and value from their customer management investment.

For more information, visit www.transactis.co.uk

 New research from customer insight specialist GI Insight reveals that UK consumers take a truly multi-channel approach to shopping for non-supermarket goods, using a range of touch points for browsing and purchasing. The study indicated that the vast majority of consumers prefer to research goods and services online before going to the high street to actually make their purchases.

 The GI Insight survey of 2,000 consumers from around the UK showed that 72% of consumers prefer to browse and research their purchases online, while only 19% of shoppers prefer to vet their potential purchases in-store. The study also revealed that almost equal proportions of consumers state a preference for making their non-supermarket purchases on the internet and in a store – 46% online and 47% on the high street. In addition, the figures indicate a niche of consumers still prefer to do their browsing and buying via print catalogue – 5% and 3% respectively.

 The findings show that men prefer to browse and buy online – with 50% purchasing on the internet compared to 42% of women, and 74% browsing on the web compared to 69% of women. Women show a greater preference for shopping on the high street than men, with 52% preferring to purchase in-store compared to 41% of men, and 22% browsing in store versus 17% of men.

 Older consumers show a marked inclination for buying in-store with 62% of respondents in the 55 to 64 age group stating they prefer to buy in a shop and only 33% giving online as their preference – but their browsing habits were more in line with the average, as 69% say they prefer to do their research online.

 Andy Wood, managing director of GI Insight, comments: “These figures clearly indicate that UK consumers see shopping as a multi-channel activity and process.

 “The most obvious trend evident in the findings is that consumers often look for and research products online – doing price comparisons and checking product reviews – before going to the high street to buy in-store. But the reverse can also be true and undoubtedly a smaller proportion of shoppers go to the high street to look, feel and try out – or try on – their prospective purchases before going home to buy online.”

 While the findings indicate that a core of consumers expect firms to be accessible both online and on the high street – and, for some, via catalogue as well – the vast majority will still buy from a brand that does not offer one of the major channels for purchasing. Only 28% say they would not purchase from a firm that failed to offer online shopping while just 23% would refuse to buy from a brand without a high street presence – and merely 11% demand that a company have a catalogue.

 Consumers with the highest household incomes are most wedded to high street brands – 53% of those in the £100,000-£149,000 household income range and 44% of those in the £150,000-plus bracket say they would only buy from a firm with high street presence, compared with just over 20% in lower income groups.

 A significant proportion of consumers, however, do expect businesses to offer a range of options for getting in direct contact with the company – with 39% saying they would switch to a competitor if a firm they deal with did not offer choice in this area, and more than 48% saying this would be the case with a company they had not bought from before.

 Wood notes: “The results show a large majority don’t mind if a brand is only available over one channel for purchasing – underlining the fact that most consumers are flexible enough to switch channels where necessary. But when it comes to getting in touch with a company for general information, taking up an offer, help, servicing, problems, complaints and other forms of communication, a sizable proportion of consumers do want a choice of channel for getting in touch with that firm.”

 He adds: “Brands can’t view their businesses in silos – as stand-alone web or bricks-and-mortar operations with separate customers – because that is not how consumers view them. For consumers, a brand is the same over the internet as it is in its mail-order catalogues as it is on the high street as it is over the phone. And when it comes to customer service, they expect a firm to be accessible through their preferred touch point, whether that is email, web form, phone, post, or face-to-face.

 “More than ever, businesses operating across channels need to understand their customers’ shopping habits and preferences. How a customer will respond to a company and through which channel is very murky once you aggregate data to the top level. The only way to deal with it is to track each consumer with data and analysis and respond accordingly.”

About GI Insight

GI Insight specialises in database marketing and loyalty schemes, having created and managed more retail loyalty programmes than anyone else in the UK. The Leicester-based company offers a full range of database marketing services including consultancy, database design/build/host, data capture, analysis, segmentation, profiling, campaign execution and measurement, available as a whole or on a ‘pick and mix’ basis. The analysis and interpretation of your sales and customer data enables you to influence customer behaviour. This knowledge helps you to reliably increase profitability by: 

•   Getting more new customers (acquisition)
•   Getting existing customers to (retention):
  •    Spend more often
  •    Spend more per transaction

For more information, please visit www.gi-solutionsgroup.com

Last year saw a turning point in its organisation. The organisers stepped up their game in terms of thought leadership, and this year are offering up to 80 sessions and keynotes from leading industry organisations like Google, Chartered Institute of Marketing and YouTube. This was also helped by the move in 2008 from the smaller Olympia venue to a larger presence at Earls Court. All this has transformed the show into a valuable industry leading event at a time when it would have been easy for the organisers to sit on their laurels being the only DM show around.

Thought leadership, analysis and industry insight has clearly become the focus, drawing in the visitors and exhibitors. And yet looking at the TFM press room, the exhibitor publicity is seriously lacking in effective thought leadership content.  The usual, mundane, “We’re going to be at TFM, this is what we do, please come and visit our stand” is the rule rather than the exception.  Snoozzz. Why not generate original research or publicise your client successes to help you stand out and draw interested punters in?

Luckily my colleague Hugh Filman will be visiting the show.  If you want advice on how to create an effective trade show PR strategy, that is more than a bland press release, flag him down – he’ll be more than happy to help!

If we keep the analysis of the marketing industry’s health focused on traditional silos, then we will learn nothing.  What does the category of direct marketing now mean?  Is a DM campaign that drives web traffic categorised as direct marketing, or online?  How do we compartmentalise an online campaign that is designed to pull people into an event?

The task is not an easy one.  The various traditional marketing techniques are being combined in many interesting and productive ways.  Few of which fit neatly into Bellwether categories.  Does that mean that Bellwether’s measurement is redundant?  No.  But the barometer of our industry needs to morph with the times, at least with some covering notes about these imaginative media combinations.

In truth, marketing and sales are the recognisable big categories that are coming together.  Indeed, a PR campaign now may be the principal driver of a sales initiative.  Too long have silos of technique determined how we are measured.  And this does not help professional buyers understand how they can really be benefiting from our services.