While the issue of spam continues to be a concern, new rules controlling direct marketing emails were introduced under the Privacy and Electronic Communications Directive 2002. These regulations ensure that marketers can only target people who have expressed an interest in receiving information via this medium.
Much has been written in recent months on email marketing: the legalities of this form of communication and the associated benefits have been well covered in the marketing press. However, as yet, no one has documented which sectors of the population email marketing is actually reaching.
Analysis of the records contained within CACI's recently launched email address product, eAppend, reveals those consumers who are most likely to opt-in, and the likely success rates of such a campaign:
In excess of 40% of people on the eAppend database open marketing-related emails. This is higher than the most recent industry figures published by DoubleClick, which show an average open rate of 38.2% for the first quarter of 2004.
One thing we can be sure of is that customer marketing is more responsive than contacting "cold" prospects. This is backed up by our research, which shows that nearly 30% of eAppend customers who open their emails actually opt-in, with only 4% opting-out.
Although people aged between 18 and 54 show a slightly higher propensity to opt-in, it is encouraging that 11% of eAppend records belong to those in the 55 to 64 age bracket, with a further 13% aged 65 and above. This clearly shows that email is not just the preserve of the young, as many have believed in the past.
Analysis has shown that a higher number of men than women prefer to communicate by email. Marketers should bear in mind that email marketing is less effective in reaching women who stay at home, and therefore may not be the most appropriate tool for reaching this market.
Interestingly, people who own a house are significantly more likely to agree to receive email communications (72%) than those in rented or council accommodation. This information is particularly valuable to finance firms who may wish to target customers with details of competitive mortgage rates.
Financial services firms will be interested to hear our research shows that more than a fifth of customers have mortgage protection, and almost 12% have started a child savings plan. Almost 8% of customers have also recently taken out a loan in order to buy a new car.
Utilities companies should take note that eAppend record holders are discerning customers. Twenty-two per cent have recently changed gas suppliers. A further 18% have found a new electricity provider and 12% have chosen a new telephone company. This suggests that email marketing may be particularly effective in promoting new offers within this sector.
Reflecting the nation's passion, 17% of those on the eAppend database have an interest in football. Over 8% like to spend time on the golf course and almost 10% can be regularly found in a bingo hall.
A few years ago, Customer Relationship Marketing was the phrase on everyone's lips, but many have been disillusioned by the reality. I would question whether CRM has really died, or whether we just haven't been clever enough in its use.
Email marketing is cheap, quick and easy to personalise, thereby offering the opportunity to provide customers with a genuinely individual experience. Recognising that consumers are not a homogenous group can not fail to improve the success rates of future marketing campaigns.
Email marketing is still a relatively new communication tool, and it is likely that the demographic profile of those who opt-in will change quite significantly over the next few years. However, it is hoped that this research will offer a useful insight into the current market, and provide food for thought to those marketers who may be considering an email campaign.
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