The industry certainly is going through some interesting times. The results of our second Permission Marketing Index 2003, released September 1 2003, strengthen the belief that to succeed in the current climate -- and for the reputation of the industry -- direct marketing campaigns must be accurately targeted.
Gone are the days when material was sent, blanket fashion, across an entire company's database, irrespective of relevance. The issues of permission-based marketing and understanding your customer have never been more important.
This industry shake-up will prove to be of major benefit in the long term. Optimistic findings from The Preference Service's research, which received input from more than 500 direct marketers, suggests that UK consumer confidence in direct marketing is likely to increase, thanks to the introduction of compulsory EU email opt-in legislation this October.
Some 85% of direct marketers questioned agree the introduction of the EU regulation will keep consumers happy, while 81% agree it will make direct marketing more credible.
The research, which aimed to discover how direct marketers are using their data and how they feel about current issues within the industry, revealed that the industry believes that the imminent EU legislation will also make direct marketing more targeted.
Hurrah, I hear you cry, no longer will our precious and often costly campaigns be unwanted by their recipients, but what about the implications for database administration and growth?
The majority of respondents think that the regulation will mean databases will be more difficult to clean, and leads more difficult to acquire.
This may be true, but surely if a person has not "opted in" then they should not be on the database (for the purposes of direct marketing) because they do not want to receive mailings from you.
Currently, direct mail remains the medium of choice for half of the respondents, followed by email marketing and then use of the internet. But this may be set to change. The majority of respondents felt the EU's proposals are confusing and will make direct marketers more likely to use permission data through other routes such as mail or SMS.
Unsolicited SMS, however, was deemed the biggest threat to today's DM industry by 58% of respondents. Clearly, the use of this medium should be approached with the utmost consideration for mobile phone users.
This attitude should be extended to every medium. The research revealed that 52% of respondents agree that if the amount of untargeted communication continues at today's rates, SMS, email and traditional lifestyle lists will be legally removed from commercial use, as the Electoral Roll has been, within the next five years.
So, permission-based direct marketing is the only way forward if we want to remain a successful, effective and credible industry. Good news is that evidence of its wide-ranging use is already emerging. Some 73% already use an opt-in option in online communication, with the figure at 60% for off-line communication.
Most also stated that they used some kind of suppression file for their mailings including TBR, GAS and NCOA (although no clear industry standard emerged), essential for a healthy database.
However, when asked if they have any plans to use opt-in data for offline communication, 37% said they have no plans and 25% of respondents are indifferent indicating that the industry is still unsure as to the benefits of opt-in, despite positive opinions elsewhere in the research.
Perhaps the benefits of opt-in and its ease of use are not as well known as they should be. We, as an industry, need to pull together and start singing from the same hymn sheet. This will ensure that the DM industry continues to prosper.
Best practice will mean more effective campaigns, higher response rates and will prevent even tighter regulations (or even removal of certain lists) from being enforced. If we want to continue as a self-regulated industry then let's take the issue seriously and start adopting best practice now.
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