|
Issue 48
|
The power of twoPublished Date: March 2010 Smart marketers have realised that successful direct marketing is not a one-way street - the most effective way to reach customers is through integrated campaigns. Here, we gain some insights from industry experts and look at three successful campaigns.
When the internet first hit the mainstream in the mid-1990s, marketers were quick to see its potential as a marketing channel. But while the past decade has certainly seen the rise of the digital medium, it has also seen direct mail go from strength to strength. While this may seem a paradox, the growth in digital has actually played an important role in helping direct mail to thrive. In exploring the best possible way of engaging with consumers, marketers have discovered that using the two channels in tandem is a highly successful and effective way to achieve their campaign objectives. "The possibilities of digital did seem to present a threat to mail and it was certainly tipped that it would eventually spell the death of all forms of print," says Rob Edwards, CEO of the Australian Direct Marketing Association (ADMA). "But as digital has matured, it has become apparent that the anticipated cannibalisation hasn't really occurred. It's not simply a case of 'either / or' for marketers in their planning - digital hasn't supplanted mail, it has been incorporated into marketing strategy as a new but vital and transformative channel. The uptake of digital has also ended up creating new avenues for mail, as many campaigns that start out with mail are fulfilled online." There are a number of other reasons for the ongoing popularity of mail with marketers: as a tangible brand engagement tool, it can be highly targeted and personalised and can appeal to the senses.combining these benefits with digital channels enables marketers to develop integrated campaigns that take consumers on a journey - from their mail box to a website and ultimately to the "pointy end" of the campaign, be it an online store, a retail outlet or another selling environment. Chris Fiteni, director of strategy at Nucleus Digital Strategy, cites the Mazda 3 launch as an example of a dynamic integrated campaign. In this case, existing leads and past Mazda customers were driven to a campaign site by direct mail. Mazda then used email to engage with the audience on an ongoing basis and build hype around the product. When the Mazda 3 eventually hit the market, customers were targeted with both direct mail and email to move them into Mazda dealerships where they could test-drive the product. "It demonstrated a clear understanding of how people research and buy cars and how to use the various marketing tools at hand to move them along the purchase path," he says. However, Fiteni argues that driving customers to a website is not necessarily the ideal call to action for all customers and situations."Not all customers engage with digital channels - the aged and some non-English-speaking people, for example," he says. "Also, not everyone has access to the internet during work hours. Plus, sometimes the most effective way to convert customers is to have them speak to another human being. It comes down to knowing how to communicate best with customers and facilitate their path to purchase." Edwards agrees, arguing there is no prescription for the role of mail and that it all comes down to understanding your audience. "Mail is a versatile medium that can be used equally well for acquisition, fulfilment or retention," he says."The same can't always be said of email, for instance. Although on the surface it's cost-effective, email marketing is heavily regulated by anti-spam legislation that precludes or hobbles many marketing activities. And even when email is permissible, it can be argued that open rates and click-throughs are comparatively poor when stacked up against mail. In the end, it really depends on the existing relationship you have with customers." Malcolm Auld, principal of Malcolm Auld Direct and The Marketing Campus, believes the smartest marketers are integrating mail and digital channels, as well as SMS and the telephone, to engage consumers. "Take the wine clubs, for example," he says."I belong to a good one that each month sends me postcards, a catalogue and a couple of emails. The wine clubs that simply moved from mail to email have really struggled to get their email campaigns to perform as well as their mail campaigns used to - they have to send a lot of messages to get return on investment." "Another technique is to use mail for solicitation and email and SMS for customer service to advise that a product has been despatched or to confirm an appointment." Auld argues that marketers must understand the unique strengths of both direct mail and digital when planning their campaigns in order to get the best results. He warns marketers: don't be dazzled by digital. "The digital age is very exciting for marketers, but remember what Confucius said: 'Men's natures are alike; it's their habits that drive them apart. ' "There is very little new behaviour being demonstrated on the internet; it's just different habits as a result of new technology. We've always gossiped and asked friends and family for opinions; now we're able to see this chatter on social networks. By all means, get involved in the digital channels but not at the complete expense of other proven channels."
Case Studies |
|
|---|---|---|