Direct mail 'still has a role to play'

While the credit crunch has caused a major number of problems in the financial markets in the past few months, it has also impacted on the day-to-day operations of a number of companies.  The economic downturn is believed to have led many firms to reconsider how much they spend on promoting their business to consumers or clients.

For example, the recent Bellwether report for the third quarter of 2008 found the amount of money spent on direct marketing in the UK has fallen to its lowest level in nine years.  

However, research by Mintel Comperemedia has suggested that firms remain convinced by the ability of direct mail to reach consumers, with the study finding that the amount of money spent on direct mail last year increased by 17 per cent on figures for the previous 12 months.

Head of Retail for thomsonlocal.com, Paul Cross, has supported the findings that the traditional offline format may still be a popular tool for many companies to use, despite the number of new marketing platforms emerging on the web.

According to Mr Cross, the format could prove "highly beneficial" when used in a multi-channel strategy, as people could be "warmed up" with direct mail and then targeted further through telemarketing or other channels.

However, he also urged growing businesses to bear in mind one aspect above all others when using the format - data.

Mr Cross explained: "The key to effective direct mail marketing lies in the ability to select up-to-date, accurate data and using that data to target effectively.

"The marketer that does not do this is simply wasting their time and budget."

In addition, he also advised firms to ensure they pay attention to the creative aspect of their messages, as "attention grabbing" promotions that boast a certain level of clarity are more likely to generate a response from the average consumer.

He said: "Any call to action in a direct mail campaign needs to be simple, clear and easy to do.  With other methods such as telemarketing and email marketing, it is much easier for the respondent to click through or give details over the phone. 

"If they have to spend hours filling out complex forms, they may not be as willing to undertake the action required."

Finally, Mr Cross also suggested that businesses should not underestimate the benefits of testing their campaigns on a small focus group of consumers.  He claimed that such a move can help them to improve both the effectiveness of their promotions and their environmental credentials.

"With marketing budgets coming under constant scrutiny, the marketer that can prove that their communications activity works is in a much stronger position to one that doesn't," he explained.

"Test effectively to see what works best for your business/product and this will ensure you maximize response rates and minimise wastage."

So, while many would claim that the future lies online, there appears to be a reason to continue relying on tried and tested offline mediums, such as direct mail, to seek out business.