Are direct marketers better than marketers?

Not about spray-and-pray

Unlike marketing, direct marketing is not about spray-and-pray, and its analytics come right in the beginning, Mdluli said, adding that direct marketing it is not about talking only to 2 million Black Diamonds, but the whole section of the working population once the irritation factor is removed.

The way defenders of direct marketing poured arguments after arguments, the impression that was created, was that direct marketers are simply better than marketers who drop ads in newspapers, radio and TV, and pray that someone responds - a process they cannot even control.

Marketers are said not to always have control of their customers' data, which some believe lies at the hands of data analysts, something that gives direct marketers a slight advantage as they know who they are talking to.

Onerous amount of work

"Marketers are scared of direct marketers because the amount of work we put in is onerous," Michelle Perrow, Lesoba Difference strategic director, said.

Debi Loftie-Eaton, MD of Wunderman SA, said, "The days of brands making promises are gone; you now need to understand how to create a conversation and engage in a dialogue with the consumer. And if your brand is honest and respectful, it won't be difficult to control the response you will get from that process."

However, grapes can get sour if the number of consumers skyrockets, further complicating the process of properly handling the database.

More info needs more investment

Andrew Ambrogioni, CEO of Action Ambro's, said direct marketing is an extremely labour-intensive process and more information will need more investment. "You might come to the point when direct marketing does not work, especially when you have so much data. Look at banks, some of them have about 11 million customers."

Howard Fox, MD of the Gordon Institute of Business Science (GIBS), argued that direct marketing is an extensive tool because it is costly to send a direct intervention to one customer. However, he said it is better than placing an ad, which someone might not even see or read because of time constraints.

Nevertheless, Perrow said, "If you are a big company, you don't have to start straight by direct marketing. Do what they call value segmentation and take one segment, define it and use it to start the process. And sometimes you don't have to invest millions in this process."

Process becomes complicated

But, as technology develops, helping thieves and criminals to up their game by stealing people's personal information, the process becomes complicated when an organisation is not careful enough in handling consumers' personal data.

Mdluli said his organisation is being pushed hard by the authorities to protect people's data. He said, "Direct marketing can take a wrong turn when it comes to privacy problem. There is so much stolen data out there. We have identified 14 laws that affect direct marketing, and we are working hard to educate the industry. Once you know them all, direct marketing become much easier for you.

"We have also identified 2.5 million people who are currently listed in the Credit Bureau with a debt of just R300 or less. Imagine the contribution they will make to the market if we can bring back those people into the mainstream economy. That is massive!"