Printing trends

Subscribe to industry newsletters

Press offices

Enquire about a press office
Bizcommunity has over 400 industry contributors and we always welcome further contributions and contributors.
Advertise with us
Advertise & RatesMy Account
Company press officeList company
Recruitment packagesSubmit job ad
Download ratecard

Biz Trends Report 2013

[2013 trends] Targeted direct marketing to come into its own

The year ahead is unlikely to see any fantastical new developments in direct marketing; in fact, it's more likely to be characterised by the maturing of existing technologies and a return to more traditional practices.
[2013 trends] Targeted direct marketing to come into its own
There is no doubt that direct marketing has moved ahead by leaps and bounds over the past five years, driven largely by new capabilities in identifying and targeting a specific segment of the market. This segmentation holds tremendous power for marketers, not only because of the increased effectiveness, but especially because that can be achieved at a lower cost than previously.

Hyperlocal and hyper-targeted

The one expectation, therefore, is that brands are going to give far greater emphasis to hyperlocal and hyper-targeted messaging.

This is an especially powerful tool for retail and FMCG brands as they can target their messages only at consumers who are likely to take up the offer, based on their proximity and driving time to the store. The rapid deployment of specials - for example, on stock reaching the end of its shelf life - is an effective marketing tool that previously would not been possible, or nearly as effective.

The beauty of hyperlocal and hyper-targeted marketing is that people are more open to marketing messages that are relevant to the community in which they live and when conveniently located to home or the office.

More brands will move away from mass-communicated messaging, particularly as budgets are cut in response to the continuing pressure on consumer spending.

And while SMS is a platform that offers a more rapid response to time-sensitive deals and announcements, hyperlocal and hyper-targeted messaging is not restricted to this medium. Ironically, the old-school postal method works as well for these location-targeted campaigns.

Re-emergence of traditional tools

And that is my second prediction for 2013 - the re-emergence of traditional direct marketing tools, such as postal drops.

The main reason for this is that the cost of producing smaller quantity, personalised messaging has fallen dramatically with the introduction of digital printing. Combine this with the insights of consumer behaviour and demographics that are now available, and the much-beloved snail mail suddenly becomes a contender again.

What used to happen in this category of messaging was that mass-market thinking was applied using direct marketing principles. Now, instead of sending out 1 million messages and getting a 1% response, brands can send targeted messages to 100 000 people and get as much as a 30% response.

Propensity modeling

This technique is strengthened by marketers' use of propensity modelling, which determines a target market's propensity for taking up an offer, or being in the market for a purchase. This can be used to great effect for consumers of large ticket items such as cars, who have a tendency to be more amenable when certain mileage and debt repayment thresholds are exceeded.

Knowing this or, for example, that a certain community it predisposed to a competitive brand, marketers can ensure their message is pitched at the right people, at the right level, and at the right time.

The power of a physical mailer, in such instances, is far greater than SMS or email because the message is not limited by space constraints, which can be used to evoke a more positive response from potential customers.

Evolution

Direct marketing has certainly moved from an era of communicating with everyone to knowing who you are speaking to, and why.

This evolution has contributed enormously to the effectiveness of campaigns, and will remain the mainstay of the industry, although I do believe the delivery mechanisms are going to adapt to take advantage of these efficiencies.

For more:
    
 

About Warren Moss

Warren Moss is the founder of Demographica (www.demographica.co.za), South Africa's largest digital direct marketing company. He has a profound understanding of email and direct marketing, sales and entrepreneurship, and how businesses can benefit from these. Warren divides his time between running his company, consulting, teaching, and speaking at events all over South Africa. Contact him on tel +27 (0)11 447 7373, email and follow @warrenmoss on Twitter.
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.

News