Magazine article Marketing

Directwatch

Magazine article Marketing

Directwatch

Article excerpt

Customer loyalty direct mail is rather like teenage, sex: everyone's talking about it, there's a lot of fumbling around in the dark, but in reality there's not much going on.

I don't believe customer loyalty as a concept really exists. Offer someone a better product, price or distribution channel and they will usually switch suppliers without a thought -- a trend bound to increase as the internet breeds millions of impatient, disloyal surfers and shoppers.

The facts certainly support this case: 88% of financial and 64% of non-financial mailings try to woo customers away from their current suppliers, and most customer mailings try to cross-sell with just 10% seeking just to inform or retain. Only retail has significantly more customer than acquisition mailings (due mainly to loyalty clubs, such as Tesco Clubcard, although Asda recently withdrew its scheme), but in many areas, 90% of activity is acquisition.

Mailing customers' regularly is certainly worth doing, as research proves that not doing so is the single biggest reasons for lost business. And some loyalty schemes, such as Lakeland's, are sophisticated and well, established.

Yet in many cases, inertia plays as much a part as loyalty-witness Barclaycard's high market share compared with cheaper cards -- and in all cases if the product, price or service is uncompetitive, no loyalty programme could retain customers.

Jeremy Ridgway is associate director of AC Nielsen MMS

            A weekly analysis of the direct marketing field in
              association with Customer loyalty directmail --
                         April 1999 to March 2000
                            Number of                % of mailing
                       creative executions             volumes
Market area                Acquisition     Customers Acquisition  Customers
Financial                     8876              2639      88         12
Cards                         1621               359      95          5
Investments                     97                94      73         27
ISAs and savings               358               325      71         29
Life and pensions             1455               166      89         11
Mortgages                      211                35      90         10
Motor/home insurance          1436               145      94          6
Personal loans                1357               704      78         22
Other financial               2341               811      82         18
Non-financial                 9637              7428      64         36
Automotive                    1222               179      87         13
FMCG                           524               256      86         14
Gardening/household           1005               518      57         43
Health and beauty              803               477      63         37
Holiday/travel/leisure        1586               660      75         25
Mail order                    2047              3559      47         53
Publications/music            2048               896      83         17
Retail                         402               883      31         69
Utilities/telecoms             748               829      59         41
Other                          642               476      79         21
ACNielsen MMS monitors direct mail activity and spend using a panel
of 10,000 people profiled and weighted to be representative of the
UK population. … 
Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.