Marketers’ targeting and personalisation efforts are finally reaching a
majority of consumers. Research, conducted by CDMS in April 2005, indicates
that over half of top UK companies are now able to translate sophisticated
database analysis into highly personalised and segmented campaigns, where
creative, message, and enclosures are varied for different types of recipient.
The survey, conducted amongst UK top 1000 company marketers, assesses the
performance of various industries in terms of performing ‘end-to-end’
marketing. The primary findings of this research are as follows:
· While the importance of getting targeted CRM and marketing
communications out of the door has achieved mainstream awareness, there is
still considerable potential for improved return on investment from CRM systems
· Telecoms comes in surprise first place (60%), probably under
pressure from the combination of high corporate debt and fierce market
competition, plus the increasing richness of new information services
available over mobile phones
· Banking and Credit Card has slipped into second place (59%), a
matter of concern given the sector’s need to improve marketing delivery
sharpened by the sector’s massive investment in CRM systems
· Mail Order – the pioneer of many modern direct marketing
techniques – has recovered (53%) from its low in 2003 (44%), possibly the
result of major retailers’ involvement in the remote shopping industry
· Less than half of retailers can deliver end-to-end marketing and
CRM, possibly showing a polarity in the sector between mass advertisers and
database marketers
· Hotels and Travel companies score lowest of the sectors studied
(43%), a warning flag for the two sectors that are both feeling the
economic squeeze, but the hotel trade is improving at the fastest rate of
any industry studied.
Ian Hubbard, CDMS Director of Data Services, comments
“Huge sophistication is possible at the database level. With the
availability of a wide variety of data on consumers – both internal
customer information and commercially available attributes - CRM systems
are able to interrogate and analyse the customer and enquirer database in
order to define these different groups of customers, usually known as
‘segments’. In theory, different offers, or packages, can then be
constructed to meet each group’s needs or interests.
However, until recently, the process of delivering segmented messages to
different customer groups had proved a bottleneck. This is no longer the
case. There is now no excuse for failing to reach the customer with
sophisticated targeted marketing messages; campaign management tools allow
email, mail and phone to be integrated, individual documents can be easily
generated by the call centre agent in reply to an enquiry or customer
service call, variable printing is now economic and mailing enclosures can
be automatically individualised.”