Newsletter - December 2008

Traditional Direct Mail vs Online Marketing – Which is Best?
By Sultan Ali, Account Manager, Matrix-Action™

The pace of technological change means consumers can socialise, network, find information, and make purchases at their convenience. They are also in total control over the information they want to receive which has created a challenge for the 21st century Marketer to get their message read.

This new 'savvy’ consumer has created a unique challenge for businesses to develop successful marketing campaigns that target the right audience, in terms of the firm’s customer acquisition and retention strategy. Internet marketing has opened up new communication channels with the target audience but using it exclusively is not the answer to an overall successful marketing campaign. In a report published by the Direct Marketing Association (DMA, 2007) it reveals that the number of marketing emails increased by 50 per cent during the last quarter to 1.6 billion while direct mail fell two per cent to 1.2 billion. Richard Gibson, chairman of the Email Marketing Council Benchmarking Hub at the DMA, said “The continued growth of email marketing reiterates its importance as an effective marketing channel – for both retaining existing customers and generating new customer relationships.”

The possibilities surrounding the opportunities with online marketing do not mean that direct marketing is dead, far from it. The tools used by the ‘i-Pod generation’ are not used regularly by every consumer. Print's history of success can not be forgotten. Current research and statistics show that direct mail marketing remains a highly effective marketing tool. According to the DMA, direct marketing medium is used by most Marketers.

This is further emphasised by The Chartered Institute of Marketing (CIM, 2008) who have highlighted the potential benefits direct marketing techniques for small and medium enterprises (SMEs). It noted that direct marketing is particularly effective for SMEs as they have the distinct advantage of "knowing their customers better".

While many within the Marketing industry are predicting a shift towards online marketing, there is a large body of evidence to suggest that traditional direct mail still plays a very prominent role in marketing campaigns. Which is Best? This ultimately depends on your firms marketing strategy in terms of sustainability, customer satisfaction and overall stakeholder value. We believe it is about implementing the strategy to target your desired audience. Choosing the right communication and the right delivery method are vital to a successful campaign.