over there european trends in direct marketing and customer management rosemary smith and jenny...
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Over there
European trends in direct marketing and customer
management
Rosemary Smith and Jenny Moseley
Macro trends
Last month WPP boss Sir Martin Sorrell said direct marketing and digital could provide one third of the company’s earnings in the next five to ten years. "The two critical strategic opportunities for our clients, media owners and ourselves ... could be glibly described as China and the internet."
Macro trends: Online growth
Macro trends: Online growth
Daily internet users in selected European countries
Proportion who use the internet, the world wide web or email for personal use every day
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
De
nm
ark
No
rwa
y
Sw
ed
en
Sw
itze
rla
nd
Au
str
ia
Fin
lan
d
Be
lgiu
m
Lu
xe
mb
ou
rg
UK
Ge
rma
ny
Sp
ain
Gre
ece
2003 2005
Source: European Social Survey/nVisionBase: 2,000 per country aged 15+
Macro trends: Online growth
UK Online Advertising Expenditure
0
200
400
600
800
1000
1200
1400
1600
2000 2001 2002 2003 2004 2005
Source: AA, DMA Research Centre, 2006£ millions
Macro trends: Changing Mobile v landline balance
China already has more mobile phone users than the entire population of the United States….the number of mobile phone users in China is expected to top 440 million this year. That's a third of the Chinese population.
UK direct marketing expenditure on text messaging
0
500
1000
1500
2000
2500
3000
2001 2002 2003 2004 2005 2006
SMS MMS
Source: Mobile Data Association. DMA Research Centre, 2006
£millions
15%
2%5%9%
5%
4%
2%
13%
2%
2%
5%
6%
9%
23%
Direct Mail
Telemarketing
Database Marketing
Contract Magazines
Door-to-door
Inserts
Press Display (national)
Magazines Display
Regional Display
TV
Radio
Outdoor/Transport
Total New Media
Field Marketing
Source: DMA Research Centre, 2006
Total UK Direct Marketing Expenditure 2005
Macro trends:Postal service developments
EU Letter Post Market revenue 54 million Euros(2004)
Pricing in proportion
Macro trends: major supplier consolidation
Macro trends: Privacy
Changing challenges?
Customer churn Multi channel access “I want it now” customer
requirements New mobile generation Information overload Data savvy/careful consumers
Winning ways? Loyalty programmes to manage churn Multi channel delivery 24/7 customer service via outsourcing Instant messaging to the mobile
jockeys Better analysis and data management
to prevent overload Permission based marketing
Consumer attitudes to email: Europe
Young more positive about interactive communications
0%
5%
10%
15%
20%
25%
30%
Source: DMA (UK) Participation Media 2005Base: 1065 diary respondents
Strongly agree/agree with the statement “I prefer email or online communications to printed information ”
0 10 20 30 40 50 60 70
I usually w ant to try mostnew products and brands
that I hear about
I am happy to give mypersonal information to
companies of w hich I am acustomer
I tend to buy from a limitednumber of brands and
companies
I am never happy to givemy personal information to
companies
%
2004
2005
Consumers careful about brand relationships
Strongly agree/agree with the following statements
Source: DMA (UK) Participation Media 2005Base:1835 in 2005/ 762 in 2004
0%
5%
10%
15%
20%
25%
30%
35%
40%
Male Female 16-24 25-34 35-44 45-54 55-64 65+
Good service means
personal touch
Source: DMA (UK) Participation Media 2005Base:1835
The demand for 24 hour service, by country
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Ita
ly
GB
Ire
lan
d
Sp
ain
Ne
the
rla
nd
s
Fra
nce
Ge
rma
ny
De
nm
ark
Sw
ed
en
Fin
lan
d
No
rwa
y
Po
lan
d
Cze
ch
Re
p
All
Want shops open until later
Want shops open on Sundays
Want out-of-hours customer care
Source: ‘Changing Lives in Europe’, nVisionBase: 1,000 per country aged 15+, 2005
0% 10% 20% 30% 40% 50% 60% 70%
I don't know where to getinformation and help
I don't know whom to trust
It is difficult to findknowledgeable people to
get information from
It is easier to find out frommy friends and family
Source: DMA (UK) Participation Media 2005
Strongly agree/agree with the following statements
2004Base:762 respondents
Word of mouth increasingly important
New Direct Consumer Types? Hectic are the largest group, often too
busy to respond well to communications but most open to companies. Their most positive response is to TV/radio advertising and printed media
Relaxed are the oldest group and also the most reserved about giving out personal information. More likely to respond to companies they already deal with, they respond best to printed media such as door drops and direct mail
New Direct Consumer Types? Healthy/active are the youngest group and also
the most responsive to direct communications. This group responds particularly well to new forms such as emails and mobile messaging.
Mainly women and mature families, Organised are the second most responsive group to direct communications although they are also less trusting of companies.
Balanced consumers are also older/retired but predominantly men. They are particularly responsive to direct mail, door drops and inserts.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Ease of access
Speed of response
Quality of information
Personal touch
Hectic Relaxed Healthy/Active Organised Balanced
Quality of information is equally sought by all, older groups prefer personal touch and speed is crucial for the young
Source: DMA (UK) Participation Media 2005Base:1835 respondents
0% 2% 4% 6% 8% 10% 12% 14%
Local Services – taxis, fast food, window cleaners, etc.
Financial – Investment
Government - central & local
Automotive
Travel/ Leisure
Major retail goods – e.g. furniture and furnishings, DIY,electronic appliances
Utilities
Cable/ Satellite
Other retail l e.g. music, toys and games, books, magazinesand stationary
Home Shopping
Financial- Insurance
Charity
Financial- Personal Loans
Consumable retail – e.g.food/drink, clothing, pharmaceuticalgoods
Financial- Banks and Building Societies
Financial- Credit Cards
Sectors using direct mail
Source: DMA (UK) Participation Media 2005 Base: 1065 diary respondents1243 direct mail recorded
Proportion as percentage of overall volume of all direct mail received
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Local Services – taxis, fast food, window cleaners, etc.
Government - central & local
Cable/ Satellite
Automotive
Charity
Utilities
Financial- Insurance
Financial – Investment
Financial- Personal Loans
Financial- Banks and Building Societies
Financial- Credit Cards
Major retail goods – e.g. furniture and furnishings, DIY,electronic appliances
Consumable retail – e.g.food/drink, clothing, pharmaceuticalgoods
Travel/ Leisure
Home Shopping
Other retail l e.g. music, toys and games, books, magazinesand stationary
Sectors using email
Source: DMA (UK) Participation Media 2005 Base: 1065 diary respondents320 emails recorded
Proportion as percentage of overall volume of all emails received
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Automotive
Financial – Investment
Government - central & local
Financial- Credit Cards
Financial- Personal Loans
Home Shopping
Local Services – taxis, fast food, window cleaners, etc.
Financial- Insurance
Major retail goods – e.g. furniture and furnishings, DIY,electronic appliances
Financial- Banks and Building Societies
Charity
Travel/ Leisure
Utilities
Consumable retail – e.g.food/drink, clothing, pharmaceuticalgoods
Cable/ Satellite
Other retail l e.g. music, toys and games, books, magazines andstationary
Proportion as percentage of overall volume of mobile messages received
Sectors using mobile messaging
Source: DMA (UK) Participation Media 2005 Base: 1065 diary respondents90 mobile messages recorded
Other DM Trends in the UK
Growth in loyalty/relationship management but is it slowing?
Canny Consumers Compare Cards
Other DM Trends in the UK
Segmentation of grey market
50 is the new 65!
Other DM Trends in the UK
Green issues bubbling under
DMA taking tree-emptive action
Other DM Trends in the UK
Universes shrinking because of privacy concerns
UK Electoral Roll Opt-out
0
5
10
15
20
25
30
2003 2004 2005
% Opt-out
DM Trends in the UK
Significant outsourcing
Outsourcing image problems
Quality is key to satisfaction
India Call Centre Staff In Sex Romp Shocker
Anybody who has ever wondered what Indian call centre operatives get up to between harassing angry British Telecom punters about overdue bills and then selling their personal details to the highest bidder may be surprised to learn that they blow any call-free moments indulging in torrid rumpy-pumpy with fellow headset jockeys. According to a revealing report on India Times call centres are slowly becoming hubs where inter-personal bonding takes place. And it comes as little surprise that many also give vent to their sexual urges in the office space.
Source www.theregister.co.uk
India’s loss, South Africa’s gain….
…research by market analyst Datamonitor reveals the number of call centre agents based in Africa will continue to lead global growth through 2010. South Africa remains a dominant and ever-maturing market for contact centre outsourcing services, especially in the area of value-added functions.
Datamonitor June 2006
Questions?Questions?
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© 2006, no part is to be reproduced without written permission from the authors