But a quarter of Marketers still don’t understand the new EU privacy and Electronic Communications Directive
Targeted e-mail marketing has become an integrated part of customer management, according to findings by Experian®, the global information solutions provider, and the Direct Marketing Association (DMA) in the 2003 E-mail Marketing Survey.
This year’s annual survey of DMA members and Experian clients reveals that organisations are increasingly using e-mail marketing as part of a multi-channel marketing strategy to build customer relationships. However, there has been a 24 per cent decline in the use of e-mail for targeting new business opportunities.
The 2003 findings also indicate that organisations are using e-mail for more sophisticated and targeted purposes to maintain customer communications. A total of 89 per cent of respondents confirmed they hold names linked to e-mail addresses, a marked increase from only 39 per cent in 2002. 79 per cent also store postal addresses and 42 per cent transactional information with their e-mail records. More good news is that the response rates for e-mail campaigns are improving, with 19 per cent of customer e-mail campaigns now achieving a response rate of greater than 15 per cent.
Responses to marketing e-mails
The research found that 97 per cent of people within companies are now receiving marketing e-mails, compared to 93 per cent in 2002. These e-mails continue to cover conferences, marketing services and newsletters, with e-mails about hardware or software on the increase.
Of those who receive e-mails, a total of 75 per cent have responded to a message at least once. The majority of responses involve clicking on a link in the e-mail through to a web site (95 per cent), while 47 per cent forward the information to a friend and 39 per cent have purchased a product or service.
New EU Privacy legislation
The study reveals differing opinions within the marketing industry about the introduction of the EU Directive on Privacy and Electronic Communications affecting e-mail marketing. Nearly half (47 per cent) of e-mail marketers say that the legislation will result in more responsive lists, which will enable them to deliver more effective e-mail campaigns. 70 per cent of respondents have already taken steps to ensure they have prior consent to use the e-mail addresses they hold.
However, there is a stark need to better communicate the implications of the Directive as 26 per cent of non e-mail marketers feel confused about what the legislation means. 27 per cent of respondents have concerns about the number of e-mail addresses they will lose, but only three per cent believe the legislation will stop them using e-mail marketing altogether.
The DMA and Experian 2003 E-mail Marketing Survey aimed to measure the changes in e-mail marketing activity in the UK during the last year. Commenting on the research results, Phillip Singh, Head of E-commerce for Experian’s Marketing Services division, said: “E-mail remains an invaluable marketing tool that is best used alongside other methods of communication such as direct mail, advertising and telemarketing. Marketers have realised that e-mail works better in some situations than others and we expect to witness even more sophisticated use of this tool over the next year as e-mail becomes integral to multi-channel marketing strategies.
“The results of this survey highlight the importance of e-mail marketing as part of an integrated DM campaign,” commented Mike Barnes, DMA Director of Marketing and Business Development. “According to the 2002-2003 DMA Census, e-mail marketing is now worth £120 million to the industry and it is important that we use the results of this DMA/Experian survey to continually increase the worth of this sector and build on the success of this constantly evolving marketing tool.”
Use of e-mail
The research reveals that there has been a small increase in the number of companies using e-mail as a marketing tool in 2003; 63 per cent compared with 60 per cent last year. 96 per cent of respondents claim to spend up to 20 per cent of their marketing budgets on e-mail campaigns. However, the results show an overall decline in the number of organisations planning to use e-mail marketing in the future, indicating a consolidation in the way that e-mail is used as part of the total marketing effort.
E-mail marketing continues to be widespread across a range of industry sectors including financial services, agencies, publishing and call centres. In addition to customer communications and new business prospecting, respondents are using e-mail for internal communications (89 per cent), servicing new information requests (59 per cent), account management (51 per cent) and customer newsletters (47 per cent).
79 per cent of respondents said that they found the use of e-mail marketing attractive because of its low cost. Support for e-mail marketing campaigns is growing, with 32 per cent of people saying that reliability is a key factor encouraging them to use e-mail for marketing purposes, up from 25 per cent in 2002.
For further press information, please contact:
Narelle Morrison,
:Hotwire,
Tel: 020 7608 4635
E-mail narelle.morrison@hotwirepr.com
Liz Bastone,
PR Officer,
DMA,
Tel: 020 2791 3315.
E-mail: liz@dma.org.uk
NOTES TO EDITORS:
About the DMA/Experian 2003 E-mail Marketing Survey
Experian and the DMA conducted the research into e-mail marketing in September 2003. The survey was issued to DMA members and Experian’s database, comprising marketing directors and managers and senior management within agencies. Experian ContactMail, a permission-based e-mail marketing service, issued the survey. It was of paramount importance that the individual privacy of respondents was protected throughout the exercise and that the names of individuals were not recorded, revealed or subsequently disclosed in the process.
About Experian
Experian provides strategic support to organisations around the world. It helps its clients target, acquire, manage and develop profitable customer relationships. It does this by combining its advanced decision support and outsourcing services with information on consumers, businesses, motor vehicles and property. Experian works with more than 40,000 clients across diverse industries, including financial services, telecommunications, healthcare, insurance, retail and catalogue, automotive, manufacturing, leisure, utilities, property, e-commerce and government. Millions of consumers rely on Experian's consumer credit services to meet their financial management needs. Experian is a subsidiary of GUS plc and has headquarters in Nottingham, UK, and Costa Mesa, California. It has a 175-year history and unbroken sales growth over the past 23 years. Its 13,000 people support clients in more than sixty countries. Annual sales exceed £1.2 billion.
For more information, visit the company's web site on www.experian.com
The word 'Experian' is a registered trademark in the EU and other countries and is owned by Experian Ltd and/or its associated companies.
About the Direct Marketing Association (UK) Ltd
The DMA UK is the largest trade association in the marketing communications sector, with almost 900 corporate members. The DMA’s mission is to maximise value for members, whilst maintaining and enhancing consumer trust and confidence in the direct marketing industry.
To assist, the DMA administers a portfolio of Preference Services that allow consumers to register their contact details, free of charge, should they choose to reduce the amount of direct marketing approaches they receive via mail, telephone, fax and email.
DMA members benefit from added protection, intelligence and growth, which together we call the Power of Association. Within these three areas, DMA member services include government lobbying, free legal advice, training & development, representation on DMA Councils, networking opportunities, regular updates of current dm issues/legislation, research, use of the DMA logo, promotion of member companies and discounts on a range of dm products/services.
Over £11.85 billion was spent on direct marketing activity in 2002, resulting in over £60 billion worth of sales. This makes direct marketing one of the top ten industries in the UK. For further information please visit http://www.dma.org.uk
For details on the benefits of becoming a DMA member please call 020 7291 3388 to speak to the membership team, email membership@dma.org.uk, or visit http://www.dmamembership.org.uk
