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With the Internet, the classification of a 'Direct Response' buyer
has been expanded to include individuals who have responded via
Email as well as the Web. The expansion of this definition adds
to the 'traditional core' of direct response sources, which includes
direct response television, phone, single piece direct mail, and
catalog offers. The question is - are the individual types of buyers
interchangeable?
Personally, I think it is interesting to step back and look at
the Direct Marketing industry as a whole. What was a relatively
stable, mature, and almost predictable industry has been literally
rocked by the impact of the Internet as a direct response medium.
Without doubt, it has significantly changed the metrics of direct
marketing, adding additional variables that effect how we plan,
implement, monitor, and evaluate our direct response programs.
During list media plan development, it is not uncommon to stratify
the various lists by their individual sources. One grouping would
consist of the single piece direct mail buyers, in another were
the catalog buyers, followed by phone respondents, TV respondents,
etc. The source of a file, as a singular variable, has a great impact
during the list selection process. If the campaign centered on a
single piece direct mail offer, lists generated from a TV or telephone
source were considered tertiary within the mix, based on falloff
in performance due to their source.
From a media planning standpoint, it makes sense that an individual
that is a regular buyer via direct response television or telephone
solicitations is not necessarily a proven direct mail buyer. However,
adding the Internet into the mix changes the dynamics while also
statistically placing us into an "unknown territory."
Direct response crosses a variety of significantly different mediums.
This cross-over poises an entirely new series of questions for direct
marketers.
For example, which mediums are similar? Does someone that is making
regular purchases via the Web have any synergy with those who are
purchasing via direct response television? What about a possible
synergy between catalog buyers and the Web-based buyers?
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What is the migration capability from one medium to another? What
is the falloff in response? And what medium will you use to communicate
with the buyer in the future (Email or U.S. Postal Service, referencing
the example of a TV generated buyer).
There are a variety of firms that are releasing services to append
Email addresses to postal name and address data. This challenges
us with several additional new questions. Are direct mail respondents
necessarily Email respondents? Are direct mail respondents going
to make purchases via the Web? It is clear that Email is the way
to communicate with prospects and customers, but the real challenge
is if you can initiate a sale via this medium.
These examples will most likely get you thinking about the 'big
picture' of your direct response marketing activities. Are there
any finite answers at this time? Probably not, since most of us
are still in the phase of gathering and analyzing statistics.
If you haven't done so already, your internal data warehouse should
be expanded to track multiple sources for new customers being added
into your system. Source codes should also be tracked at the individual
transaction level. These two elements, specifically, the source
during acquisition and the source from future purchases will help
in the analysis of migration patterns based on source.
For example, you may find that a customer secured via an Email
transmission has become a regular direct mail customer. Or perhaps
that your catalog requestors regularly place orders via the Web.
This level of source coding will also add another component to lifetime
value analysis, helping stratify the value of a customer that is
secured via the various direct response mediums.
Direct response marketing has grown to include Email and the Web
as valid mediums. Savvy marketers will acknowledge these mediums
as stand-alone entities with their own performance values and metrics
that need to be measured and analyzed in the scope of the entire
direct marketing mix. This will help to maximize their potential
and leverage migration to other mediums.
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