Direct Mail: Marketing’s Negative Tidal Wave

Direct marketing has become a profligate disaster of epic proportions.

The relatively low cost of direct mail ensures that a campaign can prove profitable even if less than 2% of those targeted actually respond. But while direct agencies celebrate the profits from these tiny minorities they rarely pause to consider the implications of the enormous majority who do not respond. Most consumers have only negative perceptions of direct marketing. Indeed eight out of ten people now believe that unsolicited letters have no relevance to them whatsoever. The traditional mantra of direct agencies the world over: ‘People will always open a letter addressed to them’ has become a fallacy.

The current sad state of affairs contrasts with the bright vision offered to marketers back in the 70s from visionaries like Lester Wunderman. (pictured) Direct marketers were set to revolutionize the world by targeting tightly defined customer segments who were identified as having particular needs and preferences.

A relationship would be built between marketer and consumer over time and the potential to understand customers, provide information, and build brands was enormous.

Direct campaigns rarely achieve these laudable goals. Instead, the true potential of direct marketing has been drowned out by a plethora of non-targeted, non-valued, non-helpful junk designed to instigate a single transaction. Brand managers must now offset the power of direct marketing against the stigma that this unpopular media confers on their brand should they use it.

The Direct Marketing Association (DMA) currently self regulates all direct mail. Its mission statement speaks of “maximizing value for our members, while maintaining and enhancing business and consumers’ trust and confidence in the direct marketing industry”. With 21 billion items in circulation yearly in the UK alone, it would seem that representing both the hunter and the hunted has proven to be impossible.

Under pressure from the government, the DMA has agreed to better promote the opt-out service it offers to households that wish to take themselves off mailing lists. The service had previously lacked sufficient support from the industry. One possible reason for this rare case of reticence from direct marketers can be found in the US. In 2003 the US government launched a service to enable households to opt out of telemarketing calls.

So far 40+ million numbers have been registered. Another big number. And what of direct marketing’s negative impact on the environment? That’s another blog post.

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