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What to consider when evaluating direct marketing for your Business
In the last two or three years, the use of direct marketing has increased by almost 20%. Much of this growth in use has been driven by the growing importance of Internet in direct marketing.
Nearly three-quarters of companies UK's largest marketing for direct use as a marketing communication tool. These larger businesses also spend a greater proportion of their marketing budget on direct marketing for most businesses.
Probably about two thirds of direct marketing takes place in business to business or B2B market and third direct marketing aimed at consumers.
What budget should allow direct sales?
Research by the direct marketing industry shows that smaller companies tend to spend 0.5-1% of its turnover in direct marketing. So if the number business is £ 500,000, you would usually expect to allocate between £ 2,500 and £ 5,000 for direct marketing activities.
The other way to decide what budget should be allocated to direct marketing is as a proportion of their overall marketing spend. Most smaller companies spend up to 25% of its budget marketing direct marketing, and large companies often spend a much higher proportion – up to half of its budget.
What Direct marketing tools I use?
Direct marketing tool is the most common direct mail – sending promotional messages to persons named in the postal system. Direct mail accounts for about a quarter of the total amount of UK companies spend on direct marketing.
The next most popular direct marketing tool is the online Internet advertising primarily through the use of pay per click advertising and banner adverts.Other direct marketing tools are used quite often shown the magazine ads designed to generate a direct response, drops door to homes of consumers, separate inserts in magazines and newspapers, and field marketing.
Telemarketing has declined in popularity due to the increase in the number of records with the Telephone Preference Service and Corporate Telephone Service Preference.
The new emerging direct marketing methods include email marketing, which is to overcome initial concerns about legality of their use by the launch of new sources of double opt in email marketing lists. It also grows as a tool for mobile marketing niche is using the SMS messages to interact with consumers on their mobile phones.
What direct marketing tools are most effective?
Studies Recent sales generated by direct marketing show that almost half of sales generated by online sales sites on the Internet and about 10% of sales correspondence generated and the type of home shopping direct marketing activities. The remaining sales are generated by direct marketing tools such as telemarketing and field marketing.
What types of direct response marketing I can expect?
Direct mail is by far the largest direct marketing tool popular This represents around a quarter of all activity of DM. As for response rates of direct mail campaigns generally accepted that you can expect that the typical response rates of 1-5% of your mail.
About the Author
Steve Sellwood is from www.selectabase.co.uk, a UK provider of b2b and b2c business and consumer lists and databases for use in direct marketing. Selectabase also provides a range of data cleansing services for your existing customer database, including free Easycheck data cleansing software.
B2B marketing in a digital world