Thursday 28 September 2017

How Technology Has Changed Direct Marketing

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We’re lucky enough to have been working in direct marketing long enough to witness huge changes in the sector. As technology advances, we constantly look for ways to adapt our practices and make the best possible use of that technology. The biggest catalyst for change in the past few decades has definitely been widespread internet adoption. Since the internet started to be widely available, the technology has continued to improve, to the point where today we have super high internet speeds – accessible through a device we hold in the palm of our hand.

Where Did Direct Marketing Start Out?

The first widely acknowledged example of direct mail marketing took place in 1,000 B.C. in Egypt. A landowner advertised on a piece of papyrus that he was offering a gold reward for the return of one of his slaves who had run away. However, this would not be a viable method of marketing for many years to come, due mostly to low literacy levels before the industrial revolution. Then, during the 19th century, while Britain was in the midst of the industrial revolution, Aaron Montgomery Ward created the first ever mail-order catalogue for his business.

From there direct marketing became all about mail. Companies would spend weeks typing (and later printing) letters to send to consumers. This was a hugely time consuming task, as the letters needed to be typed or printed, placed in envelopes and sent via the postal service, before having to process all the replies that came after.

The First Leap: Telemarketing

The first considerable leap forward came with the proliferation of telephonic communication. This allowed marketers to contact consumers over the phone and speak to them in person. For a time this was the preferred method of communication, with direct mail remaining in use.

The Second Leap: Email

We’ve already said just how much the internet was a gamechanger for the direct marketing industry. The ability that it gave people to connect with one another was revolutionary at the time, even though it was only at its infancy. With everybody going online, suddenly people had both a physical address to send mail to, as well as a digital address to receive email. Email marketing allowed us to reach a wider audience than ever, in only a fraction of the time.

Along with the proliferation of internet connectivity came huge advancements in computer technology. For the first time we were able to start collecting that all-important data that we love so much in the direct marketing sector.

Where We Are: Automation & Multi-Channel Marketing

Today we have the luxury of using various tools to drive our message to our consumer continuously in the most cost effective and targeted manner.  Imagine today a campaign that consists of finding the right target market first. Targeting our market to create awareness through social media and then to drive sales through a combination of SMS, E-mail, the web, Automated Voice Messaging and call centre interaction.

The advantage of this combination of various tools is that customers can then respond using the medium they are most comfortable with. The process can be fully automated to drive the next leg of communication based on client behaviour and finally at CDA we believe that the human touch should never be lost and always an option for our customers, especially when the products one sells is one that is sold and not bought.

Need help getting with the times? Contact CDA for a direct marketing solution that uses the right technology.

Tuesday 5 September 2017

The One Data Analytics Tool We Cannot Live Without

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Data analytics is the cornerstone of a successful direct marketing campaign. Without correctly sourced and profiled data, there’s almost no point in contacting your potential customers. That would be like trying to hit a target in a completely dark room – totally pointless and probably costly.

Quality data is necessary for determining your target market, the most effective method of communication, and the most opportune time to offer them your services, as well as determining their likelihood to sign up for your product and remain enrolled for months to come.

But when you’re working with large amounts of data covering a range of complex metrics, having a robust data analytics tool is an absolute necessity. Some companies use a combination of tools that they may have licensed or bought from other suppliers, and these tools, for the most part, offer users a range of benefits. But at the same time, buying these tools and renewing the licenses for them can be an expensive exercise.

That’s why we developed our own data analytics tool, based on over a decade of collected information, machine cognitive algorithms, and advanced actuarial calculations. We call it the Optimum Dynamic Data Scoring model, or ODDS for short. Based on a unique combination of variables, it allows us to score each customer without infringing on their right to protection of personal information.

What are the ODDS?

ODDS allocates a score to each potential customer, indicating the following:
  • Likelihood of a client purchasing a product (response ratio) 
  • Likelihood of a client paying the first premium 
  • Expected number of months a client would pay premiums 

Most importantly, ODDS enables us to help our clients maximise the data they have already available, and drive the best possible return on investment for each marketing endeavour.

The Optimum Dynamic Data Scoring model has now been tried and tested over a period of 2 years and we are exceptionally excited about the results it has delivered for our insurers and database owners.

But a great data analytics tool can only take you so far. You may be able to get all the relevant information and insights, but unless they are used smartly and effectively, there’s almost no value to the data. That’s why we believe that the best thing to compliment a great data analytics tool is a great team with solid experience.