Transcript Presentation to the Diploma Ceremony University of Parma

Presentation to the Diploma Ceremony
University of Parma, 4 December 2003
by
Alastair Tempest
Director General
Federation of European Direct & Interactive Marketing
This presentation will cover:
 Trends in direct marketing, customer
relations & integrated marketing
 Statistics on DM
 Some futurology
 The new e-communications revolution
 Beware regulations!
 Things to think about
Where is Direct Marketing going?
• DM aimed to acquire and to sell
• It has developed to become interactive –
embracing retention, CRM, brand building, as
well as information, acquisition, offer ….. etc.
• But, as always, it is long term.
“DM is dead – long live DM!”
Integrated, Multi-channel Marketing
• Move from selling/offer to:
- retention techniques, and
- brand building
Requires new skills to build brands through DM
The Customer Journey
Targeting
Acquisition
Advocacy
Conversion
Retain
Activate
Cross Sell
Upsell
Multi-channel –
Following the Customer Journey
• Using the media mix intelligently to reach
the customer; attract; hold; “cuddle, love
and protect”.
• Through use of media and marketing
disciplines – DM, advertising, sales
promotions, loyalty schemes, sponsorship,
viral campaigns, games, etc.
• The secret is in the mix
R&I
Call to
Action



PRESS



IN STORE


 
Activity
Media
TV Advertising
BROCHURES
DIRECT
MARKETING
RADIO
OUTDOOR/
CINEMA
INTERNET
EMAIL
Brand/
Product
Awareness
 
  
  



 
 

Source: harvestdigital@
Purchase Handover


After
sales
Crosssell
/upsell




  



Followup




  
European DM Spend in Euro million
50,000
40,000
30,000
20,000
10,000
0
1994
1995
1996
1997
Direct Marketing
Teleservices
1998
1999
2000
Direct Mail
Internet/Online
Source: FEDMA 2002 Survey on Direct and Interactive Marketing Activities in Europe
2001
Growth of DM Expenditure in Europe
(Euro millions)
36,153
31,725
24,933
10,000
21,651
20,000
27,947
44,519
30,000
39,769
40,000
46,334
50,000
0
1994
1995
1996
1997
1998
1999
2000
2001
Source: FEDMA 2002 Survey on Direct & Interactive Marketing Activities
Current State of Direct Mail
Development
United
States
Central
Asia
South
America
Middle
East
Rest of
North
America
SubSahara
Western
Europe
Pacific Rim
TIME
Embryonic
Take Off
Growth
Source: Study done for the UPU by Arthur D. Little
Highly
Developed
Potential DM Estimates by Region 2005
Region
North America
Western Europe
Pacific Rim
Middle East and
Asian Subcontinent
South America
E. Europe/Central.Asia
Sub-Sahara
TOTAL
Employment
Expenditures
Sales
(Millions)
(Billions)
(Billions)
22.0
21.6
19.0
$161.5
$158.1
$138.8
$1,261.0
$1,234.4
$1,084.2
3.8
2.9
2.4
$27.5
$21.1
$17.8
$215.0
$165.2
$139.4
0.9
72.6
$6.4
$531.2
$50.1
$4,149.3
Source: Study done for the UPU by Arthur D. Little
Paper Power will continue…
•
•
•
•
•
•
•
•
Colour brochures – large
Catalogues
When signature (still) needed
When there’s a gift in the package
People who hate technology
People who are poor
People who like paper
People who want privacy
… but…
Source: Trends Analysis by Dr. Patrick Dixon
Internet
Ultimate
Direct
Marketing
Tool
•Banner adverts in response to web activity
•Instant testing of slogans
•Total data on clicks/sales
Source: Trends Analysis by Dr. Patrick Dixon
E-Mail Marketing Trends Study
44%
56%
Percentage of companies using personalized email for
outbound marketing
Not using personalized email for outbound marketing
Source: Arial Software
E-Mail Marketing Trends Study
12%
12%
76%
Percentage of companies planning to increase volume of
outbound email
Percentage of companies planning to decrease volume of
outbound email
Percentage of companies planning to keep outbound
email marketing the same
Source: Arial Software
The Future is Video
How will I use 2 megabits per second?
• Book download:
0.25 secs
• 20 page report:
0.01 secs
• 20,000 emails:
120 secs
• 2 hour Videolink:
7200 secs
Source: Trends Analysis by Dr. Patrick Dixon
Digital TV – Total Response
 Every household in UK by 2007
 Web/TV becomes one
 Interactive personal adverts
 Advertising becomes infotainment
 Client knowledge is everything
Source: Trends Analysis by Dr. Patrick Dixon
E-Commerce, “Spam and
Cookies”
• E-Commerce Directive (2000) being implemented.
• EC in major spam debate.
• Electronic Communications & data privacy directive
adopted 2002.
• “Soft opt-in” for all electronic marketing
communications (e-mail, SMS, etc.).
• Opt-out if the data was collected “in the context of a
sale of a product or a service”. Does this mean that
a sale must have been completed?
• Warnings and opt-out for cookies.
Main Government Affairs
Issues 2003
• Data Protection
• Marketing and Commercial
Communications, Distance Selling
and Consumer Credit
• Postal Services
• E-Commerce
• Self-Regulation
What’s FEDMA’s role in EU
• EU Legislation proposed by the bureaucrats
(The Commission). FEDMA uses its contacts to
influence the drafting.
• EU proposals go to the European Parliament –
FEDMA lobbies the EP constantly.
• EU proposals also go to the Member States
(Council of Ministers) – FEDMA co-ordinates the
national lobbying by the national DMAs.
• Finally, we help with advice and provide a
network for the national implementation of the
EU laws.
FEDMA’s Code
In June we completed 7 years of negotiations with
the national data protection authorities (DPAs) and
EC on a general code*
We will now start negotiations on annexes
covering specific issues (on- line DM, phone
marketing, etc.)
This is what’s called “co-regulation”. We
hope it will reduce the national differences in DP
rules.
* Copies available on request or on our website (www.fedma.org)
Thought for the day:
In marketing everything has its own values
and differences:
- Products differ
- Producers/brands differ
- Customers differ
- Media/communications differ
- Economics change
“Change is the only constant factor!”
Issues we need to look at
 Research: we need more generic research on DM
media. There’s a major lack of good research
(e.g. even on mail).
 Promotion: we need more promotion of DM as a
discipline (are we not becoming “marketing”?).
 Education: we need more education – how can
we expect young stars to shine without education
(there are fewer professors of DM in Europe than in
Illinois!)
 Inform: Consumers also need to be assured, their
trust and confidence gained – and kept!  Best
practices, etc.
Thank you for listening!
Every Success in your future &
don’t forget….
We are your voice in Brussels help us to protect your interests!
FEDERATION OF EUROPEAN DIRECT MARKETING
(FEDMA)
439 Avenue de Tervuren
B-1150 Brussels - Belgium
Tel. +32 2 779 42 68 - Fax + 32 2 779 42 69
http://www.fedma.org
[email protected]