Never mind that these are challenging economic times or to put it more bluntly that the economy stinks right now. A new direct marketing is emerging, but the trouble is that no one can be sure what the future will hold in five or 10 years and beyond.
Commercial and nonprofit marketers spent roughly $177 billion on direct marketing in 2008, accounting for more than 52% of U.S. advertising expenditures, according to the Direct Marketing Association. Direct marketing employs about 1.6 million people.
“While direct marketing has evolved drastically over the years and there are challenging times ahead, its measurability and accountability ensure that direct marketing is here to stay,” said in a statement Michelle Tiletnick, DMA research manager.
The DMA has released a “Future of Direct Marketing” report that examines what 35 direct marketing leaders believe about the short-term and long term future of direct marketing.
In coming years, direct marketing and advertising can be expected to become one and the same, with consumers exercising more control over marketers, driving new legislative and self-regulation, according to the report.
Experts advise that marketers spend more time asking customers about their preferences, such as what they want to receive, how often and through which communications channels.
Data sources are shifting, which means direct marketers need to develop multichannel strategies for capturing and capitalizing on the abundance of data from digital channels, including tracking and measuring, with analytical tools and techniques, the report says.
The seeds of coming changes are widespread, as evidenced by announcements coming out of National Retail Federation’s 98th Annual Convention and Expo under way this week in New York.
Accenture and Microsoft Corp. announced they have teamed up in a multichannel retail marketing initiative to promote shopping through emerging social networking and online communities.
Retailers will be able to cut costs and improve customer service with tighter integration between in-store and online shopping, including inventory, order fulfillment, customer relationship management and loyalty programs, according to Microsoft.
Existing technology can be used to synchronize and continuously update online catalogs and inventories with retail store locations, with mobile devices used for reviewing product information online and text messages used to send order confirmations.
Microsoft has opened a 20,000-square-foot “Retail Experience Center” in Redmond, WA, where it’s testing multichannel marketing technologies, with applications such as targeting information to online shopping carts and mobile phones.
Retailers need to adapt to changes in consumer behavior, by providing, social, mobile and cross-channel shopping choices, says Brendan O’Meara, Microsoft’s managing director of worldwide retail industry.
TransactionTree LLC has introduced new paperless receipt technology, which enables retailers to track customer shopping trends and data for direct marketing, by enrolling consumers at the point of purchase to have purchase receipts e-mailed to them.
In other developments, Sprint has introduced new mobile phone technology that allows consumers to forward their e-mail and postal address information to call centers with one click of a button.
Never mind that these are challenging economic times or to put it more bluntly that the economy stinks right now. A new direct marketing is emerging, but the trouble is that no one can be sure what the future will hold in five or 10 years and beyond.
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