Looking for a way to crack the Chinese market? You can do it online or by phone. But don’t waste your time on direct mail.
“It’s almost a channel of last resort,” said Lisa Watson, chairman of the Direct Marketing Association of Singapore.
Watson blamed this on poor data quality, lack of personalization and targeting capabilities and a shortage in general skills.
Moreover, “There’s no direct mail culture,” she said during a session at DMA08 in Las Vegas. “Consumers don’t check their mailboxes daily It’s not really theirs—it’s something the government sends stuff to.”
Telemarketing is actually “more reasonable,” from a cost perspective, she said.
“If it’s not the right target, you can hang up and pay for only a short call,” she said.
Case in point: Watson received a call in Singapore from a telemarketer). The first question was: “Hello, do you speak Chinese?” They hung up when she said no.
“This is the cost control version of telemarketing, she said.
Other fast-growing channels include the Web, e-mail, mobile phones and television.
“Direct TV shopping will become strong in China,” Watson added.
But challenges remain—like payment. “Credit cards are not widespread,” Watson said. “You can send money through post, but you lose the edge.”
One publisher has found a new way.
“If you subscribe to the publication, you can pay monthly and have it deducted from your prepaid mobile phone card,” Watson added.
Companies give away phone cards as an employee benefit, she explained.
Watson offered some advice for companies marketing in Asia.
“The days where you could preach are long gone,” she said. “We’ve seen advances in the area of giving the customer a voice.”
Sometimes consumers take the initiative.
Case in point: Team buying by Chinese consumers who “gang up on retailers.”
Last June, 500 shoppers who had connected online gathered outside an electronic superstore. They demanded discounts and got them—from 10% to 30%.
