The Direct Marketing Association’s Fall 2002 Quarterly Business Review found that 60 percent of members reported revenue and billings through the third quarter of 2002 were below previous projections. Nineteen percent of respondents said results were “significantly worse” than projections, while 41 percent said results were “somewhat worse.” Elsewhere, 17 percent said they were on target while 18 percent fared “somewhat better” than they had expected. Direct marketers identified sagging consumer confidence as the most pressing concern, as well as postage rates and reform and global turmoil.
When asked where their dollars will go in the fourth quarter of 2002, 48 percent of DMA members said they would spend more on e-mail, with 40 percent on new-customer prospecting, and 35 percent on new-product development. Respondents also said that direct mail, teleservices, and customer relationship management will stay stagnant or drop in the fourth quarter.
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