The Future of Direct Marketing: A Post-election, Mid-recession Outlook

The election is over and it’s time to wake up and get on with our lives. Here’s a SportsCenter-like highlight reel: Barack Obama is the president-elect, there are no more debates, a recount is unlikely and yes it’s true, plan to see a lot more of Hilary in the next four years.

For direct marketers this benchmark offers an ideal opportunity to speculate on the state and future of the industry. A changing of the presidential guard and a nation steeped in recession are bound to impact the medium in the coming decade.

Recession re-shmession
In any economic climate one thing remains true: For companies to survive they must still communicate effectively and efficiently with their existing customer base and key identified prospects. This is the core of the direct marketing business. As long as direct marketers do not become oblivious to the ebb and flow of the economy, and concentrate on competitive pricing without a letdown in service – they can sidestep a downturn and even grow comfortably in a recession.

Oval Office musical chairs
Direct marketers aren’t unlike other domestic industries as we attempt to predict how the new administration might affect business. If the president-elect’s first act is to get Congress to pass a massive consumer stimulus package, many direct marketing businesses will benefit as retailers try to attract consumer spend. The recovery of the economy will be directly tied to the perceived success or failure of an Obama first term. Without growing businesses, including robust communication with customers, the economy could flounder along with the president’s chances of reelection.

If it’s any indication, Obama’s use of the Internet during the two-year campaign is a clear sign that he is a world-class direct marketer—or at least his marketing advisors are. As businesses will try to recreate his success in reaching their own constituents and customers, DM could enjoy the trickle down effect of Obama-inspired campaigns.

Digital decade
Two-way communication with consumers has been essential since the Roman Empire built roads for messengers to travel. Delivery methods have changed in the subsequent centuries, but the idea has remained the same. The evolution of technology will dictate the next five or 10 years of the direct marketing industry. Look for all forms of digital marketing to thrive, with message volume via these emerging channels to increase exponentially. Direct mail may go the way of the horse and buggy. Ten years from now universal six day a week mail delivery may be a distant memory.

Help Wanted
The fundamental techniques that marketers must use to garner consumer attention and action never change. But the popularity of delivery channels do. The best way for direct marketers to prepare for the future is to embrace change and always stay ahead of the curve. The data-driven marketing industry will require the best data mining, predictive modeling and creative skills available. The competition for human talent that possess these skills is bound to be fierce. Attracting, fostering and retaining these skills at a top level will ensure your company’s ability to generate big ideas and execute them to perfection.

Steve Cone ([email protected]) is chief marketing officer of Epsilon.