How can we leverage the data in our CRM system to improve the ROI of our direct mail campaigns?
Posted Apr 14, 2003
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In today's cost-conscious business climate, marketers and customer service decision makers are increasingly concerned with how to increase customer response and retention rates. Companies spend large amounts of money on CRM solutions and data acquisition but they don't know how to use the information stored in these systems to improve the effectiveness of their direct marketing campaigns. By leveraging the customer information they already have, companies can create personalized, printed direct mail programs that generate higher response rates, greater returns, and stronger customer loyalty, while gaining a significant edge over their competitors. To reach the promised land of one-to-one direct marketing, companies need an end-to-end solution for creating, managing, printing, and distributing personalized direct mail "on demand." Having access to digital printing is just one piece of the solution. A more complete approach includes leveraging personalization technology into a useful direct marketing tool that provides true one-to-one marketing, allowing for both variable text and images in a direct mail piece. New technologies are now available that make it easy for companies to take existing customer information and create truly personalized printed marketing campaigns for one or thousands of individuals, each piece offering a unique message based on the customer's geographic location, purchase history, and personal preferences. These new technologies are designed to help marketers anticipate customers' needs and provide them with the right information at the right time in order to make a sale, thereby improving the ROI of their direct marketing efforts, as well as of their CRM systems. New developments in direct marketing software mean the days of spending weeks coordinating between agencies, printers, list brokers, and mailing houses are over. Through simple Web-based solutions, high-quality, personalized direct marketing campaigns can now be created and executed directly from your desktop, and your pieces will be in the mail in just a matter of days, creating real on-demand results. The impact of personalized, on-demand direct mail on a company's overall direct mail program can be significant. For example, First Horizon, a national home mortgage provider, developed a campaign featuring monthly personalized direct mail that resulted in an approximately 64 percent increase in the value of loans they processed and helped them reach 28 percent more new customers. Direct mail continues to be one of the most valuable methods of direct marketing with a steady growth rate that is expected to reach $56 billion by 2004, according to a Veronis Suhler communications industry forecast. By using information stored in a company's CRM system, marketers can capture valuable customer data to create a customized, personalized message that will increase the overall ROI of their direct mail programs.
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