Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association
DMA Research Shows Retailers Have Strong Multichannel Skills,
But Need Help Integrating Channels
New York, NY, January 17, 2008 — Although many retail businesses have mastered the art of multichannel direct marketing, quite a few are still apprentices when it comes to cross-channel integration. This is one of the key findings of a report by the Direct Marketing Association (DMA), entitled “Channel Integration and Benchmarks in the Retail Industry.” DMA takes an in-depth look at the multichannel players in the retail industry, helping retailers determine what aids the process of cross-channel integration — and what hinders it.
The 116-page report, divided into four chapters — Respondents’ Profile, Marketing Revenue and ROI, Direct Marketing in the Retail Industry, and Multichannel Integration — explores trends in expenditures and results per channel; integration of sales channels, direct marketing functions, and operations; and the use of personal data for customer segmentation, acquisition, and retention.
Dozens of graphs and charts help marketers benchmark their own company revenue, direct marketing expenditures, and ROI. Additionally, DMA’s new report examines how companies incorporate various direct marketing strategies, the challenges that they face designing and launching campaigns in different channels, and how they manage multichannel integration.
“This DMA report presents
both the popularity of each direct marketing practice, measured in the
percentage of respondents who use it, and its effectiveness, measured in the
strength of ROI,” said
“The report’s conclusion is quite clear,” Steingold continued. “To be successful, retailers need to merge and synchronize all channels in terms of consistent brand message, timing, creativity of promotions, loyalty programs, and fulfillment. To achieve such a level of integration, organizational support and restructuring might be necessary. DMA’s report provides data on the concrete steps that retailers may take toward channel integration, the challenges that they meet, and strategies that they can use to address the challenges.”
The report’s key findings include:
· The absence of a brick-and-mortar store is becoming prevalent among retailers — 41 percent of survey respondents don’t have a physical store.
· The website is the most consistently used direct marketing channel, followed by email and direct mail.
· Among the survey respondents, 66 percent gather customer information from direct mail, and 65 percent gather it from the Internet.
· About 83 percent of respondents segment their customers based on demographics, 77 percent do so based on purchasing frequency, and 76 percent on products purchased.
· Only 33 percent of respondents provide cross-channel order fulfillment.
· Discounts remain the most popular loyalty program, with 80 percent of respondents using them.
· Brick-and-mortar stores (20 percent) and websites (22 percent) produced the highest level of revenue in 2007.
DMA conducted the Internet survey in November 2007, with 101 retailers participating.
The report is available here for $260 for DMA members and $470 for nonmembers.
About Direct Marketing Association (DMA)
The Direct Marketing
Association (www.the-dma.org) is the leading global trade association of
businesses and nonprofit organizations using and supporting multichannel
direct marketing tools and techniques. DMA advocates
standards for responsible marketing, promotes relevance as the key to
reaching consumers with desirable offers, and provides cutting-edge
research, education, and networking opportunities to improve results
throughout the end-to-end direct marketing process.
Founded in 1917, DMA today represents nearly 3,600 companies from dozens of
vertical industries in the
In 2007, marketers —
commercial and nonprofit — spent $173.2 billion on direct marketing in the
Advertising- Bridal Market Advertising Guide
Advertising- Christian Market Advertising Guide
Advertising- Hispanic/Latino Market Advertising Guide
Advertising- Hispanic/Latino Market Advertising Guide- Master Series
Advertising- Home Furnishing and Decor Advertising Guide
Advertising- Home Gardening Advertising Guide
Advertising- Parenting Market Advertising Guide
Advertising-Pet Market Advertising Guide
Advertising- Woman's Market Advertising Guide
Advertising- How to Create Great Small Business Advertising
Call Centers- Telephone Order Taking Services
Catalogs- Catalog and E-commerce Benchmarks
Catalogs- The Catalog Strategists Toolkit
Catalogs- Directory of Mail Order Catalogs
Catalogs- Top 150 Catalogs in the United States
Classified Advertising- How to Market using Classified Ads
Direct Mail- Copywriters and Creative Services Guide
Direct Mail- Directory of Major Direct Mailers
Direct Mail- Inside Direct Mail Newsletter
Direct Marketing- Direct Marketing Seminars and Events
Direct Marketing- Direct Marketing Statistics
Direct Marketing- Direct Marketing Response Rates
Direct Marketing- Direct Marketing Toolkit
Direct Marketing- Industry Contact Directory
Direct Marketing- Direct Marketing Speakers
Fulfillment- Warehouse and Order Fulfillment Centers
Mailing Lists- Direct Mail and E-mail Lists
New Products for Direct Marketers to Sell
Product Marketing- Promote your Product to Catalog and Direct Marketing Companies.
Product Marketing- How to Market a Product for Under $500
Start a Home Based Mail Order Business- Direct Marketing Toolkit
Wholesale and Drop Shipping- Professional Wholesale Resource Guide
Wholesale Search Engine
Direct Marketing and Mail Order Bookstore
National Mail Order Association Home
Direct Marketing Article Archive