Study’s Indirect Finding: Direct Mail Welcome

In an effort to build long-term, profitable customers relationships, companies often engage in multichannel as campaigns, complete with personalized messages set to existing customers through various channels as part of their marketing strategy. However, what if such a strategy drives customers away from future purchases, rather than closer to the company? Is there a level at which additional communication leads to diminishing, or even negative return?

A recent academic study examined the ideal volume, mix, and alignment of telephone, e-mail and direct mail communications between a large auto dealership with a high-volume
service department and its customers.

Select Findings:
The researchers found that there is an ideal level of communication volume that varies across channels and, after that level is exceeded, there is an adverse effect and customers are turned off. This negative response can be exacerbated by the use of multiple channels that are not in line with customer preferences. In addition to these key findings, the study had an indirect finding and a noted eye-opener for its authors.

The researchers were surprised to find that direct mail was such an effective communication method in the overall marketing mix for this auto dealership. The dealership’s customers were accepting of more than twice as much direct mail, compared to phone calls and e-mails, before their spending levels started to decrease.

The ideal levels of communication to spark customer interest in auto services, new products and locations, promotions and sales, were three telephone calls, three to four e-mails and nine to ten direct mailings. The researchers hypothesize that customers view the mail received in their homes as less intrusive than telephone calls or e-mail, for these messages can be viewed at the customers’ own convenience.

In addition to the study highlighted that multichannel communications must be carefully managed on multiple dimensions to avoid generating negative reactions and potentially driving customers away from, rather than closer to a company – a complementary finding shows, as have other studies, such as the USPS House Diary Study, that contrary to the image that direct mail is “junk mail” and is tossed without consideration, households pay attention to the advertising
they receive.

Source: Enough is Enough! The Fine Line in Executing Multichannel Relational Communication,
Andrea Godfrey, Kathleen Seiders & Glenn B. Voss, Journal of Marketing
Volume 75 (July 2011), 94 – 109.

*Please note that we are not representing these as our original toughts. The above article is one in which we wanted to share because of its valuable informaiton.