DMNews published a story about trends in marketing campaigns that stress customers’ ideas of “value”.
US consumer spending grew at the fastest rate in three years during the first quarter of 2010, according to figures from the Commerce Department. Overall spending grew 3.6%, with spending on durable goods increasing 11.3%. For nondurable goods, the increase was 3.9% and for services, 2.4%. These figures suggest the worst of the recession may be over, but it doesn’t paint a clear picture of what the consumer will do next.
The power of putting money back in consumers’ wallets explains the growing popularity of coupons. NCH Marketing Services reports that coupon distribution rose 11% in 2009, while redemption rates have increased consistently over the past six quarters. According to a recent Nielsen report, direct mail is the second-fastest growing redemption method for coupons, posting a 69% jump in 2009.
Price promotions aren’t the only way to a consumer’s heart. Sprint does a good job providing value and relevance to consumers in its communications, including direct mail. Over the past year, the company has shifted its focus away from acquisition toward more loyalty- and customer retention-oriented efforts. There is so much more information about your customer base, so it is a lot easier to get relevant and meaningful. In February 2009, Sprint introduced a complimentary loyalty program for wireless customers and is promoting it through direct mail and e-mail. A mailed welcome package details the benefits of the program.
Determining your customer base’s definition of “value” will drive the right direct mail strategy.
The economy has made things tough for everyone but, in the end, mailing successfully means being able to tap into what’s going on in consumers’ minds. As marketers, we are responsible for giving customers what they want, and at this particular time, that means value.
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