Study Confirms Personalization is What Consumers Want

Consumers are taking control of in-bound communication channels, unsubscribing to irrelevant e-mail, and defecting from brands that continue to deliver irrelevant content and random mass mailings, according to a new poll from the Chief Marketing Officer (CMO) Council and InfoPrint Solutions Co. While 64 percent of consumers say promotional offers dominate both the e-mail and traditional mail they receive, only 41 percent view these as must-read communications. Of the 91 percent of consumers who opt out or unsubscribe to e-mails, 46 percent are driven to brand defection because the messages are not relevant.

The threat of customer disconnection intensifies as 41 percent of consumers say they would consider ending a brand relationship due to irrelevant promotions, and an additional 22 percent say they would definitely defect. Yet, while marketers continue to weigh the pros and cons of e-mail versus printed postal mail, consumers are more concerned about the level of individualization and understanding of their needs and relationship with the brand.

Key findings of the consumer engagement study highlighted in the report, “Why Relevance Drives Response and Relationships: Using the Power of Precision Marketing to Better Engage Customers,” showed that:

• Nearly three quarters of consumers have received promotions for products they have previously purchased from the company
• 73 percent of consumers would be open to receiving print statements if they were recyclable or part of a sustainability program
• Nine out of 10 consumers open monthly bills delivered via traditional mail, compared to 72 percent who open bills delivered via e-mail
• When given the opportunity to choose, 51 percent of consumers prefer to receive product or service promotions via traditional mail, while 44 percent prefer e-mail

The report noted that consumers are deluged and overloaded with unwanted direct marketing and promotional messages that are blasted out via e-mail, or mass-produced and mailed in vast quantities, ending up choking mail boxes and filling recycling bins. In most cases, recipients ignore—or have become immune to—standardized commercial overtures. And with the advent of the Internet, consumers are seeking product information and affirmation from trusted sources and referral networks online.

“Irrelevant, impersonal communication, be it e-mail or traditional mail, is a waste as it does not engage a receptive recipient,” said Liz Miller, vice president, programs and operations, CMO Council. “It is no surprise consumers are opting out of irrelevant e-mails. However, what is a grave sign for marketers to heed is that customers will disconnect and stop doing business with brands who continue to send messages that demonstrate a lack of intimacy, customer insight and individual understanding.”

Even when marketers have deeper engagements with customers, as with loyalty clubs and rewards programs, they often miss the mark in delivering meaningful messages. Only six percent of consumers felt the promotions received through loyalty clubs were based on preferences or past purchasing behavior. The result of these mixed messages is that marketers are missing the opportunity to drive loyalty and affect purchase intentions. In this regard, 30 percent of consumers stated they are inspired to do business with a company after receiving personalized communication.

“The research shows that staying relevant, valued and connected to customers has become the number one challenge for marketers,” said Sandra Zoratti, vice president, global solutions marketing, InfoPrint. “There is a real need to adopt precision marketing approaches that utilize more tailored and targeted messaging throughout the entire customer life cycle. Continuous data collection, as well as integration and analysis produce customer insights which will enable mass-customization of messaging to recipients and generate improved response, engagement and retention.”

To download the complimentary summary report of the findings and gain access to best practices, visit www.precisionpromotion.org.