Business News
IRRELEVANT COMMUNICATIONS CONTRIBUTES TO CUSTOMER DEFECTION AND ALIENATION
Tuesday 01. December 2009 - New Consumer Poll by CMO Council and InfoPrint Highlights Need for More Targeted, Personalized Messaging to Drive Relationship and Response
Consumers are taking control of in-bound communication channels, unsubscribing to irrelevant email, and defecting from brands that continue to deliver uninvited and non-personalized content and random mass mailings, according to a new poll from the Chief Marketing Officer (CMO) Council and InfoPrint Solutions.
While 64 percent of consumers say promotional offers dominate both the email 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 emails, 46 percent are driven to brand defection because the messages are simply not relevant or contextual to their needs.
The threat of customer churn and 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 from the brand. Yet, while marketers continue to weigh the pros and cons of email versus printed postal mail, consumers are much more concerned about the level of individualization and understanding of their needs and relationship with the brand.
“This report echoes our own experiences in UK in that irrelevant messages can damage a company’s brand image,” said ADD COUNTRY SPOKESPERSON. “That’s why more and more marketers are seeing the value in using transaction documents – one of the most trusted communications channels – as an opportunity to introduce relevant, targeted messages.”
Key findings of the consumer engagement study, entitled Getting a View on Whats Delivered to You, showed that:
73 percent of consumers have received promotions for products they have already purchased previously from the company
73 percent of consumers would be open to receiving print statements if mailed materials were recyclable or part of a sustainability program
92 percent of consumers open monthly bills delivered via traditional mail, compared to 72 percent who open bills delivered via email.
When given the opportunity to choose, 51 percent of consumers prefer to receive product or service promotions via traditional mail while 43 percent prefer email.
The CMO Council report noted that consumers today are deluged and overloaded with a plethora of unwanted direct marketing and promotional messages that are blasted out via email, 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 communications, be it email 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 the consumers are opting out of irrelevant emails. 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.”