Datamine - Case study

Spokesperson: Jason Satherley,
Direct Marketing Sales Specialist

"Poor addressing can affect customer perceptions of your brand and impact poorly on customer satisfaction levels. Good quality addressing is an industry-wide concern that needs to be addressed if the direct marketing industry wishes to grow."

"Maintaining a high level of address quality is something Datamine strongly recommends to its clients.

"Overall, New Zealand address quality is poor compared to world standards, with the wide-ranging effects of poor data addressing often invisible to marketers whose primary focus is the production of collateral or marketing-related materials. The addressing component of a campaign is often only reviewed as an afterthought at the conclusion of a campaign in response to high rates of returned mail.

"Take the following example. Say a catalogue company mails a winter catalogue to 50,000 customers, estimating that 2,500 will be returned as ‘no address’ or as being incorrectly addressed. Based on a $1 production cost, the company can estimate its loss as $2,500.

"That's not so bad and many customers budget for this type of wastage. But say the campaign had a response rate of 10 per cent, which means out of the 2,500 items of returned mail, 250 customers would have made a purchase? It doesn't stop there: what if the average purchase was $50? The lost sales would then add up to $12,500.

"All of a sudden, the costs associated with up-front data cleansing don’t seem so significant.

"Poor addressing can effect customer perception of your brand and impact poorly on customer satisfaction levels. Good quality addressing is an industry-wide concern that needs to be addressed if the direct marketing industry wishes to grow.

"In the end, it is all about the customer and their experience. We as consumers are happy if the right offer at the right time is delivered to our letterbox. We don't know what we might be missing if it doesn't get there?"

Jason Satherley
Direct Marketing Sales Specialist
Datamine

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