We live in a digital world, and technological changes are happening every day. It would be easy to think that many traditional business methods would be losing their relevance and becoming less cost effective, but studies are showing the opposite to be true. A recent study by CMO Council looked at the hidden costs that can be involved in digital marketing. Here, Tepo Consultancy review this study, and consider the implications for UK businesses.
“It’s impossible to ignore the technological revolution, but it’s important not to ignore tried and trusted methods as well”, said Tianan O’Kane, Director of Tepo Consultancy. “When acquiring customers, it’s important to consider their true value, and how to keep them loyal for years to come. In my experience, direct marketing is the most cost effective way of doing this.”
The study looked at a number of statistics relevant to marketing and business. One of their most startling revelations was that digital marketing users spend almost as much keeping customers (45%) as they do acquiring them (55%). This could be because a true, personal bond hasn’t been forged between the consumer and the brand during the acquisition period. It could also be that people who have been influenced by digital marketing initially, will be bombarded by similar digital marketing techniques from rival companies, and could just as easily be influenced by competitors.
Email marketing can be particularly ineffective, particularly if it hasn’t been carefully targeted. Emails that are perceived as spam can have a negative effect, by making a consumer turn against a company rather than being attracted to them. Direct mail, whilst still found obtrusive by some, has a much better response rate, and is seen as more welcome by customers.
“Business who rely solely on direct marketers are storing up hidden costs that they’ll need to spend on customer retention”, said Tianan O’Kane. “That’s why I encourage businesses to work closely with direct marketing companies. We work on a ‘no win, no fee’ basis, so there’s no risk at all involved for new clients. Digital marketing undoubtedly had a place in a brand’s joined up marketing strategy, but it’s important that it isn’t used to the exclusion of traditional and proven forms of marketing.”
Tepo Consultancy creates innovative and bespoke campaigns that make full use of the power of direct marketing, acquiring new customers, and then retaining them, and creating brand awareness.