Targeted Marketing Tops 2005 Tactics A new survey report by Harte-Hanks, Inc. and CSO Insights, Inc., reveals that more than one in five organizations spend more than 45 percent of
their entire marketing budgets on "target marketing," and an additional two in five spend between 15 percent and 45 percent on such activity.
According to the 2005 Executive Report:
Target Marketing Priorities Analysis, nearly three of four companies plan higher investments in database management this year; three in five companies are planning to spend more on e-mail, Web design
and data quality initiatives; and more than one in two on search marketing.
"Database and interactive marketing lead all categories in new marketing investments," said Richard
Hochhauser, president and chief executive officer, Harte-Hanks, Inc. "Web sites and e-mail, in particular, really show strength. Yet struggles with data quality and data management remain pervasive."
According to the respondents:
- 43 percent have a regular or constant program to support personalization and one-to-one marketing
-
33 percent feel they are "good" or "very good" at calculating customer profitability (just 12 percent rate themselves "very good")
- more than a third rate their database
management as "poor" or "very poor"
- 53 percent believe that their own customer data are at least 75 percent accurate
- 40 percent believe that less than half
their prospect data are correct.
- 58 percent have an informal or no process at all for direct marketing planning, while 42 percent do
Among respondents,
Web sites and micro-sites, search optimization and e-mail marketing are described as "mission critical" by 53 percent, 43 percent and 41 percent, respectively. Wireless messaging and blogs still have
not "broken through" - just 7 percent and 5 percent, respectively, rate these interactive media as "mission critical."
Target Marketing Priorities for 2005 |
| 1st Priority | 2nd Priority | 3rd Priority |
Acquire New Customers | 49.9% | 23.0% | 9.8% |
Increase Program Response Rates | 8.1 | 24.2 | 20.4 |
Improve Target Marketing ROI | 14.5 | 11.1
| 22.1 |
Improve Customer Longevity | 11.5 | 16.6 | 18.7 |
Increase Wallet Share | 9.8 | 17.0 | 14.5
|
Reduce Target Marketing Costs | 6.4
| 8.5 | 14.5 |
Source: 2005 Executive Report: Target Market Priorities Analysis, Harte-Hanks |
Data
security and privacy were the two biggest areas of concern cited by marketers. Sixty percent of marketers are very concerned or extremely concerned about data security, and 59% were very or extremely
concerned about ensuring privacy to end users.
For more information, please go here.