Study: Precision marketing drives customer loyalty

By CRM Management Editors | Nov 24, 2009

Consumers are taking control of in-bound communication channels, unsubscribing to irrelevant email, 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 Company.
 
While 64% of consumers say promotional offers dominate both the email and traditional mail they receive, only 41% view these as must-read communications. Of the 91% of consumers who opt out or unsubscribe to emails, 46% are driven to brand defection because the messages are simply not relevant.
 
The threat of customer churn and disconnection intensifies as 41% of consumers say they would consider ending a brand relationship due to irrelevant promotions, and an additional 22% 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 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% of consumers would be open to receiving print statements if mailed materials were recyclable or part of a sustainability program; nine out of ten consumers open monthly bills delivered via traditional mail, compared to 72% who open bills delivered via email; and when given the opportunity to choose, 51% of consumers prefer to receive product or service promotions via traditional mail, while 44% prefer email.