View more on these topics

Poor response to mail campaigns

The financial services industry is getting below-average response rates for its direct mail campaigns, according to new research from the Direct Mail Information Service.

The phone-based survey covers 806 business-to-business campaigns, such as insurance companies targeting intermediaries, and over 1,000 campaigns involving businesses contacting consumers with marketing material.

It tracks how many people replied to direct mail, how they responded, whether campaigns met response targets and how satisfied clients were with their direct marketing agencies.

Across all industry sectors the average response rate to direct mail campaigns is 9.6 per cent but for financial services business-to-business campaigns it is only 5.4 per cent.

This is much lower than the property sector, with a 10.3 per cent response rate or marketing services, achieving a 12.6 per cent average.

The research says the success of financial services campaigns targeting consumers directly rather than intermediaries varies depending on the product being promoted.

Mortgages achieved the highest number of replies with a response rate of 15.5 per cent. The rate for insurance campaigns is 5.3 per cent, for investment campaigns 4.7 per cent and for personal loans it is 3 per cent.

Despite such differences in the performance of direct mail campaigns, DMIS believes it is a vital part of marketing.

DMIS says campaigns are affected by a number of factors, including the database used, the creativity of marketing material and the timing.

Managing director Jo Howard-Brown says: “The results highlight why direct mail is consistently the fastest growing advertising medium. It can enhance product/service awareness, boost shortand long-term sales and help build loyalty. It delivers a demonstrable return on investment and is an increasingly vital weapon in a client&#39s armoury.”

Recommended

Inter-Alliance reports £2.1m loss

National IFA Inter-Alliance has reported a loss of £2.1m for the six months ending June 30, a sharp fall from a profit of £0.7m in the same period last year.The IFA says the loss, which excludes the cost of integrating recruits from the Lincoln and Pru sales force, is due to substantial investment in its […]

Euroland rate cut of 0.5 per cent

The US Federal Reserve has made a 0.5 per cent cut in interest rates to 3 per cent minutes before the opening of the New York Stock Exchange.The cut, the Fed&#39s eighth this year, had been anticipated by some analysts, and is aimed at securing investor confidence to avoid panic selling.The Bank of England Monetary […]

Wood to run networks in Misys shuffle

Tony Wood is taking over as network director for Countrywide and Kestrel, with Max Wright promoted within the Misys organisation.Wright is taking up a business development role at Misys IFA Services.In his new role, Wood will report to Misys IFA Services chief executive Patrick Gale. He joined Misys in March last year from Zifa, where […]

Bank of England cuts rate to 4.75 per cent

The Bank of England has cut interest rates by 0.25 per cent to 4.75 per cent, following yesterday&#39s 0.5 per cent cuts by the US Federal Reserve and the European Central Bank.The cut was made desite inflation rising 0.4 per cent last month to 2.6 per cent, just above the Government&#39s target rate of 2.5 […]

Nobody expects the Spanish Inquisition

Paul Fidell, Head of Business Development (Investments), writes about one of the primary challenges for those involved in estate planning. He looks at dealing with investment uncertainty in these low growth, low inflation but still volatile investment conditions. Protection of capital, to leave something for beneficiaries, is a fundamental objective of many people’s plans for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment