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Commercial Credit News
|Credit providers waste £164 million on poor targeting|
|Monday, 08 February 2016|
New research from The Software Bureau reveals that mistargeted direct mail is costing credit card providers £164 million each year, comprising £131 million of unrealised revenue and £33 million of production costs.
Following a six month consultation period the firm has identified five key sources of direct mail wastage within the credit sector, which result in almost one in 12 pieces of direct mail being rendered obsolete:
1. Pack design
2. Postage optimisation
3. Data formatting
4. Data Quality
5. Failure of feedback loop
These five areas result in poor response rates, increased overall campaign costs and ultimately unhappy customers.
The findings by leading data quality and hygiene specialist, The Software Bureau, come in the wake of the organisation’s launch of a new approach to direct mail: Lean DM™ in response to market demand for a way to minimise direct mail wastage.
Lean DM™ is a new workflow package that is run through its award-winning Cygnus data processing suite which systematically addresses each of the five sources of waste and highlights opportunities to both optimise mailings and save money.
For credit companies Lean DM™ saves thousands of pounds for every direct mail campaign sent out, increases direct mail ROI, reduces brand damage associated with mistargeted mail and ultimately enables more responsible direct marketing in line with governmental and ICO dictates.
Comments Martin Rides, MD, The Software Bureau: “£164 million is an eye watering amount of money to burn. Millions of mailings are wasted each year, but because of good response rates, favourable ROI and the perception of hard work and added costs to rectify the problem a blind eye has largely been turned. However, with increasing pressure for responsible marketing and demand for even better ROI wastage can no longer be put to one side. Lean DM™ battles it head on and wins.”
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