CCR Magazine

You are here  :Home arrow News arrow Credit providers waste £164 million on poor targeting
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Credit providers waste £164 million on poor targeting PDF Print E-mail
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.”
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197