Reconstruct Your Target Market for the Recession

Marketers had better start asking their customers and prospects what advertising medium they prefer. They'll code their lists appropriately and improve their readership--and ultimately, their bottom line.

Many direct marketers are utilizing multiple channels. This trend will continue to grow in the future. Thanks to the Web, there's so much data available, which allows marketers to pinpoint their target audience more effectively and efficiently than ever before.

Not only will customers be asked what advertising medium they prefer, but they'll be asked when they want to receive it, how often they'd like to receive it and even what they want to receive. With all these options, marketers will have to adhere to new regulations and restrictions imposed by the FCC, the FTC and state regulatory agencies. Even if consumers volunteer information, marketers are restricted by the limitations placed upon them by provisions of Do Not Mail. Do Not Call, Do Not E-mail, Do Not Fax and down the road Do Not Text.

Some months ago Microsoft opened their "Retail Experience Center" to test multi-channel technologies with concentration on targeting information to online shopping carts and cell phones. Consumer buying habits will affect social, mobile and cross-channel buying choices.

What this accomplishes for retailers is their ability to cut overhead and control inventory, improve CRM and integrate online shopping versus in-store traffic vs. cell phone messages for product information and confirmation of purchases.

Future marketers will increase their use of personalization. Successful marketers are aware that customers aren't really affected by what a sales person, a direct mail piece, a text message or a Web site tells them. They may like to hear or read it, and it might make them feel good – but it won't necessarily compel them to order. Marketers who have asked questions of their customers or prospects such as wedding dates, ages, number of children, children's name, plus a lot more demographics, can relate to this data in their advertising.

The psychographics, hobbies and interests of their customers and prospects adds to and enlarges the database which can be drawn upon to really get personal. Remember, marketers must get and keep the attention of the prospect for one or two seconds whether it is a print ad, an e-mail message or a piece of mail.

Marketing databases are now so large that advertisers can capture, record and store a huge amount of data. Much of it is customer supplied. Add to this the transaction data, the psychographics, more and more information including ethnic info, religion, political preferences, donation history, auto ownership, boats and airplanes, estate ownership, investment holdings, etc. Personalization is only now getting started. There's unlimited opportunity in the future.

Another element relating to reducing costs in this recession is list comprehensiveness and list hygiene. If you, as a marketer, have analyzed your customer file, in terms of identifying their demographics and psychographics, you are in a position to expand the file. Many list sellers are offering unlimited rental use for one year. Your modeled customer may be compared to the best possible selections that are available from similar lists of buyers. These prospects are related in likes and dislikes plus demographics as is the marketer's file. You'll mail less and e-mail less to a more relational prospect file. Lot's of savings here.

Robert Dunhill is president of Dunhill International List Co., Boca Raton, FL.