Where Do DMers Draw the Line?

Direct marketers are always looking for that next great lead-generation tactic that will be a “killer” — something that will be absolutely irresistible to a prospective customer. With the right data, and messages aimed squarely at the right target, you can do anything.

But when do we ask ourselves whether we're pushing the limits of appropriateness with a marketing promotion using client data?

Transpromotional documents — which some analyst firms are calling direct mail's future — beg this question. They're a type of personalized document that combines transaction information (such as somebody's bank statement) with relevant marketing campaigns.

U.S.-based companies already are beginning to use them, such as one major bank/credit card provider that includes coupons on customer statements. One of the best examples I've seen so far is in Osaka, where one of Japan's largest Visa card firms, Sumitomo Mitsui Card Co., recently purchased 24 digital printers and began placing targeted marketing messages on 4.5 million customer statements.

Sumitomo Mitsui is charging marketers for advertisements placed on its customers' credit card statements, as it no longer thinks of statement printing as “cost per page.” Rather, it views each individual billing-statement page as an opportunity to generate revenue.

This might seem to be a marketer's dream come true, but it presents potential privacy issues. Consumers could complain that credit card or bank statements are one of the few remaining bastions of privacy. And while change is good, shouldn't financial documents remain untouched, since customers need to have every assurance that their data is private and safe? With all the transactions being made, it's possible that such personal information could be compromised.

For example, the massive leak of millions of credit cardholders' data at a major Boston-based retailer is still fresh in everyone's minds. While the incident didn't involve a marketing campaign, it's still points up how critical it is to ensure the safety of customer information. And although technology is readily available to prevent data breaches, consumer concerns about ads on credit card statements are absolutely legitimate.

However, when properly executed, transpromotional documents offer DMers real benefits:

• They're less expensive than traditional transaction mail because of the attached revenue from the marketing portion.

• The use of color can draw special attention to payment cycles or other important parts of the statement. By their nature, transpromotional documents help bring color to statements at a reasonable cost.

• These add-on promotions won't contribute to mailbox clutter, something consumers will love.

Perhaps some people might find it handy to see an offer from one of their favorite brands on their monthly statement. And why not? After all, we're a generation of people who seemingly don't think it's unusual to be bombarded with Viagra/Ambien-type advertisements on TV and in our e-mail inbox or have new Nestlé products hawked in shows like “The Apprentice.” Clearly, times have changed, and people are quite accustomed to guerrilla marketing tactics.

It remains to be seen just how U.S.-based transpromotional campaigns will be implemented in the future, or if there will be substantial consumer resistance. My prediction: U.S. marketers will be watching the technology in action in Asia and Europe over the next 18 to 24 months, and if there aren't any major privacy battles, don't be surprised to see full-blown ads on your credit card or bank statement sometime soon.

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TED KULPINSKI (tkulpinski@wilde.com) is vice president/general manager of database and fulfillment services at W.A. Wilde, a Holliston, MA-based DM services provider.