The IDMA announces the launch of Pitch Doctor Express – an online conduit between agencies and their potential new clients
27 January 2012
Pitching is the essential step taken to ensure brand owners select the right partner for their brand, but it can be time-consuming and difficult to know where to start. Pitch Doctor Express, by the IDMA, has been designed to help reduce the time and cost it takes to select the ideal agency and is the first port of call for marketing professionals looking to engage a new agency partner. Find out more here.
Congratulations to Trocaire!
19 January 2012
IDMA is delighted to start the New Year off with some good news. The IDMA Christmas party had a great raffle with gifts provided by many members, including:
•Littlewoods -€250 voucher
•Innovative Print - magnum of champagne
•Neopost - crystal wine glasses
•Trimfold Envelopes - case of Wine
•RRD Donnelly - a bottle of Champagne
•Bill Moss Partnership - data
•The Clarence Hotel - meal for 2 plus wine
•Karl Spain - tickets to gig in 2012
•Data Management Solutions - 3 x toys
•Superquinn – vouchers
•Tesco - 10,000 points
•Dialogue design and artwork
•DCK – print, fulfilment and postage
The IDMA Board agreed to add to the raffle takings so that we could provide a sum of €1000 to one of our charity members. We put all charity names into a hat at the party and Trocaire was drawn as the winner!
Plans for Continued IDMA Expansion during 2012
12 December 2011
At the AGM on 9th December, Kathy Clarke said that 2012 is a year in which the IDMA will continue to further its membership offering through dynamic new initiatives and strengthen the core pillars of education, best practice guidance and business networking. Read the press release.
At the December 9th 2011 AGM: Su Duff, IDMA Member Services Manager; Mick Cummins, IDMA Finance and Company Secretary with 2012 IDMA Board Members: David Connor, eightytwenty/4D, Kathy Clarke, Chairperson, Clarke Consulting Group, Karen Kavanagh, Neopost Ireland, Gary McLoughlin, Dialogue, Dave Furney, Vice Chair, RR Donnelley.
Absent from photograph:Bill Moss, Bill Moss Partnershi, Brian O’Kennedy, Clearstream Solutions, John Canacott, Publicis D
Client Services Committee Review of 2011 by Dave Furney and Kathy Clarke
15 December 2011
Communicative, assertive and ensuring that our members receive full value from their membership throughout 2011, as the Client Services Committee we sought for engagement and involvement from members and for greater visibility of the IDMA.
The drive for more integration with other associations and the cross pollination of member strategies will move again in 2012 as we look to bring members to IDMA from the Chambers of Commerce and other trade associations. Our plan to retain and expand our membership is in full flight. We do need you to be an active part of the IDMA whether that is by spreading IDMA news, attending events, sponsoring initiatives or becoming involved at committee level during 2012 – so why not start considering the options now?
Direct Mail Committee Review of 2011 by Karen Kavanagh, Neopost Ireland
15 December 2011
2011 was an exciting, albeit busy year for the Direct Mail committee. As with all IDMA committees, our aim was to offer our member network access to information and industry success stories across a wide range of topics, provided by experts in their chosen fields. Led by Amie Peters, Head of Direct Mail with An Post, the committee hosted some very successful IDMA events throughout the year and we are currently working on a range of new services to assist our members to do more business, more successfully.
All About Training by Lorcán Ó hÓbáin, The Design, Print and Packaging Skillnet
15 December 2011
The Design, Print and Packaging Skillnet is a training network, like a training co-op, which provides assistance to companies in relation to providing value for money training solutions to business needs. Personalised training programmes can be implemented for IDMA members including 1:1 plans. Courses booked during the month of January will provide an offer of “buy one ticket and get another at 50% discount”. Click here for more details about the IDMA – DPP Skillnet training arrangement.
Lorcán Ó hÓbáin has considerable experience and expertise in relation to the potential impact of training on business performance, based on a combination of 15 years as a professional manager and 10 years as a management consultant, including 6 as Manager of the Design, Print and Packaging Skillnet coupled with the completion of his Ph.D. research into organisational learning in SMEs. Early in 2012 we would like to meet with the person in your company that looks after the training budget and requirements to explain what we can offer for your company. Please ask them to email services@idma.ie or forward their contact details with “2012 Training” in the subject line.
Regulatory Affairs Committee Review of 2011 by Bill Moss, Bill Moss Partnership
15 December 2011
This year witnessed a complete change in the structure of the Regulatory Affairs Committee: we reassembled and sought volunteers who had individual expertise in key areas. This has been quite effective as we feel we have not only kept our members up to date on critical issues, but we have for the first time been able to provide our members with private consultations with our panel on issues directly affecting their business. Read more about Reg Affairs activities here.
No Free Lunch (or beer or wine...) by Hugh Jones, ICS
15 December 2011
At a recent charity event, a sponsor organised a quiz, the prize for which was a crate of six bottles of expensive champagne. Contestants were asked to answer four questions, provide their name, mobile number and e-mail address, and then give the completed forms to a member of staff who came around to each table... the smooth operation had just netted approximately 250 names and personal contact details without a murmur or an objection. And especially since July 1st, 2011, the process of acquiring those addresses was a potential breach of Ireland’s new Direct Marketing legislation. Read on here.
Loyalty Predictions by Leanne Papaioannou, Chilli Pepper Marketing
15 December 2011
Many marketers are trying to get their heads wrapped around customer loyalty at the moment and Leanne's IDMA presentation was about giving the lay of the land before they start planning their strategies for 2012 by keeping these predictions in mind, they will be able to ensure their strategies are relevant to their customer needs and stand out in this very competitive market. Click here for the inside track on 2012.
Understanding Your Customer is Key to Loyalty by Kay Price, Superquinn
15 December 2011
What they want: At the IDMA’s 2011 loyalty and retention conference, Kay Price talked about the strategy that made Superquinn’s customers fall in love with the brand all over again. Kay believes that the secret to any loyalty card programme is understanding your customers, their needs and what they want from your business.
DMA Signs Defra Agreement to Hit Green Targets by Cutting DM Waste by Chris Combemale, DMA
15 December 2011
The Direct Marketing Association UK has signed an historic agreement with the Department of Environment, Food & Rural Affairs (Defra) committing the DM industry to a series of tough green targets to cut physical waste and carbon emissions over the next three years. Get further details here.
Unaddressed Leaflet Drops by Kevin O'Brien
15 December 2011
Advertorial
How Leaflet Company Ireland is helping clients get ahead in this recession: Back in September 2011, we reported that Leaflet Company Ireland had seen a 60% increase in clients including Irish Mosaic Targeting in the planning process of all their leaflet distribution campaigns.
Targeting can mean the difference between the success and failure of any leaflet campaign as the Sales & Marketing Director of Leaflet Company Ireland Kevin O’Brien explains: “I think once our clients understand the capabilities of what Irish Mosaic Targeting can offer, they quickly become aware how accurate targeting increases response rates and reduces wastage; the better they plan their campaign, the more effective their door to door mailing will be. Exclusive to us here at Leaflet Company Ireland, Irish Mosaic Targeting, specifically designed for Ireland, helps our clients identify both who their potential customers are and the unique postal sectors where they are most likely to find them across major towns and cities across Ireland”.
With items being delivered by their managed full-time satellite-tracked distribution teams, their clients are reassured that their leaflets are reaching their targeted addresses. This is fully supported by a checking system offering all their clients a full validation report on completion of delivery of items. O’Brien goes on to say that in his opinion: “It is only those companies in Ireland who can communicate with their desired audience in a cost effective manner who will see out this recession.”
With addressed mailings now on the decline due to the use of e-mail as a way for companies to communicate with their existing customers at a much cheaper cost, it is now evident to many companies that Mosaic Targeting is playing a significant role in helping companies to target new customers in the years to come. Leaflet Company Ireland is the only distribution company to offer Mosaic to help their customer reach their desired audience in the most direct and cost effective way possible. For more information on Irish Mosaic Targeting you can contact Leaflet Company Ireland at www.leafletcompany.ie.
What Impressed Me by Paul Healy
15 December 2011
Residence is four floors of one of the loveliest houses on St Stephen's Green, on its nicest corner. It is, quite simply, one of Dublin's finest town houses. With new management and a new brand, it seemed like a good time to go out and tell people about it.
Congratulations!
10 October 2011
Congratulations to Edel Cribbin, Donor Development & Legacies Manager at the Irish Cancer Society, the winner of a ticket to the Robert Hayes-McCoy Copywriting Workshop on Friday 14th October.
Radio Talk
2 October 2011
Missed The Persuaders radio show on Dublin City FM on Friday September 30th? Click here to hear about latest IDMA happenings.
Brian O'Kennedy presents Fellowship to Bill Moss
2 October 2011
On your behalf it was the IDMA Board's great pleasure this month to present a Fellowship of the IDMA to Mr Bill Moss. Since the formation of this association some 20 years ago, Bill has given tirelessly of his time to help the development of Direct Marketing in Ireland. He has done this quietly and without any hint of self interest. Bill retired from the board last year, but has agreed to continue to help by coordinating the activities of the Regulatory Affairs committee. We all owe Bill a huge debt of gratitude. Thanks Bill!
Brian O’Kennedy, Mick Cummins, Bill Moss, Su Duff, Dave Furney, Barbara Lowe, Amie Peters,Geoff McGrath, Kathy Clarke
August Round Up from DMA UK
2 October 2011
The DMA UK had a busy August, which included the launches of a new how-to guide and two new member services. DMA highlights the problem of identity theft to consumers and marketers. Consumers concerned about identity theft are being let down by companies failing to provide them with sufficient guidance on keeping their personal information safe, DMA research has revealed. Read the full report here.
Aviva Winning Hearts and Minds
2 October 2011
Being in charge of cross sell and retention for an insurance company is no easy task at the best of times, and in the current economic climate, it’s particularly challenging. But, as Cathy Summers from Aviva knows, very often challenges can be turned into success stories. At the IDMA’s recent loyalty and retention conference, Cathy talked about tackling the issues faced by the insurance industry in the wake of the recession. Read more about it here.
What Impressed Me
2 October 2011
Dave Furney from RR Donnelly and IDMA Member Services, recently received a letter - read here to see what impressed him!
60% Increase in Targeted Leaflet Distribution
2 October 2011
Leaflet Company Ireland has been setting the standards, not only on how unaddressed mail should actually be delivered, but also in implementing new ‘targeting systems’ allowing their clients to communicate with customers based on their demographic types, combined with their geographic location. For the full details, please click here.
Networking and the Diaspora by Kingsley Aikins
2 October 2011
What made China the world's greatest manufacturer? What made India a major technology hub? What made Israel the world's number two country for venture capital and what brought peace to Northern Ireland? The answer to all these questions is the same.......networking their diasporas in the United States. Finally, people and governments are recognising that diasporas are big business. In inward investment and trade, philanthropy and remittances, tourism and education and a host of other areas there is growing recognition that diasporas are formidable sources of support for home countries but also that by putting in place smart strategies they can have huge impacts. Read more about this here.
Disclosure of Data by US Firms by Hugh Jones
2 October 2011
The recent headline, “EU upset by Microsoft warning on U.S. access to EU cloud” (July, 2011), reflected the concern at the admission by Microsoft that, as a US-registered company, they would be obliged to allow access to any and all data within their control, in the event that a disclosure request was submitted by the US authorities under the USA Patriot Act. This included data held by the company in the US, but extended to data held by affiliates of Microsoft in other countries. This raised concerns because of the sheer volume of personal data being held by US service providers and commercial organisations across every industry. Read on here.
IDMA Talk at ISB by Vanessa Diaz
2 October 2011
On the 20th of June, Kathy Clarke and Dave Furney gave an interesting and entertaining talk about Direct Marketing in Ireland to a class of American students in the International School of Business (ISB) in Dublin. Read about what they learned here.
Did you receive your copy of our June IDMA Newsletter in the post?
30 June 2011
If not you can get it here.
Business Plus feature on Direct Marketing
Download the full report here from their July 2011 issue:
In an increasingly digitalised world, the landscape for Direct Marketing is changing. The increasing use of social media and the incorporation of technology by consumers into their lifestyles is presenting a number of fresh challenges for the DM sector. According to Brian O’Kennedy, chairman of the Irish Direct Marketing Association: “In future, successful DM will require marketers to use the complementary strengths of print and digital to develop effective strategies. The convergence of digital and offline is a hot topic. Personalised URLs combined with a mail piece garner high response rates. At our recent Loyalty and Retention Conference, a number of companies spoke about how they are using digital to forge a closer relationship with clients.”
The Data Protection Challenge
Hugh Jones held a special one day training programme for IDMA members on 14 July to provide a top level tour of the major DP challenges to companies today. Participants were given a practical manual and quick reference guide for use back at their office. This training day was organised in conjunction with DPPskillsnet following the excellent response to Hugh's talk at the Privacy conference in May.
During Privacy 2011, the recent think-in on Data Protection hosted by Neopost Ireland, several speakers admitted that it was not easy achieving compliance when technology, the media, social networking and society iteself seems to be saying, "Take that data! Use it! Spread it around! Share it! Enhance it! Slice it and dice it!". For further details from the event, please click here.
Privacy 2011 A Success
1 July 2011
Privacy 2011, The Data Protection Seminar hosted by Neopost Ireland and supported by the IDMA was attended by over 70 Business people with a serious interest in Data Protection. For a run down on the events of the day, please click here.
Rethinking Loyalty - IDMA Retention & Loyalty Conference 2011
1 July 2011
Jonnie Cahill, O2, gave an entertaining talk at the recent IDMA Loyalty and Retention Conference with a humourous and anecdotal talk packed full of relevant examples from the world of advertising and marketing, delivering plenty of insights into new ways of looking at loyalty. Read more here.
Please click here to read the Sunday Business Post's article on the conference, Customer is Always Right. (4.5.11)
Article by Dave Furney on client services committee
Click here to read the article.
How to Access Subsidised, Value-for-Money Training for Your Business
1 July 2011
The IDMA, in conjunction with The Design, Print and Packaging Skillnet provides a range of targeted, subsidised training to member companies, which are designed to enhance business performance. Want to learn more? Then click here!
IDMA Environmental Best Practice Guidelines for Direct Marketing
1 July 2011
Environmental awareness and performance is now a cornerstone of responsible corporate best practice. As well as making a positive contribution to the world around us, taking a greener approach makes good business sense as reducing carbon emissions reduces cost. Click here to read IDMA's guidelines.
New alliance between An Post Direct Marketing Awards & DMA International ECHO Awards
24 March 2011
Any An Post DM Award Gold Winner from 2010 or 2011 Awards will be automatically advanced into the semi-finals of the DMA International ECHO Awards!
Ireland is one of only three countries, including Denmark and Germany, to be offered this privileged alliance, due to its international achievements in Direct Marketing.
Details from ECHO:
The final deadline for ECHO entries is May 5th. We do have alliances with organizations whose awards are given out after our entry deadline. What should happen is that if someone is interested in entering ECHO, they should do so by the deadline date. Once the awards for the alliance group are announced, they send us a list of their winners. We will then be sure that these winners are advanced to the semi-finals. Also, please note that any of your 2010 award winners can enter the 2011 ECHO competition if they meet the campaign promotion date criteria – October 1, 2009 – March 31, 2011. So, if you have an award winner in your May 2010 competition, and they enter ECHO, they automatically advance to the semi-finals. However, you must send us a list of the 2010 winners as well.
Entry Deadline: 25th April 2011 — Entry Fee $395
Last Chance Deadline: 5th May 2011 — Entry Fee $450
Enter Online at: www.dma-echo.org/
An Post DM Awards
24 February 2011
An Post DM Awards, supported by IDMA, have been launched. www.anpostdmawards.com.
The Outlook for 2011 is Direct!
23 February 2011
There’s much to be optimistic about for 2011 - IDMA chairman Brian O’Kennedy tells us why. Read here.
2011 IDMA Board: Geoff McGrath, RMG Target; Brian O’Kennedy, IDMA Chairperson and Clearstream Solutions; Amie Peters, An Post; Stephen Stynes, Direct Brand; Su Duff, IDMA Client Services Manager; Mick Cummins, IDMA Secretary; Kathy Clarke, Clarke Consultancy; Dave Furney, RRDonnelly; David Connor, Eighty Twenty.
IDMA Membership Fee
23 February 2011
To help your cash flow, the IDMA is introducing a flexible payment structure. The IDMA membership fee can be paid as before, as a once-off payment of €650 (€350 if you’re a Charity or Start-Up) OR you can now opt to pay monthly (€65 per month, March-December inclusive). For a Standing Order form, please email grainne@idma.ie.
Snow Barrier to Education!
23 February 2011
Marketers didn’t let a little matter of snow blizzards get in the way of their attending the final of An Post’s 2010 Breakfast seminars! ‘What’s brewing in 2011? A Trio of RM Trends’ featured an excellent line-up of speakers and topics including, “Demystifying Relationship Marketing” - Estelle Gorby, Acorn Marketing; “Proof that RM works” - Gary McLoughlin; Dialogue: “What can we look forward to in the future?” - Geoff McGrath, RMG Target; Amie Peters, Head of An Post’s Mail Media Unit advised on “Getting more from RM in 2011”
“Direct to the Point” has put together a summary of these fascinating presentations elsewhere in the newsletter and you can also watch their video presentations on www.anpost.ie/rmtrends.
Demystifying Relationship Marketing
23 February 2011
Focus on the person, not the data, says Estelle Gorby, Acorn Marketing. Read more here.
Proof that RM works
23 February 2011
Increased response and spend rates – plus tips for a successful RM strategy from Gary McLoughlin, Dialogue. See how here.
Predicting the future of RM
23 February 2011
Combine DM with Digital for a winning formula, says Geoff McGrath, RMG Target. Read more.
Getting more from RM in 2011
23 February 2011
Be aware of trends, look at B2B and some facts that explode the myths from Amie Peters, An Post. For details, click here.
Direct Marketing: Maximising the Impact
9 February 2011
Fundraising Ireland invited the IDMA to participate in their seminar at the
Convention Centre. Geoff McGrath, RMG Target, Amie Peters, An Post and Dave
Furney, RR Donnelly Global Document Solutions all contributed.
Pictured, from left, Amie Peters, Dave Furney, John Sutton, Public Communications
Centre, Tim O'Dea, Irish Hospice Foundation/FI and Ed Hurrell, also of Fundraising Ireland.
Postal Liberalisation Bill - Key Points
21 December 2010
For members only, please click here to read the key points.
New Fellows of the Marketing Institute
6 December 2010
Congratulations to IDMA board director, Gerard O'Neill, Amarach and Amie Peters, An Post, who have been made Fellows of the Marketing Institute!
Award-winning Direct Mail Campaigns
26 November 2010
See award-winning direct mail campaigns in the Arts, Entertainment, Leisure, auto, FMCG, Charity, IT, SME, telecoms and Financial Services sectors. Click here to find out more.
Postal Liberalisation Bill published
23 November 2010
The Postal Liberalisation Bill has just been published and the IDMA will be holding a briefing event shortly for members. Please contact grainne@idma.ie with any comments or queries.
http://www.oireachtas.ie/viewdoc.asp?DocID=16691&&CatID=59
Let’s communicate directly! IDMA on LinkedIn and Twitter
17 November 2010
IDMA is now on Twitter (IDMAIreland) and our LinkedIn (Irish Direct Marketing Association IDMA) community is building organically. If you haven’t already hooked up and engaged with us on all topics DM related, please do so!
A Eulogy to the Big Mistake
13 October 2010
In the effort to de-risk marketing investments, a lot of modern advertising has lost that creative spark that sets the ordinary apart from the sublime. Liam Sheehan from An Post says it’s time creatives got creative again – even if it means making the odd cock-up along the way. Read more.
More Opportunities to Upskill with IDMA Training.
5 October 2010
Since September there have been more opportunities than ever for you and your colleagues to take your skills further with IDMA Training. The IDMA has teamed up with Design, Print and Packaging Skillnet to offer a range of training programs designed to help maximise business performance. As a result of this collaboration, IDMA members can now save thousands on a wide range of courses.
Training programmes in the past have included Adobe InDesign, Photoshop and Illustrator, as well as training days in lead generation, sales training, time management and credit control. The new partnership with Design, Print and Packaging Skillnet means that there are now more courses than ever available, including the prestigious MA in Professional Design Practice at DIT – specifically designed to help participants develop world class management and leadership skills. IDMA members can now benefit from a saving of €1850 on this course alone.
For more details on the wide range of one day events coming up, as well as a comprehensive list of all courses now available, visit the Events and Training page at www.idma.ie/events-training. If you see a course that takes your fancy, members can book through the IDMA for a saving of up to 50% on the cost of the course.
And look out for exciting news coming soon for future events and courses aimed at senior sales personnel focussing on vital skills such as presentations, project management and effective pitching.
Know of any courses or training days that would interest our members? Send your suggestions to services@idma.ie.
Big Changes Ahead for Irish Postal Market.
31 August 2010
The next 12 months will see significant changes in the postal sector, both in Ireland and across the EU. Postal markets will be fully open to competition from 1st January 2011 and, during the course of next year, it is expected that postcodes will be introduced in Ireland.
With this in mind, the IDMA is hosting an event that will provide in-depth updates on both of these key events. Postal experts have been invited from all sections of the industry in Ireland and other EU countries to share their expertise on the issues arising from the forthcoming changes.
It is vitally important that anyone involved in the postal industry is up-to-date on developments within the sector, especially in light of the changes on the way. We expect to host the event in October to coincide with the expected publication of the Postal Services Bill. Of course, on the day, there will also be ample opportunity for open discussion and to meet with other members of the industry.
Keep an eye on the events calendar for details. In the meantime click here to find out more about the issues involved.
An Update from the IDMA Digital Sub-Committee.
31 August 2010
About the Digital Sub-Committee
The IDMA Digital Working Group is one of four sub-committees within the IDMA, along with Direct Mail, Regulatory Affairs and Member Services, all working together to promote the activities of the IDMA and provide better services to its members.
The goals of the Digital sub-committee are threefold:
• to provide in-depth knowledge of digital marketing in Ireland
• raise the standard of digital marketing in terms of creativity and ROI
• drive growth levels comparable to other similar markets.
Stephen Stynes, a member of the Digital Sub-Committee and MD at DirectBrand talked about the goals and activities for the group.
‘We are committed to bringing together the brightest minds in national and international digital marketing. The focus of these events will carry right across the marketing spectrum and will be relevant to brand and market leaders, challenger brands and small businesses alike.’
There’s little doubt that the IDMA is in a unique position in Ireland as a professional marketing body, as well as being part of an international network of Direct Marketing Associations. As digital marketing and social media continue to take greater predominance in the marketing world, the digital sub-committee will continue to be a valuable resource for professional marketers in Ireland to better understand the tools available to leverage more engaging communications.
‘There is a huge appetite among marketers in Ireland for hard data regarding what’s possible, what’s working and what’s not, and we are looking to fill that gap,’ said Stephen.
One recent event organised by the group was ‘Social Media: Beyond the Hype,’ a breakfast briefing that took place at the Royal College of Physicians. Speakers included Will McInnes, a leading authority on Social Media who talked about the future of social media. Gareth Irvine from Cybercom shared some secrets of successful social media marketing relevant to the local market and Andrew Maat highlighted useful case studies in affiliate marketing.
The event was a huge success with lots of positive feedback requesting more of the same.
Stephen believes that as the usage and sophistication of digital media grow, the quantity and quality of that data is also increasing, making digital data analysis one of the key growth areas.
In closing he says, ‘Digital data planners and analysts will soon be the new rock stars of the digital marketing world.’
Keep checking back at www.idma.ie for news of new events and initiatives.
The Digital Working Group is currently composed of:
John Canacott, Managing Director, Publicis D.
David O’Connor, MD, EightyTwenty.
Asta Lund, Digital & RM Manger, Diageo.
Malcolm Fogarty, Head of Digital, RMG Target.
Stephen Stynes, Managing Director, DirectBrand.
If you would like to become involved with the IDMA Digital Sub-Committee, send an email to services@idma.ie
For more information on the other IDMA sub- committees click here.
A Simple Way to Protect your Brand and Respect Potential Customers.
Every marketer knows that well targeted mailings can significantly improve business, get a message across effectively and boost revenues. And it’s a fact that many customers enjoy receiving offers and news of products and services that can benefit them via the postal service.
However, it is also well-known that some customers and prospects do not like receiving unsolicited mail. Targeting these groups with mailings can damage the image of your brand and even affect sales. One simple way to protect your brand is to use the IDMA’s Mail Preference Service Database – a regularly updated list of individuals and organisations that have expressed a wish not to receive unsolicited mail. Many businesses have already discovered that the list is a valuable tool when it comes to target your customer base more accurately.
As a member of the IDMA, this database is available to you free of charge. Non-members can access the list for a fee of €750.
Email services@idma.ie for your copy.
Data Protection Commissioner continues actions against unsolicited emails and Texts (SMS)
31 August 2010
In his report on the 2009 data protection issues, Commissioner Billy Hawkes highlighted that 262 of 914 complaints received in 2009 concerned unsolicited electronics communications.
While the total number of complaints was down from the 1031 received in 2008, email and unsolicited texting were still by far the leading causes of complaints about the direct marketing industry. Unsolicited text comprised 28% of all complaints compared to only 2% (17) of complaints relating to DM mailings.
And in a related comment in the report issued in April 2010, Mr Hawkes also expressed his concerns about the exemption still granted to politicians which broadly leaves them outside the jurisdiction of his office unless the complaint directly violates a cardinal data protection principle.
The commissioner successfully prosecuted a number of high profile businesses which can be examined in details on the data protection website (www.dataprotection.ie).
Other data protection issues:
In an announcement on his website Mr Hawkes has drawn attention to two European issues affecting the direct marketing issues:
Opinion 2/2010 http://ec.europa.eu/justice/policies/privacy/index_en.htm offers recommendations on behavioural advertising and Opinion 4/2010 addresses on-line advertising to children.
Because of the dramatic increase in social networking sites the IDMA has decided to produce a further document in its “Guideline” series, specifically addressing advertising to children. This will be available on the IDMA website in Autumn 2010.
Events of 2010
31 August 2010
It’s been an exciting year for the IDMA. In case you missed something, here’s a run-down of this year’s most important events and what’s still to look forward to before the year is out.
During January, the IDMA Digital Working Group hosted an event focussed on how businesses can leverage more value from the growing digital economy. Leading authority, Will Mc Innes shared some valuable insights on the future of social media – a video of his presentation is available on http://www.idma.ie/events-training/video.html
February saw one of IDMA’s popular breakfast briefings in partnership with SAS Ireland. Dr Martha Rogers, named one of the most important business gurus of the past century by Business 2.0 magazine, challenged some common business pre-conceptions when talking about the Peppers and Rogers’ book, ‘Rules to break and Laws to follow’.
The IDMA’s new website went online in April, boasting a new resources section for members, and was followed in May by the ‘rocking’ An Post Direct Marketing Awards at the Mansion House in Dublin.
The newly completed Aviva stadium wowed the speakers at the Loyalty and Retention Marketing Conference in June. In turn, those present were equally impressed by talks from the speakers who included Damian Devaney from O2. IDMA members can access presentations and videos in the IDMA members section www.idma.ie (email services@idma.ie to have your login and password re-issued). The end of June also celebrated the first IDMA Golf Society Outing for 2010.
Their second successful sporting event of the year was held at the Hermitage Golf Club, Lucan, early in August. Our new social sub-committee is hard at work planning further social events before the end of the year.
The first IDMA courses and training days kick off on 21st September with In Design Level 1, swiftly followed by a programme in Business Accounting Skills and Caroline Hickey’s workshop of Debt Collection by Phone the following day. September/October also sees the launch of IDMAtv our interactive online discussion where you can ask questions or share your view on a range of hot issues. Full detail on how to participate will be sent to you later in the month. Talking about discussion groups, don't forget to join our private IDMA Linked In Group and share your thoughts among members there.
Courses continue in October with InDesign Level 2, Excel and Sketch Up. Expect an update in October on the liberalisation of this postal market too.
As always, keep your eyes peeled on www.idma.ie to stay up-to-date with new events and training dates as they are announced.
IDMA Golf Society Event Winners
31 August 2010
Castleknock June 30th
The IDMA Golf Society has had two very enjoyable outings this summer. The first was at Castleknock Golf Club at the end of June. Thanks go out to sponsors, Trimfold Envelopes, Neopost Ireland, Innovative Print Solutions Ltd and, of course, the IDMA Golf Society.
The winners at the first event were, in Class A, Pat Slane from Partners in Print; second place went to Owen Welsh from Iona Security and the third placed runner up was David Kelly from Iasolns.
In Class B, the honours went to Stephen Power of Mailworks, with Dave O'Driscoll of GDK coming in second, closely followed by Peter Kelly of Danwood in third place. The Ladies Prize on the day went to Marian Crowley from Mailworks, who also took the honours for Nearest the Pin. Ronan O’Flynn of Parrans Distributors hit the longest drive of the day.
Hermitage Golf Club Meeting 5th August
A great day was had by all at the Hermitage Golf Club Meeting on 5th August.
Coming first in Class A was Eugene Healy of Trimfold Envelopes, closely followed by Keith Fitzgerald of Exact.
In the Class B event, first place was awarded to Rob Stanley from Neopost Ireland. The runner up was Peter Kelly from Danwood. Rob Stanley also took the accolade for Nearest The Pin, while Eugene Healy secured the prize for longest drive of the day.
Thanks go out to An Post and IDMA for sponsoring the event.
Sponsors are being sought for the next Golf Society outing on Thursday 16th September 2010. A venue and time will be announced soon.
In addition to the above, the IDMA Golf Society versus the UK Direct Marketing Association Ryder Cup Rematch will take place in the UK in early October. This will be a networking event aimed at CEOs and Senior Managers within the industry.
All About Loyalty.
31 August 2010
The recent Loyalty and Retention Conference held at the Aviva Stadium in Dublin was a great success with an inspirational talk from Damian Devaney on O2’s massive sponsorship campaigns. There were plenty of insights from Whitbread’s Gavin Hawthorn also, when he talked about retention strategies in the hotel industry, and David Oliver, formerly of Hertz, was on hand to elaborate on the benefits of structured reward schemes. In addition, Chris Jacobs, an expert on loyalty card schemes, explained how such schemes could pay big dividends for Irish business.
Scroll down on this page for more information from the speakers, or for members' access to the conference resources, click here .
Full photos from the conference can be found on our Facebook page here.
Trócaire Enjoys the Benefits of Membership.
31 August 2010
Trócaire picked up the IDMA early renewal prize of a sumptuous dinner and overnight stay at the luxurious Four Seasons hotel in Dublin recently. It was part of the IDMA’s early 2010 Membership Payment Draw.
Congrats to Natalie O’Toole Trócaire’s Fundraising and Marketing Manager. However, Trocaire were not the only winner for this competition. All members who paid the yearly fee before the end of January can now enjoy the added benefit of sending an extra member of staff to IDMA events at the preferential rate throughout the year.
Su Duff, IDMA Client Services Manager, Natalie O'Toole, Fundraising and Marketing Manager for Trocaire and Ciaran Dempsey from The Four Seasons Hotel Dublin.
Game For a Laugh!
31 August 2010
This year’s IDMA Christmas Party provided an opportunity for IDMA members and guests to get retro with 1980s classic computer game, Pacman.
Ian Soreson, the Creative Director with Direct Brand came out top of the leaders’ board with the day’s high score. He wasn’t the only one celebrating, as all entry fees for the competition went into a charity draw that was won by The Children's Research and Medical Foundation.
Everyone’s a Winner with the IDMA.
31 August 2010
There were more winners at the An Post Direct Marketing Awards held in the Mansion house, as well as at the IDMA Retention and Loyalty Conference at the newly completed Aviva stadium. Guests at both events were presented with an envelope from the IDMA containing a plastic card with a personalised code.
To see if you were winner, all you had to do was check your code against the winning codes published on the IDMA website (www.idma.ie). Jemel Dimalibot of With Taste picked up a brand new iPod Touch, while Niamh Twyford of Cadbury’s Ireland and Padraig Kearney from An Post are now both the very happy owners of a Netbook each.
Congrats to all.
See your Company’s Logo in the Next IDMA E-zine.
31 August 2010
The IDMA e-zine goes out to businesses and organisations all over the country and we’re looking for sponsors for the next edition. In return for your sponsorship, we will feature an advertorial of 250 words on your business, including your logo. What better advertisement for your business?
For more details, contact services@idma.ie.
Findings for Online and Mobile Advertising
5 August 2010
More than half of all online consumers and four in 10 mobile phone users say they are willing to accept advertising in exchange for free or bargain pricing on various services and content, a new global survey by KPMG has found. Its Consumers and Convergence IV report is based on a survey of more than 5,600 consumers in 22 countries (including 300 from the Republic of Ireland and 100 from Northern Ireland. Its findings include: 64pc of people globally would be willing to allow their online usage and personal profile information to be tracked if that would result in lower costs. In Ireland the figure is 52pc.
Globally, 42pc of respondents said they would be willing to receive advertising on their mobiles in return for lower prices or free content – 28% in the Republic of Ireland and 31% in Northern Ireland.
In online viewing, there was a strong preference for advertising messages tailored to individual interests as opposed to generic campaigns. Just over half (52pc) of respondents in the Republic and 61pc of those in the North prefer tailored activity, as opposed to 11pc in the Republic and 12pc in the North preferring generic campaigns.
Anxiety about data privacy is on the increase. 79% of global consumers say they are concerned about unauthorised access of personally identifiable information, but 58pc say they would be willing to allow their online usage and profile information to be tracked if it resulted in lower costs. This figure drops to 52pc amongst Northern Irish respondents and to 46pc in the Republic.
Regarding privacy when using mobile devices, 54pc of global respondents say they are ‘very concerned’ about this issue. In the Republic of Ireland 50pc of respondents expressed a similar concern with 42pc being the equivalent figure in Northern Ireland.
The report also finds that 34pc of consumers globally now say they are comfortable using a mobile phone to handle their online banking and financial transactions - 14pc in 2008.
Some 28pc of global respondents have purchased an item from a retailer via a mobile phone, up from 10pc in 2008. Only 8pc of those in the Republic and 15pc of respondents in the North indicate similar purchasing history.
(source: www.businessandleadership.com/news/article/24494/marketing 25 July 2010 and newsletter from Association of Advertisers in Ireland : AAI )
Videos from Loyalty and Retention Conference
2 July 2010
Don't forget to watch the videos from the Loyalty and Retention Conference in the members section/videos located here.
Sponsorship Strikes a Chord with O2
24 June 2010
Damian Devaney has been responsible for some of the most innovative use of sponsorship in Ireland in recent times with O2’s sponsorship of the Irish rugby team and the O2 stadium. It’s a long way from his humble beginnings at one of Ireland’s oldest businesses, Rathborne Candles, where his total marketing budget amounted to €7,000. At the recent Loyalty and Retention conference organised by the IDMA, he talked about the campaigns that made O2’s sponsorship so effective and how the marketing team managed to cut churn by a massive 31% in the fiercely competitive pre-pay market.
The big challenge: reducing churn.
The mobile phone market in Ireland reached saturation in 2008. However, the market remained extremely competitive. Ease of migrating phone numbers meant that customers were shifting providers more regularly than before. Addressing loyalty was the key to reducing churn. As Damian puts it, “Reducing churn was money in the bank.”
He knew there was a real connection between customer satisfaction and churn. As customer satisfaction increases, churn decreases and vice versa. In 2008, churn was 19% at O2.
“One of the things we looked at,” says Damian, “was addressing the balance between rational and emotional behaviour in our customers.”
It was all about creating value for the customer, but, just as importantly, O2 wanted the customer to become more involved with the brand. Creating value was simple enough: O2 improved tariffs, especially in the area of mobile broadband, and introduced the iPhone. The network was improved, along with customer service.
They looked at the way bad debt was handled too. Damian says that the marketing team at O2 knew the recession would have an impact, if it wasn’t already affecting the market. The old systems had been set up during the boom economy and had to be adapted to deal with the new economic climate.
Addressing emotional behaviour was more difficult. This is where the sponsorship initiatives would come in to play. O2’s strategy was for the long term and the marketing team were aware that, in a recession, campaigns can make a greater influence than during boom times, as competitors are less likely to be spending on similar campaigns.
“In a recession, a good night out is probably more important than ever. People need escape. And when you do go out you want a better experience and where else than at one of the best venues in the world? That meant giving the O2 the best acts, the best security, the best customer service – the best everything!” claims Damian.
If this was the case, then the rebranding of the Point Theatre as the O2 was well-timed. But, surely, there was the danger that the audience would perceive O2 as a corporate company trying to look ‘cool’ by sponsoring a music venue?
He admits it was a gamble, but the campaigns were developed in a way to address this. For example, O2 were able to negotiate 15% of all tickets sold for events in O2 for their priority ticketing campaign - a sure-fire way to make the customer feel special and involved with the brand. The campaign was and still is a tremendous success. Churn was reduced by 31% in pre-pay customers and 8% in post-pay customers.
Make the customer passionate about the brand.
Damian says that success in sponsorship comes down to making sure that customers are passionate about the sponsorship. That’s why O2 chose music and sport - two areas that people get very passionate about.
In their sponsorship of the Irish rugby team, the names of O2 customers were imprinted in the numbers on the backs of the players’ shirts and customers were recorded giving ‘team pep talks’ that were aired before matches. A massive 34% said that O2’s sponsorship of the Irish rugby team made them more likely to stay with the telecommunications company. That figure rose to 50% in customers that actually participated in the campaigns.
Damian says of the campaigns, “The emotions you are creating are about things the customers really care about, like sport and music, rather than simply announcing a new tariff. So, the communications can be very, very strong.”
He continues, “Sponsorships are incredibly powerful if they have content that people care about. It’s all about being part of a community that gives you more than the basics.”
He admits that it is difficult to target everybody. Not everybody is a music or sport fan, but by covering music and sport, he feels that were able to maximise campaign coverage.
Maximise your budget.
All well and good, but not every company has the budget to sponsor the national rugby team or rebrand a landmark building in the capital city.
Damian doesn’t believe that budget should be a major factor in the success of any campaign. His philosophy is that every business has its goals and targets and you need to base your campaign on the budget you’re given. It’s vital to make every cent count, in terms of acquisition and retention, particularly in the current climate. That’s why campaign strategy has to be well thought out and targeted.
What about direct mail? Damian says DM wasn’t as important in the launch of the O2 as press coverage, but it was instrumental in the loyalty campaigns that followed. SMS was also a key element, hardly surprising, given the nature of O2’s business.
And Damian’s favourite act at the O2? He enjoyed Coldplay and Kings of Leon. He says these are bands that just work well in the big arena.
Not so different from O2 really.
Room for rewarding loyalty in hotel industry.
By Gavin Hawthorn (Head of CRM and Loyalty for Whitbread Hotels and restaurants)
22 June 2010
As head of CRM and loyalty for Whitbread Hotels and restaurants, Gavin Hawthorn knows the importance of understanding his customers. Loyalty programs have featured highly in Gavin’s career over the years, having been involved in the largest hotel loyalty scheme in the world at InterContinental Hotels.
At the recent IDMA conference on Loyalty and Retention at the newly completed Aviva Stadium, Gavin talked about the customer relationship life cycle and how to plan loyalty and retention strategies in the face of challenges when marketing for B2B and B2C customers.
Competition and the recession.
Talking about competition in the current economic climate, Gavin said that a lot of the market is focussing on value driven propositions. As a group, Whitbread has taken a lead on that and re-focussed its restaurant brand strategy. Offering the likes of set menus and two-for-one meal deals has allowed the group to react to changes in the marketplace and compete more effectively.
Has the recession had a lot of effect on Whitbread’s loyalty and retention strategy?
“There has been a lot more vouchering,” says Gavin. “People are giving away discounts and there has been more redemption activity. At Whitbread, we focussed on getting the value right, while other companies, such as Pizza Express, have been more aggressive with their vouchering. The marketplace is certainly more competitive.’
It’s clearly important to accurately gauge the success of any loyalty and retention programme, but what’s the best way of doing that?
Gavin has his own method for calculating retention. The simplest way, he says, is to get a figure for defection over a number of months, annualise that figure and the divide by the number of customers you started with. Finally, invert that number as a fraction. For example, if you lose 50 out of 1000 customers every three months, this is 200 per year, a 20% churn rate.
But how does Gavin get an accurate picture of defection?
Gavin admits that his view on calculating churn is very simplistic. The missing part of the equation is looking at the reasons behind defection to identify what factors are involved and what is the best way of dealing with those factors.
Loyalty and retention strategies seem straightforward in businesses such as hotels and airlines. You simply give away the product or part of the product in the form of points or air miles to incentivise repeat business. What about businesses where finding an incentive is more problematic?
Gavin is aware that it’s simpler for providers of desired products. After all, it’s easier to give away free seats or rooms, especially if they are not being sold. Creating loyalty schemes that give back more of the product to the customer is the easiest way to drive repeat behaviour. In a business to consumer relationship, where they don’t have that product, Gavin advises companies to gain a better understanding of the drivers, needs and demographics of their target market.
“Draw a picture of their aspirations and desires. You might need to go outside your own brand to do that, but you need to know your audience and what it wants. Stretch your loyalty proposition, but have your brand as the master of that relationship.”
As an example, he cites O2’s sponsorship strategies. Of course, not everyone has the budget to sponsor the O2 stadium or the Irish rugby team, but one way of getting round this, he says, is to participate in coalitions and partnerships.
Business or pleasure.
Within many sectors, most notably the hotel and airline industries, marketers have to dealing with two main targets: business customers and leisure customers. These are two significantly different demographics. What does Gavin see as the big differences between the two groups and what can be done to address the issues that arise when attempting to target two very separate audiences?
Gavin sees clear differences in the purchase drivers. Business purchase of airlines, hotels or car rental tends to be driven by a practical need to be somewhere. It’s a functional purchase, whereas a weekend purchase is a discretionary purchase. Discretionary purchases tend to be driven by price, occasion and preconceptions. Generally speaking, Gavin believes that a weekend purchase is more likely to be based on price or occasion. Customers tend to do more research to get value for their money.
And is it possible to target both groups simultaneously? Gavin thinks so - if the product is right. He gives the example of Premier Inn, which has seen great success selling discounted weekends to midweek customers. They’ve already experienced the brand so they know what do expect and they know how to book the product. So channels do exist to turn business customers into leisure customers, although he accepts converting leisure customers to business customers is more complex.
Innovative approaches to loyalty and retention.
Earlier in his career, Gavin was involved in an innovative programme for the Crowne Plaza Hotel group named the ‘Think Tank’ campaign. The campaign centred around the idea that people away on business were having ‘moments of brilliance’. Working in consultation with the customers, Crowne Plaza introduced ideas into the brand that would help customers retain those moments of inspiration. For example, an authority on brainstorming was brought in to introduce tools into the Crowne Plaza meeting rooms, such as a meetings warm-up kit. Overall, says Gavin, the scheme was very successful, thousands signed up for our bulletins.
Could that sort of tool be adapted for other businesses?
Gavin doesn’t think it would work with every company, but it’s a good example of how you can tailor programmes based on customer type.
Client life cycle.
Few customers will be around forever. Something Gavin acknowledges in his view of the life cycle of the business/customer relationship. When planning loyalty and retention plans, should businesses factor for the departure of a customer during the relationship?
The answer to this, Gavin believes, will largely depend on whether it is a B2B relationship or a B2C relationship. The life span of a customer will be driven by industry type also. Gavin advises companies to look at the average tenure of relationship in their sector, estimate customer longevity and be realistic about how long that relationship can be extended. Plan your budget on that basis of the cycle. For example, you could invest heavier in year three if you think it is a five year cycle. But if it is a much longer cycle then you might want to spread your budget. What you’re investing in, he says, is value over the life cycle of the client.
When it comes to direct mail, Gavin is a big believer. He plans to use DM to consolidate several campaigns that have just commenced. Quality direct mail works best, he says, when it’s highly personalised and well targeted.
Hertz knows how to drive customer loyalty
By David Oliver (previously Director of CRM, Hertz Europe)
22 June 2010
“Companies spend too much time and resources trying to win new customers when they should be looking after the customers they already have.”
This is what David Oliver says on the value of retention versus new business. Clearly, it’s something he knows a bit about. Until very recently, David Oliver was Director of CRM at Hertz Europe, overseeing the highly successful #1 Club Gold initiative. When Hertz identified that their customers were spending 40% of their budget with them and 60% with their competitors, David saw it as an opportunity. All he had to do was convince customers to spend a bigger proportion of their budget with Hertz. Arguably, an easier task than trying to win new customers.
Customer loyalty starts with customer satisfaction.
He went about doing this by addressing what makes customers loyal. Customer satisfaction is, of course, crucial, he says. One way of measuring this is Net Promoter, a tool used to calculate the likelihood of customers referring the business to other potential customers. David sees this as a solid indicator of business performance.
The main element to addressing customer service issues was in front line service delivery. From his time working on the Goldfish credit card at Centrica, David had learnt that generally customers didn’t always believe what they were being told by contact centres. They felt they were talking to an automated answering service reading from a script, instead of having a conversation with another person.
To improve this, representatives were encouraged to converse with customers before explaining the information they were obliged to give to customers. Doing this, a better rapport was created. The customer found it easier to understand why the representative needed to read what appeared to be boring technical or regulatory scripts to them. As a result, the customer satisfaction scores tended to be much higher.
The same technique applied when customers weren’t happy with the service they received. When a representative apologised on behalf of the company, they did what they could to ensure the apology was perceived as ‘genuine’ by the customer. David emphasised how important this was in terms of customer perception.
Enhancing frontline service delivery is a method of retention that can work with small companies too. He cites the example of his local delicatessen, where the owner remembers all his customers by name and even tries to remember their personal food preferences.
Measuring success.
David measures success in revenue. But, how does he know that success isn’t due to a factor other than the retention marketing? The answer to this, he says, is to use a control group; typically a group of customers that would not be contacted. By comparing revenue from both groups at the end of the campaign, it was easy to see how successful the effort had been.
And what about dormancy as being representative of defection? How can you differentiate between dormancy as defection or due to another factor, such as a competitor’s campaign, for example?
David partly sees his role as ‘waking up’ customers who become dormant. ‘Sleeping’ customers are targeted with the strongest car rental offers. He claims that Hertz keeps tabs on what the competitors are doing, but there are other factors which can’t be seen, such as a customer moving house, or taking a new job. The only way to find out is to put offers in front of them that are so strong that, if there is any likelihood that they will rent cars, then they will respond. The lesson is give dormant customers your best offers and they’ll come back, unless they no longer require the service.
As regards to the recession, David acknowledges the fact that all budgets, including those for the purpose of retention, are under pressure. However, he warns that reducing retention budgets during recession can be counter productive. Companies that continue to fund retention campaigns during a recession can reap greater rewards, simply because many competitors will be inactive in these areas.
Again, it comes back to the issue of frontline service delivery. If companies make a mistake, they should say ‘sorry’ and mean it. In his talk at the Loyalty and Retention conference for the IDMA recently, he compared the structure of complaints to an iceberg. The complaints that customer service representatives see, at just 7%, are only the tip of the iceberg. It’s the other 93% that companies don’t know about that needs to be addressed. That means being proactive. Customers need vehicles for their complaints and they remember when companies respond to their complaints. The end result is they are much more likely to return or refer.
Looking at churn.
One of David’s biggest challenges was at UK energy company, Centrica, where he succeeded in halving churn among selected groups of customers in an extremely competitive market.
“The key to addressing churn is to look at the factors behind it. Is it someone simply moving house or is it someone leaving because of a better value or service proposition elsewhere.”
In such a competitive market, Centrica’s approach was to focus on value, retain the most valuable business and let the least valuable business become the churn.
This wasn’t the only challenge he faced during his time with Centrica, David was tasked with handling the company’s foray into the financial services market. An issue that was largely solved by selling cross-over services such as home insurance in the first instance.
Keeping it simple.
At first glance, Hertz’s #1 Club Gold scheme can appear overly complicated with several tiers based on value and frequency. Rewards are based on range of hard and soft benefits. However, the customer only sees the parts of the scheme that are relevant to them. When schemes become too complex, is there a danger that customers lose interest?
Absolutely, says David, the simpler and cleaner the scheme is then the easier it is for the customer to relate to it and, ultimately take part. Terms and conditions are an essential part of any scheme, but when the Goldfish credit card launched, the brand guidelines stated, ‘no small print’. Now, you can’t simply ignore the terms and conditions, but it was the principle behind ‘no small print’, he says, that drove the thinking of the marketing people. The terms and conditions were minimised wherever possible or included in the body copy instead of becoming another asterisked footnote.
Simple can be clever too. He likes McDonald’s coffee cup loyalty scheme.
“What could be simpler,” he says, “than making the product a key part of the loyalty scheme?”
The McDonalds scheme has the collector card and loyalty stickers built into the coffee cup. Much the way, says David, that very company should build a retention element into their marketing campaigns.
Playing Your Card Right to Win Loyalty
By Chris Jacobs, Business Assyst
22 June 2010
According to Chris Jacobs, loyalty schemes are enjoying a renaissance. He should know as he has been personally involved in the design and implementation of at least 60 loyalty programmes in the UK and Europe over the past 20 years. In fact, Chris was involved with the first known electronic loyalty programme in the UK for retailer, Woolworths.
Now, Chris runs his own company, Business Assyst, helping other businesses build successful loyalty programmes. Not surprisingly, he has few doubts about the effectiveness of loyalty programmes, illustrating his point by highlighting examples of big brand retailers that lost out by failing to embrace loyalty schemes.
It makes for convincing reading.
For instance, in 2000, Safeway announced that loyalty cards had ‘lost their lustre’ and scrapped their ABC card. Sales went into decline until the company was acquired by Morrison’s.
Sainsbury’s made the same mistake, says Chris. When Tesco launched their scheme in 95, Sainsbury’s responded by stating: ‘Loyalty schemes don’t work.’ Sainsbury’s subsequently lost market share, reversed their decision and launched their own scheme.
Indeed, many analysts agree that the slow decline of Marks & Spencer was only brought to a halt by adopting a loyalty scheme. This, from a company, that once boasted that credit cards were not accepted at their stores, never mind loyalty cards.
“85% of the population now have a card, so loyalty schemes must be doing something right,” says Chris.
True. Many consumers have more than one loyalty card. But if these consumers are pledging their loyalty to more than one supermarket, then where is the loyalty? The answer to that, says Chris, depends on the way you implement your scheme.
“A loyalty scheme is not the end. It’s the beginning of the end. It’s how effectively you use the data. Those who use the data most effectively are the ones who win.”
He elaborates by stating, “Ultimately, it’s all about understanding your customers. Simply running a points-based loyalty scheme isn’t enough.”
Are loyalty schemes industry-specific?
Most of the loyalty schemes Chris mentions seem to be operated by retailers. How do you go about implementing loyalty schemes in other industries?
The difference between retailers and other types of business types, he says, is that retailers can’t identify their customers in any other way. If you’re a telecom company, an insurer or a bank, you know who your customers are. They are easily contactable, as you already have their name and address.
Retail customers are anonymous. Businesses need something that helps them identify what type of customer is buying from them and what they’re buying. The loyalty card becomes the key to the customer’s identity. With other industries you already have data you can use to formulate loyalty schemes that are more resonant with your customers, albeit, with softer benefits.
Learning from the UK model.
In business terms, loyalty programmes haven’t been around that long. How does Chris think the Irish market compares to the UK market or even the European market?
Chris believes the smaller market in Ireland has an effect on the uptake of loyalty schemes. Superquinn was the innovator here, but other companies, such as Supervalu are catching up. In the UK there is a lot more competition, as the tangible benefits of loyalty schemes are more recognisable.
However, he reveals that Eastern Europe is catching up fast, certainly in terms of technology. While working on a project in Moscow, he was unable to source an agency there to fulfil the brief. Wherever he looked, he was directed back to the UK. It appears that Eastern Europe is taking their model directly from the UK and benefiting from a steeper learning curve. Irish businesses could avoid making costly errors by also looking to the UK for inspiration.
Advanced targeting.
Chris believes that companies should be using loyalty schemes to identify and look after their most profitable customers. As most marketers will be aware, 80% of profits come from 20% of customers. Businesses should aim to become customer-focused rather than product-focused. However, Chris also warns about profiteering at the expense of customer loyalty, as this can be counter-productive, nullifying any gains made in terms of ROI.
As a way of demonstrating, he quotes an example from the US. A supermarket discovered that men who bought nappies on the way home from work on a Friday night also bought beer. These families generally did their main shopping on a Saturday. The company reacted by moving the beer display closer to nappies, putting nappies on full price on Fridays and targeting the men with other special offers.
He also advises companies to continually re-evaluate their schemes to ensure loyalty schemes are working effectively and to consider a re-launch from time to time to massage that effectiveness against changes in the business environment or marketplace.
Measuring Success.
Which brings us on to the best way of gauging the success of loyalty schemes. Many business analysts say the success is measured by increase in revenue, but how do you know that revenue hasn’t come from another source?
Chris says the answer is control groups. Always test campaigns against control groups. Send a campaign to a targeted audience, but miss out on a specific group and measure the difference between the two.
The importance of direct mail.
On direct mail, Chris says that customer loyalty schemes make it much easier to target customers by direct mail. When customers do get a direct mailing from a loyalty scheme, it is tailored to their interests and is more likely to get noticed. Clearly, DM campaigns that are more focussed result in a greater ROI.
Without doubt, he says, a solid, attractive direct mail piece will have much impact than an email. Whereas an email finds its way to the junk mail folder, or is quickly deleted, a targeted piece of direct mail will grab and hopefully hold the customer’s attention long enough to get its message across.
Ryanair – a unique approach to loyalty?
In his talk at the IDMA Loyalty and Retention conference recently, Chris talked about his experience while travelling to the event with Ryanair. At the airport he was asked to pay a surcharge of £40 for not printing out his own boarding card. This, he pointed out, was unlikely to encourage repeat business.
However, he did accept that this could also be perceived as a type of retention tool. By adopting stringent policies to encourage customers to carry only hand luggage, check-in online and print off their own boarding card, Ryanair is selectively targeting customers who can help them cut costs?
He expected Ryanair’s customer service desk to be flocked by angry customers complaining about their treatment. But, their representative said that wasn’t the case. Most people who travel regularly with Ryanair know the rules. They use Ryanair to save money. Of course, the supplements from those who don’t play by the rules add a valuable revenue stream – courtesy of this unique approach to loyalty.
Certainly not an approach that will work with every company, but clearly an example of how valuable it is for businesses to understand and react to customer behaviour.
An Post DM Awards Winners Breakfast Friday 25 June 2010
“For those who rocked, we salute you.”
To see the work that really shook the foundations and to hear how the winners did it, come along to the always crowd pleasing 2010 An Post Direct Marketing Awards - Winners Breakfast where we will show case four of the best campaigns.
Each of the following agency and client will give a 20 minute presentation:
Bord Gáis Energy, The Big Swith, RMG Target (Best Integrated)
eircom business, No Surprises, Acorn Marketing (Best New Product or Service Launch)
UNICEF, Our Symbol of Hope, Refresh (Best Charity)
Fitzwilliam Casino & Card Club, Bet you didn't Know?, Ignition (Best First Time Use)
Friday 25th of June
7:30am - 9:30am
Guinness Storehouse,
St. James's Gate,
Dublin 8
€25 (includes, continental breakfast, free parking and tour of the Hop Store)
Places are strictly limited, reserve yours today via
www.eventelephant.com/winnersbreakfast
Another Competition: Another Winning Combination
2nd June 2010
The winners from a draw of randomised personalised competition codes provided to attendees at the IDMA Loyalty and Retention Conference on 2nd June at the Aviva Stadium are as follows:
Personalised Code ref:
IDMARET85801653, Wii Fit
IDMARET77901591, iPod Touch 32GB
IDMARET72601635, Netbook
Please make contact with Su by email to claim your prize. Make sure to include your full name, company, postal address, email address, phone number and a scan of your winning code card.
Congratulations!
Our Competition: You + IDMA = A Winning Combination
21st May 2010
The winners from a draw of randomised personalised competition codes provided to attendees at the Direct Marketing Awards on 20th May are as follows:
Personalised Code ref:
IDMA76501536, Wii Fit
IDMA36601716, iPod Touch 32GB
IDMA40601556, Netbook
Please make contact with Su by email to claim your prize. Make sure to include your full name, company, postal address, email address, phone number and a scan of your winning code card.
Congratulations!
IDMA Launches Supplier Directory
April 2010
The re-launch of the IDMA website gave us the opportunity to redesign our Directory of IDMA approved Suppliers.
It is particularly important during recessionary times to avoid, where possible, firms that are not bound by a strict Code of Standards.
All IDMA Members are bound to adhere to the standards of both the IDMA Codes of Practices and that of the Advertising Standards Association of Ireland.
From sourcing envelopes to lists, to agencies, fulfilment houses and all other Direct Marketing services, by using an IDMA Member you are selecting a partner who values the highest marketing standards.
Just click on the Member's Directory and follow the easy guidelines.
Liberalisation of the Irish Postal Market – a briefing note
March 2010
Background
The Department of Communications, Energy and Natural Resources ran a facilitated workshop to discuss issues arising from the liberalisation of the Irish postal market on 13th November 2009. A large number of organisations and businesses were represented at the workshop, including the IDMA. The full market opening for the postal services market is scheduled for 1st January 2011, at which point all remaining areas will be fully open to competition. Irish legislation to implement this must be put in place in 2010.
Main Issues
Universal Service Obligation (USO)
The preferred arrangement is for An Post to be designated as the Universal Service Provider (USP) and to finance the operation of the USO. This appears to be the shared opinion of the Department and An Post for now (it is widely practiced across the EU, though almost half have compensation funds instead). There was little or no support for a ‘compensation fund’ type levy on the wider postal market (and competing suppliers) to fund it. The obvious caveat relates to the cost of USO provision: to the extent that this is a ‘fixed cost’ against a background of (increasingly) variable revenues then the potential for the USO to become a financial millstone for An Post is real.
It is assumed that the USP will continue to provide a five day week delivery service to the whole country (though there was some discussion of modifying this for rural areas). Significant costs will have to be recouped via the postal tariffs for the USO service, which in turn might have to rise considerably higher over time in the absence of direct subvention (a la CIE).
Downstream Access (DSA)
DSA is the name commonly given to situations where a postal service provider bypasses certain aspects of another provider’s (usually the incumbent’s) mail processing line (e.g. the sorting of mail) and deposits mail with that postal service provider for delivery.
The Departments recommendation is that DSA will be mandated in legislation and such access would be provided where requested on commercially negotiated terms. ComReg’s role would be to resolve any disputes.
If DA tariffs are discounted off the USO tariffs, then increases in the latter will increase the former, unless even greater discounts are applied. There was some debate about the need for transparency of DSA tariffs – as some felt that, say, smaller, less regular mailers would be ‘punished’ with lower discounts than those available to larger, more regular mailers availing of DSA. The latter could – not unreasonably – argue that they should be entitled to greater discounts for providing more revenues to An Post.
There was some discussion about including DSA tariff principles in the proposed legislation, and giving ComReg in turn supervisory powers to ensure their fair application.
Bulk Mail
There was further discussion about whether bulk mail should be included or not in the USO (most EU countries don’t at present, though France and the UK do). As it is assumed USO services will be vat exempt (regardless of whatever vat practices are adopted for non-USO services), then organisations such as the charities are keen to see bulk mail retained within the USO.
Competitors are less enthusiastic about retaining bulk mail within the USO for obvious reasons. Note, the vat issue was not discussed at the workshop as it was explained this is subject to a separate exercise by the Department of Finance.
It should also be noted that the USO in almost all EU countries – as it currently stands – includes addressed direct mail.
Pricing
There was also some discussion around pricing after liberalisation. An Post position is that Pricing Tariff Principles should apply and furthermore increases on single piece items should be based on a price control mechanism linked to CPI (Consumer Price Index) or other such relevant index. In addition An Post would also like to maximum freedom for Bulk Mail – again applying Pricing Tariff Principles to ensure transparency and equal treatment of all accessing this service.
Other Issues
There was considerable discussion about service standards and their enforcement. Most of the discussion seemed to assume that ComReg would be responsible for USO and non-USO service monitoring, including licensing of new entrants to the postal market.
It was also considered desirable by many that ComReg would have powers to impose penalties in the event that standard agreements were breached.
Timing
Given the limited resources available in the Department’s postal division, it is not clear at this point that all the necessary legislation will be in place in time for the 2011 timetable – though that is still the commitment. This would entail draft legislation before the summer to ensure its transposition in time for the year end.
At present timelines are as follows:
January 1st 2011 effective date for legislation
May/June 2010 proposed date for draft legislation
Summer – window of opportunity to lobby for any key changes
Autumn – legislation will progress through Oireachtas
New Dawn for IDMA
September 2009
The recent AGM of the IDMA ratified changes in structure for the association to ensure more comprehensive representation of users and suppliers of direct marketing. See the press releases section for full details.
28 September 2011
Have a look at that headline above and see if you can pick out the most important word in it. Next to your name, it’s the single most important word in the English language. So important is it, in fact, that some direct marketing copywriters have termed it ‘the platinum selling word.’ And so persuasive is it that sales people all over the universe rank it as one of the greatest ‘hidden persuaders’ in any form of communications. Want to find out what the word is? Click here to read Robert Hayes McCoy's article.
60% Increase in Targeted Leaflet Distribution
28 September 2011
Leaflet Company Ireland has been setting the standards, not only on how unaddressed mail should actually be delivered, but also in implementing new ‘targeting systems’ allowing their clients to communicate with customers based on their demographic types, combined with their geographic location. For the full story, please click here.
DP Training Events
For information on upcoming DP training events, click here. IDMA members can avail of a 20% discount when booking. Login and check out the Members Section for details.
IDMA Golf meeting planned for 4th August
New Courses for 2011
Masters in Professional Design Practice / Masters in Print and Digital Technology Management – this full Level 9 Masters programme which is focused on business skills, will commence in October 2011. It is designed specifically for people who are working full time and carries a substantial award for the recognition of prior learning through participants business experience. Please contact Lorcán Ó hÓbáin to discuss how it might assist in your business’s development.
Now You Can Write a Genuinely Persuasive Sales Letter
