B2B junk mailers threaten future of DM industry

B2B marketers are ignoring best practice guidelines by using out-of-date, poorly targeted data and thus flooding the market with 'junk mail'. 

And it's a move which threatens to cripple the DM industry, says myb2bonline.com - the online business-to-business subsidiary of data asset management specialists, The REaD Group.  

It has analysed the DM activities and attitudes of more than 300 small to medium sized companies (SMEs) and discovered that B2B marketers are not spending money on updating their company data - a strategy that could result in tough legislation being imposed upon the industry as whole. This is particularly bad news for B2C direct marketers who are responding to government and consumer pressure to 'up their game'. 

UK businesses receive around one billion items of direct mail every year, 184 million of which is being sent to companies which have moved or ceased trading, reports myb2bonline.com. One reason for this is that incoming business mail goes through a more complex mail filtration process, which often sees company staff immediately throwing away incorrectly addressed direct mail.

Suppression tools are available to help combat the problem, says Marcus Oxlade, business development manager, myb2bonline: 'Using a suppression product will deliver the same response rate while realising a greater return on investment. There would be a drop in the amount of direct mail going to landfill and mailers would comply with best practice guidelines. B2B is a potentially lucrative market for those brave enough to make simple, cost-effective changes that could make all the difference to the success of a campaign." 

Andy Bridges, data quality and supplier manager at Groupe Aeroplan - owner of loyalty programme Nectar -agrees: "Data accuracy is fundamental to everything we do at Groupe Aeroplan. I believe B2B best practice should stem from the learning experiences of the B2C data market as it self-regulates.

"Groupe Aeroplan sends a number of highly targeted communications to customers and we find it difficult to imagine trying to manage a nationwide loyalty scheme without accurate data and effective suppression management. We regularly use commercially available suppression files and best practice to ensure the Nectar Business cardholder experience is as seamless as possible. 

"I would hope that small to medium businesses would prioritise their DM strategy, to help regulate this marketplace and eliminate the term 'junk mail'."

Iain Lovett, of marketing services provider Blue Sheep, adds that SMEs need to adopt a more dynamic multichannel approach to eliminate waste and increase profits: "Single channel 'economy of scale' direct marketing campaigns are no longer sustainable. Clients who have invested in the data to undertake a true integrated approach of email, mail and telephone have experienced performance uplifts as high as 300 per cent and an overall cost reduction of 30 per cent. The facts speak for themselves that this is the future of direct marketing."

For a free data health check visit: www.myb2bonline.com

Article from Direct Marketing International, February 2010