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July 2001

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July 2001

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Getting the desired messages across to existing and potential customers is a continual challenge. Email has opened up new opportunities for direct marketing, although in Europe changes are afoot as the European Commission ponders over its 'Unsolicited Communications' directive. But how receptive are your potential targets to email marketing? How many other messages are your communications competing with? To find out, we interviewed decision makers on CAD/CAM related issues at 245 UK sites.

The Volume

Clearly the more emails your existing/potential customers receive a day, the less chance that your offerings will get a look in - regardless of how relevant or appealing their content is. People often complain about the information overload that email can bring - however the majority of CAD/CAM decision makers in our sample did not claim to be snowed under with messages. Just over half claim to receive 10 or less a day, and a quarter receive between 11 and 25. Interviewees were asked to include all emails from internal and external sources.

 

Methodology

Telephone interviews were conducted in June 2001 with 245 UK-based CAD/CAM using sites, representing a range of industry sectors and company sizes. The term 'supplier' was defined as any company in the supply chain of CAD/CAM products/services that has an interest in contacting end-users directly.

 

The Competition

So we have a glimmer of hope that a high proportion of CAD/CAM decision makers are not currently deluged with emails. But how many other suppliers of IT software and hardware are vying electronically for their attention? We asked our sample how many unsolicited marketing emails they receive a week from this source (including existing suppliers and those seeking new business).

Nearly one in five do not receive any communications via email from IT suppliers. This is not to say of course that other colleagues on these sites don't receive any; simply that our interviewees with responsibility for CAD/CAM functions are not being targeted. Just over half of this group receive five or less emails from suppliers seeking further or new business.

The Format

We asked our sample if they had a preferred format for receiving external emails in. Three quarters like plain text, 11% favour rich text, 6% like HTML, and 10% don't really care.

The Reaction to Existing Suppliers

How do CAD/CAM managers/decision makers react to marketing emails from their existing suppliers? Only a quarter of our interviewees said they read all of them, while over a third (37%) said they read some depending on a range factors, mainly related to time/pressure of work. We defined 'read' in this context as skimming through enough content to understand what the supplier is offering or telling them about. Disappointingly for the suppliers concerned, almost two out of five (38%) said they delete all of them unread.

CAD SPAGHETTI may look in future at how CAD/CAM managers would like their suppliers to use email. This medium could be invaluable for staying in touch with customers; however if suppliers are putting too much emphasis on trying to sell extra goods/services rather than offering 'must have' information or adding value in more subtle ways, it's easy to see why recipients just get in the habit of deleting them.

The Reaction to New Suppliers

Surprisingly, emails from suppliers of new or alternative products/services stand a slightly better chance of clearing the first hurdle than those from existing suppliers. Again around a quarter of our interviewees read all such messages; and half read some of them according to pressure, mood etc. Only a quarter kick them straight to the recycle bin.

The Success Rate

Getting your target group to read your email is minimum success criteria - spurring them into action the ultimate aim. Our survey throws up some encouraging signs; a third of our interviewees have responded positively (ranging from asking for more information to making a purchase) to such communications in the past.

The Future of Email Marketing in Europe

The future use of email marketing in the member countries of the European Union is uncertain until legislation is confirmed. A draft European directive on unsolicited communications states that 'electronic mail for the purposes of direct marketing may only be allowed in respect of subscribers who have given their prior consent'. No definition of 'consent' has yet been given, nor an indication of whether this will create a requirement for 'opt-in' email marketing. Our understanding is that an individual's work email address that identifies them by name and place of employment will be construed as personal data. Unsolicited emails to such addresses will therefore be subject to this forthcoming legislation. Various groups are lobbying to influence the European Commission's work on this subject. The Direct Marketing Association UK said: "Our main concern is that the proposed provision does not distinguish between true 'spam' email - which is bulk untargeted marketing emails - and the use of targeted lists to develop a specific relationship with customers."

Confusion is likely to arise on the issue of sending emails to businesses in different EU countries. EU countries are likely to adopt different interpretations of the legislation, and as with almost every aspect of EU law, there will be variations in the degree to which the legislation is enforced.

Conclusion

These findings give a useful indication of the reaction of senior CAD/CAM decision makers to marketing emails. As with other types of direct marketing, so much depends on the individual's mood or work pressures at the time of receiving the message - hence the largest group of interviewees state that they only open some of the marketing emails sent to them.

Clearly reactions to marketing emails are not just occurring in isolation; their success is related to the mix of other marketing activities taking place. Suppliers targeting the right people with communications relevant to their needs will be confident of making more impact than indicated above.

For advice on email marketing, including emailing CAD/CAM users, contact Dave Trevena at david.trevena@business-advantage.com, tel: + 44 (0) 1689 873636.
To find out how you can improve the effectiveness of your customer and prospect data, visit our Database Services page.
If you want to obtain more sales leads, find out how our Lead Generation Services can help.
To find out how to increase the returns from your direct marketing campaigns, visit our Telemarketing Services page.