Advantages and Disadvantages of Direct Marketing

We discussed direct marketing and its various methods in one of our recent posts. In this article we will discuss the various advantages and disadvantages of direct marketing.

There are certain benefits and drawbacks to each method and a marketer must take care and be responsible with the customer information that he/she holds. A direct marketer is enormously accountable to the customers as a result and this accountability is not restricted to merely safekeeping the customer data but also being intelligent about the marketing message, tone, and frequency of the marketing communication.

Apart from the direct customer interaction via such communication, a direct marketer is also responsible for streamlining an identified customer segment to acquire an actionable customer database. Once a campaign is planned, there are pre and post-campaign analytics to be taken care of in order to properly measure the results. This enables the marketer to determine whether the marketing efforts and communication hit the mark or miss it, and if it missed it then by what margin and for what reason. On this note, let us talk about the benefits and challenges experienced by a direct marketer.

Advantages (or Benefits) of Direct Marketing

The most obvious benefit of direct marketing is being able to address actual and potential customers directly, in a more individualized manner. However, this is not the only advantage. Following are some more benefits that make a lot of marketers take the direct road to woo in customers.

Traceability and Measurability of Marketing Effectiveness

Direct marketers offer the contacted customers (potential or actual) the opportunity to respond to the marketing communication, usually within a given time-frame. This helps marketers to track the response rate and response category (positive or negative) and prepare analytics, based on which they can modify or streamline their marketing efforts and communication for better results in future.

No Shooting Arrows in the Dark

Direct marketing involves preparing and maintaining a customer database. A database defines the target segment into a finite group and each individual in this finite group is communicated with via personal and direct communication channels such as telephone, text, voicemail, door-to-door communication, etc. In a way, direct marketers get a closer brush with their customers and in keeping their databases updated and staying in touch with their customers, such marketers have a better shot at modifying their communication and communicating relevant offers to only those customers who are most likely to benefit from it.

Easier Campaigns

Most direct marketing campaigns and communication are easier and relatively inexpensive to design and create. Direct marketing channels such as emails and text also make creating the communication quicker and cheaper compared to putting up massive hoardings and paying big bucks for advertisements that may or may not be seen or heard by the target audience. This also makes it easier for direct marketers to launch test campaigns in new markets or segments as the cost and risk are considerably lower.

Disadvantages (or Drawbacks) of Direct Marketing

Direct marketing may be a bed of roses in some aspects but it comes with its own share of thorns as well. Following are some of the most glaring challenges and limitations of direct marketing:-

Difficult to acquire data necessary for preparing customer database

While a customer database is the spine of direct marketing and its presence is one of its biggest advantages, acquiring such data may be a mammoth task. Not everyone may be willing to participate in market and customer surveys and give out their personal and professional details. Also, data dealers and services that sell captured customer data to marketers also charge a high price to part with such data. So, the initial creation of a database may be quite an uphill task for a marketer.

Customers resent intrusive communication

This is an obvious drawback of direct marketing. Most people do not like their inboxes, voicemail boxes and mobile devices to be flooded with marketing and promotional content. To remedy this, people often use email and voicemail filters and the marketer's communication either lands straight in the SPAM folder or gets deleted without being opened by the targeted customer.

Limited reach

While having a finite defined group of target customers acts as an advantage in many ways by focusing marketing efforts, this can also be a restrictive factor insomuch as the marketers reach stays limited. Despite database updates and addition of new customers, the reach of direct marketing can never touch the reach of mass marketing methods.

Environment and Law

Various countries have laws against spamming and littering. Direct marketing communication in the form of flyers and leaflets are wasteful practices as they promote loitering and consumption of paper.

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