Direct marketing is an interactive marketing

INTRODUCTION

Direct marketing is an interactive marketing using one or more media to obtain a measurable response from appropriate to the purchase.
Through a direct marketing program, the brand is committed to recognizing its customers to serve them better by matching needs and satisfaction.
The media used for direct marketing are usually television, radio and print. With the development of IT, we have witnessed the rise of new media. We can classify these new media into two categories, on one hand the "fixed" and the other "mobile":
Media "fixed"Media "mobile"Interactive TV PDAPersonal Computer Mobile Phones

These media can optimize direct marketing operations both in the creation of databases at the level of exploitation. In addition, interactivity and personalization, which are undoubtedly two terms related to new media, can significantly increase the return rate of these operations.
 I. DATABASES


1.1. Definition
The databases consist of a list of customer names and information related to them. In fact, it is a set of files. The most significant development for some time, in a context of awareness of the problem is that database marketing has become the backbone of the customer relationship. Any direct marketing operation via new media begins with the acquisition of files or create databases.

1.2. Characteristic
Despite the emergence of new media, features and functions of BDD are always the same:
- A database is a collection of resources managed by an operating system and user programs, in which basic information is stored only once in the elementary level.
- The database provides access to basic information in several different ways. Either by the customer number, or by the department number or by the type of purchases ...
- The basic information of the same set of data are grouped and ordered in the same record. All records of all are the. Thus, it will be composed of thousands of records x each with topics basic information (title, surname, first name, street, additional street, city, zip code)
1.3. The main functions
• Provide quantitative and qualitative operation of the activity in the best conditions:- Cost (production control)- Security (procedure)- Relevance (contact management, personalization of messages)
• Ensure control of marketing activity:- Follow-up campaigns and budgets- Monitoring of logging operations of the file- Detailed measurement of ROI
• Ensure customer segmentation into groups of homogeneous behavior by analyzing the variables of management:- Optimize actions- Set targets by segments- Model the activity
• Measure its files in relation to external data.

1.4. Impact of Web on BDD
With the advent of the web, changes occur in the BDD level: the source of information, creation, maintenance, development, management and employment.

1.4.1. The source of information
Some companies because of their activities has naturally important sources of information to fuel their BDD. These businesses are: banks, insurance and mail order companies, which have the advantage of having bases given sufficiently rich and therefore easily exploitable.
It is also possible to supply the BBD with lists of public access such as yellow pages, lists professional (doctors, lawyers ...). But this type of information sources is not very rich in useful and profitable in the commercial exploitation of the BDD. Indeed, there is simply the name and address of the client, we know nothing else.
There are still companies rental data, but the cost can be very high for a file that we will use only once.
With the development of Web and e-mailing all companies can easily create their BDD through their own websites. Companies use pull strategies and / or push to attract potential customers and gradually establish an interactive relationship.
 The e-mail in the world has 225 million users, 50% use it at least once a day. Projections show that 60% of European households have an email account, it shows that there are many people who can supply the BDD using the Web as a source.

1.4.2. The process of recording information
Before, these are people who choose useful information retrieved suites to direct marketing (direct mail, insert media ...) and record them manually in the BDD. It's a long with a high cost in labor.Today, thanks to the Internet, there is no obstacle between the BDD and customer data, the computer saves information automatically.


1.4.3. The management of BDD
Previously, within the same company, everyone had its own database and information systems was not always common in relationships. The Web supports centralized database and consulting base by people far removed physically. The database is available to the company headquarters, but also in the subsidiaries.

1.4.4. Disadvantages of BDD whose source internet
Internet to retrieve information on customers at lower cost. It should however be wary of the declarative nature of the data retrieved from the web, there are masses of information, both in volume and number of individuals, but this information is accurate? databases will be enriched by providing internet, but, as with databases made up of responses to questionnaires, it is necessary that the information collected is reliable. And the risk is even greater with the Web. For a written response is, for cultural reasons, a more reliable response collected on the net. In addition, many companies use intelligent agents to collect all e-mails that "drag" on the web (in forums, sites ...). These addresses have a low value because they may be obsolete (users often change multiple e-mails) and because they are not qualified. We must therefore put in place control systems.

 II. Interactivity and personalization: the most of new media

2.1. Interactivity
Interactivity is the ability to build a relationship with the prospect, it becomes active which is much more involving.
It also expanded the opportunities to find and keep in touch with its target, to better understand their needs and respond accurately and quickly.
The interactivity proves all its effectiveness in the context of interactive television. Indeed, interactive advertising now appears as an effective and complementary to the direct marketing already established. The development of web call centers enhances interactivity and more encourages contact and relationship.

2.1.1. Advertising and interactive TV
In this environment, interactive television is the vector of the widest distribution but leaves already prefigure other ways to be directly and almost constant contact with his audience.
Interactive advertising is positioned as a complement to more traditional media essential. It provides further information in terms of goals, power, and contacts with the hearing.
How does it interactive advertising will complement the range of the advertiser?
One advantage is significant to keep in touch with a voluntary consumer, having a process approach to product and application information.
She has also more than technology and true interactivity (dialogue between the consumer and the supplier). This substantially changes the customer approach, with a range more suited to individual needs (customized trips ...) and broadens the range of marketing tools of the advertiser.
It mainly offers the ability to target offers based on criteria scalable. The geographical position of the viewer will allow, for example, to direct it to the car dealer nearest you. Its usual hours of listening, viewing time will select offers more accurate. Quizzes, and competitions provide a better understanding of the viewer.
It is therefore a powerful way to get immediate feedback and renewed, and to know precisely the habits of television viewers.
Obviously, the objectives may differ advertisers. Operation for further information and images related to digital technology, creating contact files, create operation of events and traffic, followed by direct marketing, loyalty and questionnaire / competition, the range is wide and still underestimated.
Against by the act of purchase is not made on the site, advertisers still favoring the re-direction requests to distributors by the criteria of proximity. But it is clear that over time, changes in distribution (including dematerialized products) will certainly be opportunities for direct purchase.
What principle for the consumer?
1. A banner informing the interactivity of the advertisement appears for the generic advertising.2. A blinking banner for the commercial, inviting the viewer to click on the remote for more information.3. The viewer enters then, at his request, the interactive environment.
The viewer is then in a poster suitable for a more in-depth product and its features. This space reserved for the advertiser will vary depending on the objectives and budgets of advertisers but the technology can offer almost unlimited opportunities (visit shops, travel sites, the virtual drive car ...).
The advertiser is no longer passive but participated in its relationship with the brand, the product.
What other types of advertisements are possible on the interactive TV?
For example, the equivalent of the sponsorship sections / programs may be in the form of interstitial advertising (ie pages between different screens). And all these offers to give consistent interactive advertising a very high efficiency. The audience measurement will optimize the criteria for information received, length of message, and accurate, providing qualified and accurate consumer databases, without the psychological barriers of the databases on the Internet.
Advertisers will obviously be very interested in the possibilities that combine mass media and direct marketing.

2.1.2. The web call centers
To accelerate e-commerce (on interactive TV or PC), commercial sites need to humanize their operation. In the absence of human contact, users are reluctant to go to the purchase. Call centers seem to be the ideal platforms to manage these new relationships. Thanks to web call centers, if the user finds himself in trouble on a site (if it can not fill out a form ...) he can click on a button using (call back) to appeal to web call center who will contact either:- Recalling the Internet at home- Managing more or less direct incoming emails- By coming into direct conversation with the user via a "chat"- Sharing with the internet browsing (co-browsing)- Entering into videoconferencing through the use of webcams
These web call centers will therefore enable the development of interactivity on the Internet. This will make it easier to support a user who is on a site following a direct marketing operation (e mailing ...) to bring it easier to buy.
Example: Travelprice.comThe online travel site was one of the first to launch a multimedia call center that handles Voice over IP, chat, instant management of e-mails, making remote control of the position of the Internet and redial. The purpose of this web call center is to meet the exponential growth of connections on the site (over 30,000 visits per day). "We answer 95% of calls within 15 seconds and the level of advice is optimized. Everything is designed according to the visitor, it must reach us by all means, when he wants. "Says Luc Hossepied, customer relations manager at Direct Marketing magazine. Therefore, we can imagine the power of a direct marketing operation using interactive television as a medium with a web call center to handle prospects.

2.2. Personalization
The use of new media allows you to customize messages to prospects or customers and significantly improve operational efficiency of e-mailing, e-couponning ... A successful customization may cause a significant improvement in the results of a direct marketing campaign, while reducing costs.
We will consider two cases that demonstrate the increasing importance of personalization in the relationship between a company and its customers.

2.2.1. Manutan cases, professional equipment and supplies
Manutan is a company of professional equipment and supplies. It is located in a market increasingly competitive. Customers want more personalized services such as management consultancy, the ability to manage its supplies with comfort and efficiency (e-procurement) ... Customers want more and more to have a special dialogue with suppliers.
The company must offer products and personalized services accessible by a growing number of channels: mail, fax, telephone, Internet or otherwise. But among all the ways mentioned, the Internet is undoubtedly the most effective tool.
First, Manutan had posted on its website (www.manutan.fr) its electronic catalog that complements their traditional paper catalog. In this electronic catalog, users can find 80,000 references. The objective is to add Manutan products by increasing the depth ranges to reach two million references. The electronic catalog makes it possible for the user to view products and develop the premises as they wish.
The possibilities are numerous. As the paper catalog, it will be possible to contact an engineering consultant for the construction of warehouse or office. Novelty, the user may proceed in line with the personalization of the offer: the mouse pad mat at home, anything can be decorated with a few clicks with the colors of the company. By creating interactive links, the site will promote cross-selling via the call center.
To complement these direct marketing, Manutan had also used the site www.welcomeoffice.com whose specialty is the marketplace.
Welcome Office offers three access levels:• Simple consultation of the catalog• Ability to make an order• Sign the good for the buyer
In addition, it gives customers the ability to track logistics and maintain a command history.
However, access to pages is still slow and the screen size is a constraint of space. The model of the electronic catalog operates on a totally different sense of the paper version, the regulars (of paper) is likely to be a little lost at first.

2.2.2. If Peugeot
Peugeot to set up a new internet strategy. Using BroadVision technology, the Lion brand seeks to expand its customer relationships by offering users a site automatically adapting their tastes.
BroadVision is the leading global provider of a suite of integrated software packages for electronic commerce over the Internet. This tool allows you to customize the relationship between the brand and users. It's actually a platform for publishing a personalized web content.
BroadVision achieves two goals: to publish dynamic content stored on a database and thus facilitate the update of HTML pages, text and visuals. But this technology also allows you to customize pages in the interests of Internet users. With its password, the user accesses a personalized home page on the website of Peugeot. He does not need to surf for information that may be of interest. For this, the user must agree to register and fill out a form to assign a profile. Peugeot also has used a service that allows it to develop a specific typology of "internautomobilistes." The lion brand class and users according to five types of criteria:
• Socio-demographic,• Motorist,• User profile of the Web• Profile by lifestyle• Points of interest
Finally, BroadVision refine the profiles obtained according to the paths taken by visitors. Peugeot may therefore provide a custom site to its users. The home page will be able to offer special promotions to the profile of the user. The website, whatever the medium used (TV, PC, PDA ...) becomes a true direct marketing tool that allows for operations targeted and personalized.

2.2.3. Personalization and mobility
It is a fact, the objects "nomads" (portable, handheld game console ...) grow and people are more mobile. Also, how touching the prospects in these conditions? With mobile devices (including mobile phones and PDAs) and new communication standards (WAP, UMTS, GPRS ...), companies can perform direct marketing customized to the user profile and its geographical position.If subscriber services company Screenrush request the list of movies that are playing via the WAP phone, it also sends without knowing its location. Thus, the response will take into account the geographical position of the user and the message will also be shown in the latter a restaurant near the cinema. Of course, this means that there has been prior agreements between the restaurant and Screenrush and that the company learned about the culinary tastes of its customers. This type of operation is technically possible, however, it remains to find a profitable business model for the claimant's earnings (in the example Screenrush).

III. BUILDING A DIRECT MARKETING CAMPAIGN WITH NEW MEDIA

3.1. The permission marketing: key to successful direct marketing via new media
3.1.1. Definition
The use of new media as carriers of direct marketing actions introduced a new marketing approach: the "Permission Marketing" Marketing and underwriting. This approach gives the customer a central role in the implementation of direct marketing, the customer authorizes the company to propose an offer for which it clearly shows an interest. This technique provides added value to the interaction with a customer or prospect.This approach assumes the part of businesses to communicate frequently with each client individually.

3.1.2. The basics of "Permission Marketing"
The promise of new media to become media marketing One to One, begins to take shape through permission marketing, since it helps to attract and to interact with customers.This is the best way to build a true customer relationship.
 An offer is made directly by the advertiser and may concern a product or service or offer information.
 The prospect responds to an offer and gave his formal consent to receive information about the company or promotional offers. He is also given an option to show his agreement to receive subsequent offers that meet those needs.

3.1.3. Uses
Two modes are used and they are completely contrary to the technique of "spamming" (wide dissemination of information or advertising with no real segmentation targets):
Campaigns  "opt-in" or newsletter sponsorshipThe user already knows the company and is prepared to receive information from it (he first left his contact information on the website for example). The company then sends the messages directly to other interested or else integrates in a message sent by the site owner known to the user (eg a newsletter).The advantage of the sponsorship of newsletters is the precise targeting, low cost and immediate impact (more than 3%).
 Campaigns "Opt-out" or "traditional advertising mail" means that the user is not prepared to receive information of the company but may be interested. The rate of "waste" (bad reaction leads) is between 0.5% and 1.5% of the mass mailing.
The success of the first type of campaign against the second, primarily due to the fact that the company is the sole issuer of the message and a single advertiser, the attention is fixed on the company when the prospect reads the message advertising.
Example: Newsletters on strategies-online.comStrategies magazine offers the opportunity to receive every morning by e-mail, a full point on the current communication, marketing and media.The newsletter keeps in regular contact with others, build relationships with them to identify their needs and ultimately to make the Internet a volatile loyal customer. Real tool for profiling (targeting a qualified prospect regardless of age, CSP, gender, their interests), it allows for a targeted direct marketing by e-mail, mobile phone, PDA ...
Example: Net2one.comQualification file to access the free monitoring service (ability to compose his own press review) must submit their name, surname, date of birth, employer activity, function (fields).
The Permission Marketing emphasizes the fact that new media are both push and pull media. Initially, the prospect or customer is attracted by an offer, a game (pull strategy) and in the second time he sends a message (push strategy). We have understood, it is essential to develop a marketing subscription before launching a direct marketing operation via new media. Indeed, the operation will be more profitable than the prospect has expressed its consent to receive offers and he has stated his preferences and expectations.

3.2. The emergence of information PUSH
PUSH technique appeared in recent years with the emergence of new media, is to send regular information on various media (computer, mobile or PDA) to a user. As defined marketing is all the communication channels pushing information to the user.
This is sent to the client:
 All information for these interests will be defined as the first. Targeted information, regularly updated and to build lasting customer relationships
Ultimately, it is anticipated expectations, to prospect and customer loyalty.
Example: "autobytel.com" Online sales of automotive assistanceConsumers between the characteristics of the pattern online and receives all the technical information of the selected model, and within 24 hours, it will be contacted by a dealer. The site also sends the customer information about the financing and insurance if the purchaser wishes.

Example: PUSH and strategic customer.For nearly a year, MicroStrategy, a U.S. company founded in 1989, offers a version of its WAP service Strategy.com. This new service allows customers to receive financial information, news, weather any mobile phone with access to the Internet. Other information will also be offered: traffic information, cinema, sport."The wine you used to buy is currently in promotion, press # to order or click on the hyperlink." Based on its roster, and the company sends 500,000 emails to the best customers to increase store traffic and therefore sales.
Example: "Push mail"The site Emailjob.com opened several specialized sites (IT & Telecom, Transportation, Banking and Insurance) and offers a log in (virtual office) where the candidate can develop several search profiles in order to receive more targeted offers, and also to follow the evolution of statistical research. The site also offers a "push mail": the applicant will receive a daily email with all the offers may be of interest.

The technique of PUSH is to provide information tailored to the profile and needs of the user. The major revolution in terms of PUSH information is the use of utility (software) such as PointCast, and castnet Backweb that automates the monitoring activity on the Internet. "This is not the client software that queries the server at regular intervals but the server that broadcasts information automatically when it is updated."In the field of direct marketing, this means detecting interests of the customer on first contact and referral to bids that meet its concerns. In other words, spread across many media e-mail, SMS (short messages on mobile), WAP (Wireless Application Protocol), PDA (Personal Digital Assistant) almost automatically, information or promotional messages to targeted customers of a company .

3.3. E-mailing and e-couponning, new means of action of direct marketing
3.3.1. The e-mailing
How? Definition of the target by the advertiser Search the site addresses the editorial mailing lists subscriber whose profile is closest to the target. Preparation and insertion of the message The price varies depending on the quality of message content, the fineness of the qualification of clients (some companies may combine up to 70 criteria) and frequency of shipments. (Average: 1.60 F HT contact sales) cost e-mail is about 6 cents a HT mail.
The e-mailing is designed to manage files prospects (including those that may be involved in the campaign) and retention prospects. Useful tool for direct marketing, it can test campaigns: to select a portion of the target and then make an analysis and comparative tests in order to understand what are the offers that work.
This new media facilitates communication between the customer and the advertiser and automates this relationship: if a customer did not order more than a month, an email is automatically sent stimulus (eg, La Redoute).

To overcome the problems associated with capturing new customers, the modern techniques of direct marketing efforts to focus on strategic customers (one that maximizes revenue over its life). The operations of e-mailing are very interesting in this context, they allow to focus the company on key customers to increase their average purchase basket.
Example A campaign e-mail marketing and personal successCoco, an American clothing store, first perform a segmentation work by selecting from its database of 25 000 850 customers of its best customers (who have purchased more than $ 800 per visit on average 9 years and generates 85% of its turnover amounting to 2.5 million dollars). Like their clothing preferences were indicated by the purchases, the company was able to launch a campaign e-mail marketing very targeted. The promotional brochure has been adapted to the preferences of each client. Results of the campaign:
 Rate of return of 10% Sales in the amount of $ 50 000

3.3.2. The e-couponning
The coupon is a tool widely used in promotional campaigns. It entitles to discounts on the purchase in store for the specified products. Campaign couponning traditional (that is to say on paper) has a significant cost. There is also a high attrition rate, targeting is only geographically (for distribution in mailboxes), and the campaign is limited in time.
The online coupon is an interesting solution to overcome these drawbacks. This promotional tool is indeed very effective and focused when it is offered on-line. Although only 3% of buyers use coupons found on websites, the market for e-coupons is promising.
It provides the ability to quickly change at any time the coupon value, frequency distribution, but also to target the content of the offer based on the prospect / client. Finally, it is possible to customize the coupon according to the profile of the user.
The disadvantage, however, remains weak in visitor numbers. For example, the site Expli'site recorded 10,000 visitors per month, while the click rate is particularly high (30%).
What application for direct marketing?
Prospects and customers can receive these e-coupons on their PC via the net but also on their mobile phones through GPRS and UMTS. In addition, it is also possible to conduct such operations on laptops using the current SMS.
Example:This is the type of SMS that used a club can receive: "Hi Frank, happy birthday. You are invited with friends to celebrate. Password" Happy B ", a surprise awaits the next weekend. "
This custom message, the 650 clients included in the listings of a nightclub located in the Cognac receive on their mobile phone the week of their birthday. Until recently, the same night club promoting it through a policy of targeted postal mailing."We send on average 10 to 20 SMS Birthday week, and generally get 5 back. We know this because a password is included in the SMS, to be given to the fund. With the system regular mail, a mailing sent to 400 people on average gives an entry, "said Frederic Dechaume, the consulting company Bordeaux Development AZ, which has set up the SMS alert system three months ago for several clubs.
To collect the mobile numbers, the club hosted the games in the evenings (subscription marketing). The advantage of this method is simple, inexpensive and can reach customers wherever they are.
According to the general public, companies are starting to take advantage of these three letters, synonyms primarily a direct marketing and custom, ideal for reaching customers more volatile.
Phonevalley, a provider of mobile technologies, and prepare for one of its customers, a major distributor, an SMS-based system: it must help regulate the flow of customers at the checkouts of supermarkets.
The distributor will indeed use a database targeted one of its customers with the loyalty card, to send an SMS, saying not "If you go shopping now, you will not tail" but, "If you go shopping today, special discount on your favorite chocolate." To qualify for this promotion measure, the consumer must give the cashier a code through which the return of the operation can be exploited. It's actually a formula for managing couponing the best cases.
 CONCLUSION



As we have seen, the arrival and development of new media revolution in direct marketing. Now, direct marketing is more targeted, more personalized and the prospect can enter more easily related to the company. As a result, these operations are now more profitable because they have better rates of return.
With these new media, the relationship that develops the company with its public and close to the One to One Marketing. This is especially true as the means used by the company are important (highly skilled database, web call center, consumer tracking software ...). However, such a technological one-upmanship is not necessary. Each company must study the appropriate solutions for direct marketing to reach its targets. The new media also offer simple and cost effective solutions to exploitation by SMEs (eg SMS). Also, do not forget that a direct marketing campaign implies developing a media plan. If the Internet, interactive television (...) have the potential, do not put together the "old" media such as print, radio, television ...