Direct marketers boost e-mail and EC spending while hunkering down in CRM

Direct marketers plan to boost their spending in the fourth quarter on e-mail marketing, customer prospecting, product development, e-commerce initiatives, database segmenting and customer services, while reducing or maintaining their spending on customer relationship management, direct mail and teleservices, the Direct Marketing Association reports in its Fall 2002 Quarterly Business Review survey of DMA members,

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Direct marketers are coming off a quarter during which sales fell below expectations for 60%, the DMA reports: 19% reporting that sales were significantly worse than they expected at the beginning of the year and 41% saying somewhat worse. Only 17% said sales were on target, while 18% say they were somewhat better and 5% said significantly better.

The predicted economy-wide recovery has to date generally failed to materialize, leaving direct marketers now more focused than ever on new customer retention and acquisition strategies," said H. Robert Wientzen, DMA president. Members cited the state of the economy as their biggest concern, with " postage rates and postal reform, the threat of war with Iraq, and other issues arising from terrorism distant runners-up.