DMA Survey Shows Businesses Lose Out Owing to Poor Response Management
Businesses are overlooking new sales opportunities, in spite of the tough operating climate, according to a new research study undertaken by the Direct Marketing Association (DMA). The research shows that a quarter of companies failed to respond to a customer enquiry via their website and that even when prompted, 14 per cent still did not respond.
The study was carried out with the intention of testing response times and personalisation of the response. A simple email request for a catalogue or brochure was sent to 100 UK-based companies covering 10 different sectors (hobbies/sport; children/nursery; clothing; food & drink; gardening; gifts; health & fitness; travel; home; and female interest catalogues). Of those companies that responded, the average response time was 3.6 days and only 34 per cent sent a personalised response.
John Dyson from the DMA Response Management Council, comments: “Incredible as it may seem, companies are falling at the first hurdle and turning away potential sales. Consumers have come to expect rapid response times, even real time responses to enquiries, and so it is vital that companies are not just acting upon queries but acting quickly.
“It is a proven fact that a fast personalised reply results in an increase in response and conversion rates, greater customer loyalty and, as a result, a rise in sales. With budgets under more scrutiny than ever, marketers really need to extol these benefits to prove their worth. Judging from our research findings, it would seem that some companies need to go back to the drawing board and reassess their response handling.”
The sectors registering the fastest average response rates were children/nursery (2.3 days), gardening (2.4 days) and home (2.6 days). The food and drink sector was the slowest by far with an average response time of 7.6 days while the gifts sector recorded the largest number of non-respondents.
However, there are some improvements when the results are compared like for like with a similar survey conducted in 2005. Response times have improved, going from 3.9 days to 3.6 days and there has been a 14 per cent rise in companies using personalisation over the past four years.
Sally Hollis, chair of the DMA Response Management Council and Managing Director of Arden Direct Marketing Ltd, adds: “The research findings underline the impact of the response management process on a business’s bottom line. As a result, clients need to be confident that they are putting their business in the right hands. The DMA Response Management Commitment Scheme aims to facilitate their choice by providing response handling companies with a stamp of approval – showing that they operate to the highest standards and codes of practice.”
For further information on the DMA Response Management Commitment Scheme, visit: www.response.dma.org.uk