module 2.4 direct marketing

What is direct marketing ?

Direct marketing is a marketing approach where a company builds a relationship with individual customers rather than marketing, the entire market In the same way:-

The goal is to know:

• Who the customer is?

• What they bought

• What they like

• How often they buy

• How valuable they are to the business

Simple definition

Direct marketing is using a customer information to create personalise communication offers and relationships

Why direct marketing was revolutionary?

Traditional mass marketing

One message for everyone

Example:-A TV advertisement is shown to millions of people

The company doesn’t know:-

• Who watched?

• Who bought?

• Who ignored it ?

Direct marketing

The company knows exactly

• Who received the offer?

• Who opened it?

• Who clicked it?

• Who purchased it?

This creates a direct relationship between company and the customer

Shopkeeper example :-

Think about a small neighbourhood shopkeeper

He knows:-

• Your name

• Your favourite products

• When you usually visit

• What brands you prefer?

Because of this, he can say :-

Pranav, that perfume you like is back in stock

Or

A new watch collection just arrive. I think you will like it.

This is direct marketIng

Modern companies simply do This using technology and data

the Evolution of marketing

Stage 1 Product centric

Focus:-

• Products,

• sales volume

• market share

Questions:-How do we sell more products?

Stage 2 Customer centric

Focus:-

• Customer

• Relationship

• Lifetime value

Questions :- How do we create more value for this customer?

Direct marketing help created this shift

direct marketing was one of the most approaches to focus on :-

• individual customers

• Customer database

• Customer Behaviour

• Long-term relationship relationships

This led the foundation for modern customer centric marketing

The information direct marketer is collect

A direct market tries to build a customer profile

1. Basic information:- Name, age location

2. Purchase information:-

• What they bought

• How much they spent

• Purchase frequency

3. Behavioural information

• Websites visits

• Product viewed

• Card abandonment

• Email engagement

4. Preference information

• Favourite categories

• Preferred brands

• Buying habits

The goal :- personalisation

Instead of sending everyone, the same messages

Traditional marketing& Direct marketing

Difference

Traditional marketing

Customer A→ Same message

Customer B→ Same message

Customer C→ same message

Direct marketing

Customer A→ Personalise offer

Customer B→ Different offer

Customer C→ Different content

Examples :-

Amazon :- Tracks:

Searches purchases, wish list ,broWsing Behaviour

Then recommend product specifically for you

Netflix:-tracks:

• What you watch

• When you watch

• Genres you prefer

Then personalise recommendations

Spotify :- tracks :

• Listening habits

• Favourite artist

• Genres

Then creates :

Discover weekly

Personalised playlists

The most important concept:-Customer lifetime value (CLV)

Direct marketers don’t focus on one sale

They Focus on:- How much revenue will this customer generate over their entire relationship with us?

Example :-

Customer A buys ₹2,000 Shirt

Traditional marketer

Revenue = ₹2000

Direct marketer thinks :

If this customers buys :

4 shirts per year for 5 years

Value :₹40,000+

Now the relationship becomes much more important

My direct marketing is even more important today

Direct marketing started decades ago

But today, it’s everywhere

Every modern platform uses it

1. Instagram:-Personalise feed

2. YouTube:-Personalise recommendations

3. Amazon:-Personalise shopping

4. Spotify:-Personalise playlist

5. Netflix:-Personalise content

Marketing insight

Modern Digital marketing is essentially direct marketing at scale

Technology allows businesses to treat millions of customers as individuals

As a marketer, you will increasingly work with

• CRM system

• Customer database

• Email marketing

• Loyalty programmes

• Customer Segmentation

• Retention campaigns

The best market don’t just create ads

Understand

Who the customer is what they need, and when they need it?

Frame work to remember :-

Direct marketing process

Collect customer data

Understand behaviour

Segment customer

Personalise communication

Increase loyalty

Increase customer lifetime value

Key takeaways

Marketing lesson:-The more relevant your message, the most valuable it becomes

Business lesson:-Customer, you already know is often more valuable than a new customers. You haven’t acquired yet.

Customer centric lesson :-Direct marketing terms, autonomous buyers into known customers

Direct marketing is art of using customer data to build personalised relationship that increase loyalty, retention, and lifetime value