State of B2B Direct Marketing

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State of B2B Direct Marketing

• Presented to the BMA Norcal Chapter
• August 24, 2005
• Moderated By
• Laurie B. Beasley,President, Beasley Direct
  Marketing, Inc.
• Panelists
• Bill Mirbach, Vice President of Direct Marketing,
  Intuit
• Katherine Van Diepen, Director of Marketing,
  Anritsu Corporation
• Erin McCart, Senior Marketing Campaign Manager,
  EMC Corporation

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Agenda -

• 1145 am 130 pm
• Direct Marketing Industry Perspective
• Presentations by our Panelists
• Bill Mirbach, VP of Direct Marketing, Intuit
• Katherine Van Diepen, Director of Marketing,
  Anritsu Corp
• Erin McCart, Marketing Campaign Manager, EMC
  Corp.

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145 Direct Mail Workshop

• Direct Mail Formats that Work And Why
• Where to Start Regardless of the Media
• Creative Testing What Works and Why
• Getting Through to the CXO Audience
• What To Do When the Product is Newor so-so
• Email Made More Effective Youre going to send
  them along with your direct mail, right?
• Print Ads, etc.

4

• Is Email or Direct Mail Getting a Better
  Response?
• .Neither!

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Industry Perspective

• While Internet gets a lot of attention, and
  e-Mail is a hot topic...
• Telemarketing dominates B2B marketing response to
  house files and prospecting isnt much
  different
• Telemarketing 6.44
• Email 5.93
• Dimensional Direct Mail 5.53
• Flat Direct Mail 3.10

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B2B Lead Generation Results by Media
7
Advertising Spending (and Projection)
8
Highlights from the DMA 2005 Postal and E-Mail
Marketing Report

• Postal Mail on the Upswing.
• Interestingly, the of marketers in 2004 who
  planned volume increases for direct mail (64)
  almost matched results from DMAs 1998 survey
  prior to economic downturn in which 67
  predicted increases.
• A Perspective on Postal vs. E-Mail Qty
• Postal mail 3 million pieces annually
• E-Mail 1 million messages annually

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Highlights from the DMA 2005 Postal and E-Mail
Marketing Report

• Use of Outside Prospecting for Postal Mail
  Returns to Pre-Economic Downturn Levels.
• Outside list usage growth 28.4 in 2002 36.3
  in 2003, and to 45.8 in 2004.
• Marketers Grow Much More Conservative of Outside
  E-mail Lists.
• List quality and drop in response rates given as
  reasons for hesitancy to use outside e-Mail
  lists.
• E-Mail Postal Housefiles Much More Actively
  Used.
• Cost effectiveness of housefiles and the ability
  to segment by recency, frequency, and monetary
  value (RFM) listed as reasons for increase.

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Highlights from the DMA 2005 Postal and E-Mail
Marketing Report

• Recent Postal and E-Mail Response Performance
  Results Show Significant Improvement
• For postal mail the turnaround started in 2003,
  as 42.8 of respondents reported increases in
  up-front performance over the previous year, and
  52.4 reported increases for 2004.
• For e-mail, the percentage of respondents who
  reported increases in up-front response
  performance grew from 35.2 in 2002 to 42.7 in
  2003 and 51 for 2004.

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Highlights from the DMA 2005 Postal and E-Mail
Marketing Report

• Conclusion Aggressive Plans to Increase Postal
  Mail and e-mail Volumes for the Purpose of
  Generating Orders, Leads, We, and Retail Traffic.
• See Chart on Next Page

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Comparison in Intended Purposes for Postal and
e-Mail
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Cost Per Lead Often Compells the Media Choices