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E.piphany research highlights the need for individual customer strategies

Announcement posted by E.piphany 06 Jun 2002

Reveals banking, telecommunications, insurance, utilities, travel and leisure industry-based customer preferences
Research commissioned by E.piphany has highlighted the need for companies to employ individual customer strategies to reach their target audience. The research released today sought information into customer attitudes to outbound customer contact activities in six major industry segments: Banking, Telecommunications, Insurance, Utilities, Travel and Leisure. The method of contact surveyed included traditional post, telephone contact, email and SMS.
The survey revealed a wide variety of other preferences across different market segments and demographics, meaning companies should not expect any particular channel approach to provide guaranteed returns across the customer base. According to E.piphany, this underscores the enormous opportunity for marketers who cater for the individual preferences of customers.
Key findings from the research include:
Telco is the only industry sector in which email rates a score as the most preferred method in any segment. Telco customers are the most open to receiving information via SMS with 11 per cent preferring this method of contact - a total of 1,200,000 people.
Whilst email and telephone contact are almost level in terms of how customers like to be contacted by banks - traditional post is still twice as popular. SMS is making inroads, although it is yet to be a significant marketing vehicle.
The adoption of technology in the travel and leisure industry through online travel and holiday bookings is apparent with one quarter of respondents indicating that they would prefer to receive promotions and special offers from these companies via this medium.
Email and SMS were far more accepted where there is an existing customer relationship - making them very appropriate tools for building and maintaining customer relationships as opposed to prospecting for new customers.
Of all the segments reviewed, Insurance company customers most prefer the 'hands off' approach with the majority wishing to receive information via traditional post. 88 per cent of respondents indicated that even in the circumstance of changes to existing accounts, preference was still notification through traditional post.
In terms of banking customers, the more affluent the customer, the more accepting they are of email communication as the preferred mean of contact for special offers. Geographical location is not typically a factor, however in this circumstance NSW residents are one third more likely to chose email than Victorians.
Traditional post is the most preferred method of contact across all markets segments
"With more than $13 billion spent on direct marketing in Australia annually, incorrect targeting not only wastes money through ill-planned campaigns but can leave the customers' value requirements - whatever they may be - to be fulfilled by your competition" said Chris Ciauri, vice president and general manager E.piphany Asia Pacific.
"Smart analytical tools provide companies with the ability to better target campaigns matching offers with those people most likely to accept, this not only increases revenue it also reduces the total campaign cost and cycle time, thereby addressing both sides of the ROMI (Return on Marketing Investment) equation. This information is invaluable to marketers within the major industry groupings. However, the really valuable information about customers' channel preferences lies at the individual level. It is clear that other than the preference for post and email, there is no one method of contact which will suit all, " continued Mr Ciauri.
For further information and findings, please contact Kirsten Ackroyd/Peter Sertori on 02 9904 4533 or at pr@howorth.com.au
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About E.piphany
E.piphany provides Smart CRM(tm) solutions for the largest global enterprises. The company's integrated CRM suite, E.piphany E.6, is driven by real-time intelligence to enable global businesses to better understand their customers and take the optimal action to improve customer satisfaction, increase revenue and reduce costs. E.piphany's Smart CRM system is built on the industry's most advanced, Web-based, CRM platform, resulting in fast and easy deployment and adoption. Leading companies, including more than 35% of the Fortune 100, use E.piphany products to enhance their customers' experience, enable organisational effectiveness and drive value. With worldwide headquarters in San Mateo, California, E.piphany has regional operations and offices throughout North America, Asia Pacific, Europe, Japan and Latin America.
E.piphany's Australian offices are located in Sydney and Melbourne. Further information can be found on www.epiphany.com