Planning: Is It Time for a Renaissance?

For agencies, direct marketing is not just about keeping up with changes among consumers and in the marketplace. It means having to regularly interrogate and re-evaluate their own skills and methods of working. Developments in media, database and e-technology are increasing the expectations of customers and prospects. Competition is spiralling. Offers are diversifying. Communications are more numerous. Channels to market are more complex. Customers are more fickle. These changing market dynamics require agencies to vigorously appraise how marketing campaigns are planned and implemented.

Planning, of course, is nothing new; but it has been increasingly overlooked. As a result the capability is becoming thinner on the ground, not only within agencies, but also within client companies . Since lucid, memorable and profitable direct marketing is more than ever dependent on first class planning, the skill is fast becoming as crucial as it is scarce. It is now time for a planning renaissance. Reviving it will enhance the effectiveness of individual DM campaigns, while maximizing accurate learning to ensure long-term business objectives are met. Currently, decisions are being made where the requirements of short-term bottom line figures outweigh the requirements of long-term strategic business objectives. A key difficulty is that marketing personnel at all levels generally feel more comfortable challenging creative executions than data analysis. Response rates are falling often because creative-led communications are being implemented without the proper support of data and planning insight.

Every DM campaign must have an element of evolutionary testing no matter how tight the trading conditions of a business. Ideally, companies should set aside a sufficient budget for an additional more-radical testing stream. It is important to achieve step changes in addition to evolutionary improvements, in order to put a halt to declining DM response rates. The planning function ensures testing is rigorous by addressing a number of influencing factors--ensuring that the samples are statistically robust, that the source of data is consistent, that the elements which change in head to head tests are monitored, and that differences are pinpointed between test, validation and roll-out across all parameters--covering creative, offer, data and timing. It can then present conclusions which are meaningful, and offer proposals for significant changes. Here are some examples of analytical questions that need to be asked to ensure correct decisions are made in evolving a long-term strategy:

• What other surrounding "noise" is prevalent both within and outside the client's control at test and roll-out stages?

• How intensively has the company's and competing companies' prospect lists been mailed subsequent to test?

• Has the follow up been consistent in a two-step offer that requires outbound telemarketing and/or fulfilment packs be sent?

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