22-11-2007

Caution urged over direct marketing-related outsourcing

News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.

Businesses have been urged to show a degree of caution when outsourcing database management in matters relating to direct marketing.

Ray Jones of the Chartered Institute of Marketing, an international organisation specialising in business development and marketing, said he believes that businesses should show caution when entrusting customer databases to third parties, as such action can be "risky".

Direct marketing is a form of promotion that attempts to target its consumer-orientated messages in a direct fashion, without the use of an intermediary media format.

"Your database information is vital and to give it away or entrust it to somebody else is risky; you really should think about the ramifications of that," said Mr Jones.

"I'd be very cautious about outsourcing your database maintenance and management. That is your key differentiator; your database and your customers," he added.

Interestingly, data released by International Communications Research has found that while 18 per cent of respondents would be happy to receive marketing information via email, a majority (73 per cent) would prefer to receive such information via post.

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