A survey shows that the tough economic climate is leading more than half of companies to spend more on customer research, and to spend less on traditional advertising.
Seventy percent of top marketing executives from 44 US-based software companies who were interviewed in a survey say that their companies are planning to increase their Internet marketing efforts. Only 5% will spend less money in this area in 2002. This is revealed in a survey - What Matters Most when Marketing in a Tough Economy - jointly conducted by Smith & Suita and Marketwise Innovations.
Must be measurable
As a result of the contracting economy, many face reduced marketing budgets and increased pressure to make each dollar spent accountable, so preference is often given to marketing activities that can be easily measured and tracked.
Online direct mail favoured
Respondents said that online direct mail is also becoming increasingly important, citing its lower cost, quicker response time and targeting flexibility when compared to print mail. More than half of the companies interviewed plan to decrease their spending on traditional advertising in 2002. Only 27 percent plan to increase their advertising budgets. Exhibiting at large national trade shows is less popular than in the past, due to what many respondents notice as a general drop in show attendance and their perceived lack of return on investment
Spend more on customer research
The good news for the CRM market is that more than half of the respondents plan to spend more on customer research in 2002 to learn more about their prospective clients and the issues and challenges they face in their industry. According to Carol Monaco, Marketwise Innovations' president, "Companies are putting their money where their mouth is and are backing up 'customer-focused' claims with more research, user groups and customer advisory panels."
The complete 40-page study is available at $499 from Smith & Suita.