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CRM investment is wasted if the intelligence it delivers fails to influence despatched communications. How can businesses ensure that money spent on CRM analytics actually begins to benefit the messages that are delivered to customers and prospects?
David Jefferies, Marketing Director, Pitney Bowes
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Andy Wood, MD, GI Insight
How do the data security requirements for credit card transactions affect my contact center operations?
John P. Joseph, VP Corporate Marketing, Envox Worldwide
CRM relies on trust between business and customer. Consumers are constantly asked for personal information from a wide range of organisations, but who are the industries most trusted by UK citizens to safeguard this data? And which sectors must work harder to earn this trust?
David Jefferies, Marketing Director, Pitney Bowes
How can I reduce the risk of a security breach when a customer calls?
John P. Joseph, VP Corporate Marketing, Envox Worldwide
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Customer Relationship Management (CRM) Today - Experts Corner Customer Relationship Management (CRM) Today - Highlights

Ian Hubbard, Director, Data Services, CDMS

You Asked
“What are the benefits of campaign management outsourcing and to what extent do companies invest in it?
 
The Expert's Answer

UK plc has long outsourced data processing tasks, but the increasing complexity of modern direct marketing campaigns has meant effective campaign management must now underpin the entire marketing effort.

Campaign management embraces; identifying targets; compiling a list of contact details; suppressing people who have moved, died or refused contact; producing the creative piece(s); sending the right messages to the right people and closing business with people who respond. Given the intricacy of today’s campaigns, we decided to quantify the trend to outsource this fundamental process and analyse the motivating factors.

Currently over a third (38.7%) of top UK companies outsource the entire campaign management process, with the exception of creative design. This trend is expected to continue to rise, with almost half (48.6%) of larger businesses outsourcing the bulk of their direct marketing campaigns by 2007.

Examination of the outsourcing trend on a sector-by-sector basis revealed those that had invested heavily in CRM/loyalty systems and that were mature direct marketing practitioners, outsourced more of their campaign management processes.

Banks and Retailers are the highest users of campaign management outsourcing, in the 44-45% range. At the next level we have Insurance and Travel & Leisure in the 36-37% bracket. The lowest user of outsourced campaign management was the Utilities sector at 31%.

The overwhelming conclusion of our research is that companies often do not have the skills and experience in-house to ensure that their technology investments deliver the requisite ROI. Respondents cited ‘highly skilled personnel’ as the top factor in the decision to outsource (importance score of 74%). ‘Access to the latest technology’ followed, scoring 70.7%.

Other benefits include reduced headcount, scaleability, compliance with privacy legislation was and the fact that no capital investment is required. Utilising outsourced specialists also allows in-house marketers to dedicate their time to strategic development work or refined model development.

Since many of the skills involved in extracting commercially productive insights from campaign processing are rare, this is clearly the driving force in the trend to outsourcing these DM fundamentals to third party experts.

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