DMIS anticipates increased use of DM by telecoms sector

by Daniel Farey-Jones, Brand Republic 26-Apr-05, 07:00

LONDON – Marketers facing increasing competition in the telecoms sector should investigate direct mail's potential for improving customer loyalty, the Direct Mail Information Service has advised.

According to DMIS research, more than one third of consumers want to change their telecoms supplier.

DMIS took a survey of consumers to see what suggestions they had as to how suppliers could increase the likelihood of their future custom.

Four out of 10 consumers said they would use their supplier more in the future if it lowered their prices, but none said that a loyalty scheme would appeal to them.

New entrants to the telecoms sector have already had an impact on pricing. Operators such as Carphone Warehouse cut prices in response to the launch of easyMobile's SIM-card only pay-as-you-go service in March.

O2's new strategy focuses on keeping its existing customers loyal. It has pledged to give pre-pay customers 10% of their top-up payments back every three months, and is offering 50% extra text messages and calls for life to post-pay customers who have been with the network for more than a year.

DMIS said that a quarter of consumers have not yet been mailed by any telecoms company, providing a big opportunity to win them over.

It also pointed out that 59% of consumers who received direct mail from their supplier said it made them more likely to use that company again, while 44% of consumers made a purchase after receiving a mailing from a company they had previous contact with.

Only 15% of consumers receive monthly mailshots, with the commonest frequency being quarterly.

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