Price-conscious customers respond to direct mail
Still reeling from the effects of the 2008 financial crisis, some families find themselves in financial dire straights. As a result, consumers these days are keeping a much tighter grip on the reins of their personal financial situations.
In a new study published by customer science firm Dunnhumby, consumers were separated into four sub-categories determined by their purchasing behaviors as they related to price. They were: least price sensitive (LPS); splurge and save (SS); price sensitive (PS); and very price sensitive (VPS). Families or individuals listed as VPS were found to be the most likely to use coupons sent to them via direct mail, with 15 percent redeeming coupons for a single brand mailer and more than 35 percent for a multiple brand mailer. In nearly all types of products, including broad appeal and upscale, VPS consumers were universally established to be the most significant demographic in terms of potential sales uplift.
With 52 percent of consumers agreeing price is more important than brand names when making purchases, coupons and other money-saving offers have become a much more vital part of marketing strategies. By using a combination of address verification and mailing software, firms can ensure their direct mail campaigns are efficient and accurate.