Marketers still not sure how to fully exploit the digital channel

Making more effective use of digital channels is the key challenge for UK marketers this year, according to new research from Experian, with improved targeting and access to internal resource being the major drivers for digital success.

The research, which polls the views of senior marketers across a range of major market sectors, revealed that although investing in digital was a priority, many marketers do not fully understand how best to exploit the channel.

Making better use of digital channels was a high priority for 85% of respondents, a clear demonstration of its accepted role in the marketing mix. However, 74% claimed to want to use digital channels even more effectively.

Digital now encompasses everything from email to banner advertising to video and social networks, and not all mediums are right for all advertisers.

While 70% of respondents cited customer retention as a high priority for 2010, 58% said the main focus for the year is customer acquisition. And those organisations ramping up acquisition activity are doing so in an increasingly targeted fashion, applying insight to add greater intelligence to making selections and developing relevant messages.

Two thirds of marketers plan to focus on trigger-based activity to drive contacts with more timely and relevant offers, while 83% want to use customer insight to target new customers more effectively.  

Jim Hodgkins, managing director of Experian Marketing Services, says that the degree of personalisation and up-to-the-minute relevance possible via digital channels means using deep customer insight to get targeting right will be one of the key drivers of digital success in 2010.

Yet the focus on digital coupled with a desire to use digital channels more effectively highlights the need for marketers to really understand and drive value from such channels – not simply engage with them because of perceived competitor peer pressure.

What marketers should be focusing on is understanding which channels work for the individual customer and using this data insight, combined with marketing platforms and analytics, to create integrated marketing campaigns that blend the use of traditional and digital channels appropriately, adds Hodgkins.

It is clear that marketers continue to face significant challenges in 2010, with two thirds claiming to be under pressure to deliver results with lower budgets. 

However, a greater challenge is the availability of skilled internal resource – an issue that could impact on marketers’ digital aspirations. Sixty three per cent of respondents felt a lack of internal resource could limit their ability to deliver against objectives, indicating that the effects of cutbacks within marketing departments are continuing to be being felt.

Hodgkins said, “Despite the fact that there’s evidence of a slight recovery in marketing budgets and spend for 2010, many marketers are still facing resource challenges. This squeeze on resources could threaten drives to use digital channels more effectively or see marketers looking to automate operational aspects of the marketing process and turn to external consultants to support key projects.”