HOW TO DM – Direct Marketing for Beginners and Advanced

Although in Croatia advertisers do not use clever tricks like the American security systems company ADT Security Systems or the Italian laundry service LavOnline when it comes to direct marketing, they agree that without it, connecting with customers would be more difficult. Americans, for example, have designed boxes that can be slid under front doors or through mailboxes, which can then inflate themselves to full size, demonstrating how easy it is to break into American homes.

Italians, on the other hand, raised awareness about laundry services by sending cardboard boxes with a toy tomato made of special material. The boxes could dissolve into a white t-shirt onto which the tomato was thrown, dirtying it, and when the tomato returned to its original shape, the t-shirt was clean again. Croatian companies, however, prefer to stick to messages, newsletters, applications, and social media, noting that they always respect the privacy of parties according to the General Data Protection Regulation.

Effectiveness of After-Sales

At Toyota Croatia, direct marketing is regularly used because it allows for quick and easy communication with clients, promotion, and sending personalized messages in a short time, with relatively low costs and quick feedback on effectiveness, emphasizes Zdravko Šplajt, the after-sales director at the company. In a short time, it is possible to correct or adjust the message according to customer needs, and Šplajt notices the greatest effectiveness in after-sales or service services and programs.

– For sending messages via newsletters, we most often choose channels such as direct mail or SMS. However, sometimes that is not enough, so we combine direct marketing with digital advertising on social media, focusing on precisely defining the profile of message recipients to increase effectiveness. The latest campaign example is informing all Toyota vehicle owners that we have just started providing the ‘RELAX up to 10 years warranty’ service in Croatia, which can also be activated on older, used vehicles that are out of the manufacturer’s warranty period. We send direct mail to a database of clients for whom we have consent and who have rated our information about service improvements, new warranty conditions, and promotional or special offers as useful or valuable – explained Šplajt.

Applications for Youth

The advantages of direct marketing are numerous – from the ability to precisely segment customers to the ability to measure performance and results in real-time, agrees Ivan Horvat, marketing and public relations manager at dm. Along with digital direct marketing, which includes newsletters, the dm active beauty program application, social media, and the website, tools also include informational flyers and brochures as well as coupons for multiple points sent to the home addresses of loyalty program members, explains Horvat.

– Almost 80,000 customers visit dm stores every day, where our employees are key for directly informing customers about offers, products, and benefits. Some customers respond best to offers sent directly to their email addresses, while others prefer offers by mail. For younger customer groups, smartphone applications and social media are crucial, as well as their integration with the dm online shop. It is essential to set up all direct marketing tools from the beginning to offer customers and potential customers complete and accurate information. According to dm’s experience, the most successful direct marketing is the one tailored to the individual needs of recipients. Here, dm’s birthday card sent by mail and as part of the e-newsletter stands out, through which we send members of dm active beauty a coupon for earning 10 times more points on total purchases. Thus, dm directly communicates with pregnant women and mothers, providing them support, even gifts, during pregnancy and the first months of parenthood – said Horvat.

Direct Artificial Intelligence

For Petra Bašić Jantolić, executive director of Client Business Development at Addiko Bank, the greatest benefits are precise targeting, simpler content adaptation, personalized approach, and measurability. According to her, the best effect of direct marketing is achieved in synergy with other forms of marketing communications or through multiple channels of direct marketing, such as e-newsletters combined with messages through mobile applications. Therefore, Addiko Bank primarily uses e-newsletters, SMS and Viber messages, direct contact, digital tools on websites and social media such as contact forms, chatbots, interactive banners, direct call options, or direct appointment scheduling at branches, and so on.

– Clear, simple, and constant communication is crucial for good results. Tools that allow for direct and quick reactions to received content, such as the ability to immediately activate a product or service, also help. This is aided by the Addiko Virtual Branch, where users can submit a loan application or open an account from their home or on the go. Younger people respond better to e-newsletters, while those slightly older prefer SMS messages. Ethical behavior and communication also build credibility and trust in the company. It is important to allow users to choose the content they want to follow, and even to unsubscribe from receiving direct messages – notes Bašić Jantolić.

The future of direct marketing is enhanced by technological development, and if we add the possibilities of artificial intelligence, Bašić Jantolić expects a real revolution in direct marketing. The Addiko assistant on the web-sites of Addiko Bank, launched in 2016, was one of the first virtual assistants successfully used by a Croatian company.

The Greatest Reach – Coupons

Konzum also considers direct marketing extremely effective and has been using it for years. Its example is the MultiPlusCard, the central year-round loyalty reward program for Konzum customers, which is also the largest loyalty program in Croatia, with a million users, launched 11 years ago with Zagrebačka Bank. The direct advertising tools it uses are coupons on receipts, coupons on the contactless mobile application, and the Viber messaging application. The greatest reach is recorded with coupons on receipts, with the highest utilization being those for a 10 percent discount on total purchases, but Konzum notices that trends are moving towards increasing use of the mobile application.

SMS is often a good communication channel because in that short form, the desired message can be clearly conveyed to users, believes Marin Labudović, head of the Customer Management Department at A1 Croatia. Through a link in the message, it is possible to visit a specific web-site where more information about the offer can be found. They use email and the My A1 application, he says, and all the mentioned channels can function independently or be part of a digital marketing campaign.

Cautious with Reputation

A1 Croatia also uses letters, although to a lesser extent in recent years, as they are difficult to measure, Labudović added. There are also phone calls and door2door agents who visit users in their homes.

– Two years ago, A1 Croatia also introduced the Virtual Shop, a combination of digital communication and conversation with an agent. Communication takes place via video link from the Virtual Shop, and the user does not need to have a camera. At the A1 Group level, there is a large Marketing Automation project, which includes new tools for automating direct channels – Labudović recalled.

According to him, it is important to be present but moderate so as not to overwhelm users with messages, which can also affect reputation. It is also crucial to carefully select the user base to which clear and concise messages are addressed at a given moment. In direct marketing, Labudović claims, it is necessary to know the user, offer them what they need, and contact them through the channel they choose themselves. 

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