E-mail to slash direct mail income, says Jupiter report

The commercial e-mail market will soar to an estimated $7.3bn (&£4.5bn) by 2005, cutting direct mail revenues by 13 per cent, according to a new report from Jupiter.

With research indicating that US consumers will receive 40 times more e-mail, Jupiter advises businesses to improve their outreach immediately by integrating messages across channels, building their customer lists, and incorporating feedback for improved targeting.

“E-mail is a cost-effective and high response-rate vehicle to acquire and retain consumers, sell and promote products, drive loyalty and reinforce branding,” says the report.

Jupiter senior analyst Michele Slack says: “Businesses are beginning to perceive e-mail marketing as the silver bullet for acquisition and retention strategies – it’s fast, cost-effective and provides immediate feedback. As a result, opt-in commercial e-mail is growing rapidly.”

She adds that consumers “will not have the resources or tolerance” to maintain the high response rates that are driving businesses to e-mail. Businesses must focus on delivering value from the first e-mail contact, because opt-out is “just a click away”.