Electoral roll fear for direct marketers
May 21 2002
The direct marketing industry is facing potential increases in costs and a loss of effectiveness if proposed changes to the electoral roll go ahead, says the Direct Marketing Association (DMA).
Draft regulations for the use of the electoral roll, which were recently unveiled by the Government, propose introducing a second version. This second version would be the one that would be available to commercial organisations.
However, it would be much less complete for marketing purposes as voters would have the choice of removing their names if they did not wish to be targeted by businesses involved in direct mail.
The DMA, which describes the electoral roll as "vital for maintaining high levels of accuracy," predicts that restricting the use of it will result in a "deterioration of standards and an increasing amount of poorly targeted information." This in turn will lead to wasted money spent targeting inappropriate consumers. A recent survey of DMA members concluded that it might cost the industry around £240 million a year.
According to Lara Shannon of the DMA, smaller marketers are likely to be harder hit than larger companies. Shannon believes that the alternatives to the electoral roll for smaller operators are more expensive and that the expected reduced accuracy of mailings would cause a smaller firm to "lose competitiveness."
To raise awareness of the problems surrounding this issue, the DMA is encouraging the publication of an accompanying leaflet for the general public, which fully explains the "opt-out" issue.
Small marketing companies that believe they may be adversely affected by the proposed changes, or who wish to keep abreast of developments, can view the DMA’s response to the draft regulations, and related information, at www.dma.org.uk.
See also Marketing.
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .
(16/5/02)