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REPORT: E-MAIL EFFECTIVE FOR CUSTOMER RETENTION, SALES

Not Useful for Attracting New Customers, DMA Survery Says

By Published on .

CHICAGO (AdAge.com) -- Although many marketers cut back traditional media budgets last year, an increasing number used e-mail marketing to retain customers and drive sales, according to the Direct Marketing Association.

Those findings, released today, are part of the DMA's State of the E-commerce Industry Report 2001-2002, which was done in conjunction with the Association of Interactive Marketing.

The two groups surveyed 700 companies involved in direct and interactive marketing.

E-mail marketing promotions led to an increase in sales for 66% of respondents, and 63% said e-mail was the most effective customer-retention tool. E-mail is less effective for customer acquisition, however, with only 37% of respondents indicating its usefulness in attracting new consumers.

Respondents also identified e-mail as a cost-efficient medium: investing only 13% of their total marketing budgets in e-mail generated 15% of total net interactive sales.

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