When do direct mailings create value for companies? Implications of an experimental study in consumer goods markets.

Apart from acquiring new customers, instruments of direct communication also aim at intensive customer service to increase the loyalty of existing customers. In this context, an important question arises: under what conditions can direct mailings generate value for companies? By means of experimental research, the present paper wants to gain knowledge about the changes in customer attitude and loyalty when direct mailing is applied in the context of contractual continuing obligations in consumer goods markets. The findings shall allow an answer to the question, under what conditions direct mailings can create values for companies. It has, for example, turned out that knowing the customers’ attitudes is a key factor when applying direct mailings insofar as it influences their content design and objectives, and thus the company’s potential value enhancement decisively. Moreover, it has also become manifest that even with direct customer approach, wastage with regard to contents can occur, challenging the application of direct mailings from a value creation point of view.