Survey: CPGs Underutilize E-mail Marketing.(consumer packaged goods industry, electronic mail marketing)(Brief Article)(Polling Data)(Statistical Data Included)

Author/s: Jennifer Owens
Issue: May 7, 2001

More than two-thirds of consumers said they don't mind receiving e-mail messages from packaged goods companies. However, only one-third of manufacturers currently conduct e-mail marketing.

This e-mail marketing gap looms large in a new survey released this week by Information Resources Inc., a Chicago-based research group serving the consumer packaged goods industry.

Take, for instance, the messages being e-mailed by manufacturers: According to the survey, only 8 percent of consumers said that the information they received from a consumer packaged goods company was valuable to them. And only 7 percent believed e-mail marketing has favorably changed their perceptions of a company or its brands.

So what do consumers want in an e-mail marketing message? According to the study--which consisted of surveys of more than 7,900 primary shoppers and interviews with more than 75 consumer packaged goods manufacturers and retail executives--most consumers appreciated content with tangible benefits, such as coupons and recipes. Only a mere 4 percent said they are interested in receiving e-mails featuring customer testimonials.

"Our study shows that e-mail campaigns are a highly underutilized Internet marketing tool for consumer packaged goods manufacturers," said Brian Murphy, who serves as partner in IRI's e.Ventures group. "However, as more brand marketers adopt this communications vehicle, they should be careful to provide consumers with e-mail content that is relevant to them."

The study found that 50 percent of the CPG companies surveyed plan to increase their use of permission-based e-mail marketing within the next year.

Meanwhile, as more traditional brands move their marketing efforts to the Web, IRI also found that 68 percent of online consumers are aware of CPGs banners, but only 26 percent said they have ever clicked on one. In contrast, at least 40 percent of consumers surveyed said they have participated in online promotions featuring sweepstakes, free samples and coupons.

Even with low clickthrough rates, said Murphy, "banner ads play an important role in online marketing, as they drive high awareness among consumers."