Marketing Communications

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RELATIONSHIP MARKETING 443

no marketing activities can be done via mail or phone at that address. The Advertising
Standards Authority and the Code of Practice of the DMA govern the list. In countries such
as Belgium, Spain, Germany and the UK this list is called the Robinson list. In other countries
like the Netherlands, New Zealand, Canada and the USA this list is the ‘Do not call’ or ‘Do
not mail’ list.^59 Nevertheless, research has shown that consumers are more likely to request
name removal from phone lists than e-mail lists. But on the other hand, removal from e-mail
lists was more desired than postal mail lists.^60

Relationship marketing

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Marketers still tend to spend more and exert more effort on gaining new customers than on
keeping current customers satisfied and loyal. Marketing budgets assigned to promotional
activities aimed at attracting new customers are five times bigger than the part spent on
current customers.^62 But the efforts involved in attracting new customers are much higher
than those required to keep current customers loyal. In fact, some claim that companies can
realise profit increases of 35% to 85% just by decreasing customer loss by 5%. Moreover,
as mentioned above, the profit per customer can also be assumed to increase, the longer a
customer stays with the company. This is the result of diminishing acquisition costs, lower
operational and service costs per client per year, combined with a rise in the average yearly
purchases per loyal client, declining price sensitivity and, last but not least, positive word of
mouth (more referrals) attracting new customers in a cost-effective manner.^63
In relationship marketing, a marketer’s challenge is to bring quality, customer service and
marketing into close alignment, leading to long-term and mutually beneficial customer rela-
tionships.^64 In other words, the direct marketer tries to create and maintain relationships of
value. For example, Harley-Davidson created the Harley Owners Club, which has about 1 million
members worldwide. Besides motorbikes, Harley-Davidson offers its members an insurance
programme, a travel agency, an emergency roadside service, two magazines, member com-
petitions and more than 1200 local chapters.^65

Heinz is a long-established food brand that sells thousands of food products in over 200 countries. One of its product
ranges is specifically designed for infants. Because of legal restrictions in the UK, Heinz could not talk to new mothers
about moving from Heinz milks to its wet foods and snacks for babies. Nevertheless, Heinz wanted to engage with
parents to increase awareness of these specific products. So the Heinz Baby Club was born – a club, sufficiently
different from other clubs, that aimed to become a favourite source of information about nutrition and baby care
for parents. The campaign, targeted at new parents and expectant mothers, was a cross-media campaign including
direct mail and digital marketing. Because learning to be a mother is a journey of discovery, every pack looked like an
explorer’s backpack containing relevant content, offers, vouchers, each reflecting a phase of the journey. Different
packs were developed: a Birth Pack, a Weaning Pack and a Feeding Textures Pack. Twenty-three e-mails were sent
over a period of 21 months. After 6 months, around 24 000 mums had registered with the club. The opening rate
of the e-mails was 39% with an average click-through rate of 6.3%.^66

business insight
Heinz’s baby club

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