Titled, Find the Right Channel Combination: What Drive Channel Choice, the ICOM survey asked 2,569 North American consumers, aged from 18 to 55, in-depth questions to determine the sources the respondents used to gather information, their preferred ways of receiving information, attitudes about various channels, and the levels of trust they place in different channels.

In general, the 2010 research validated earlier studies that found “channel fragmentation,” that is, consumers are using an increasing variety of information sources to meet their information gathering needs.  To determine why one channel may be preferred over another, the study found that factors driving channel choice include convenience, trust, concern for the environment, and robustness of content.

Epsilon also found that, despite the variety of channels available, traditional media remains consumers’ preferred and most trusted source of information.  What may seem contrary to common assumptions is that the traditional channels were also the preferred communication channels among younger adults.

Especially for household and health products, and to a lesser extent financial services, the reference among 18-34 year-olds for receiving marketing information from mail and newspapers is 2 to 3 times greater than online sources such as social media.

Preferred Method of Receiving Various Types of Information

Source: Consumer Channel Preference Study, ICOM, 2010

The ICON Epsilon report also found that the reasons direct mail remains a strong selling tool includes convenience and privacy.  When asked about the attributes of direct mail, the survey participants provided the following responses:

 Direct Mail Channel Attributes

Source: Consumer Channel Preference Study, ICOM, 2010

Direct Mail and television also out-performed email and display ads when respondents were specifically asked about their recall of credit card advertisements.

Which of the following advertising do you recall for Credit Card products?

TV Ads 33%

Postal Mail          27%

Email (Brand)     22%

Display Ads         19%

Source: Consumer Channel Preference Study, ICOM, 2010

Based on these results, ICOM concludes that many of the so-called “traditional” still do their job – in fact, this study suggests that marketers should spend more in these key areas in order to reach and influence their customers.

Commenting on the Consumer Channel Preference Study, ICOM Vice President Warren Storey stated, “Marketers targeting coveted 18-34 year olds who are tempted to invest solely in social media could be missing a significant portion of their audience.”

 “For example, a consumer goods company that relies heavily on a female audience, especially moms, within this key demographic group, could fall short of expectations if it uses only the social media channel,” Storey added.

The ICOM study may point out a discrepancy between consumer preferences and marketers who assumed that social media provides the largest audience at the lowest cost.  While marketers may have moved away from traditional marketing channels, consumers have not.  For example, consumers rank direct mail as their preferred channel for receiving information.

This means that those marketers who discount traditional marketing communications channels may be missing most of their intended audience..

Good relationships are built on trust, so it is not surprising that most consumers depend on people for information rather than the Internet.  Consumers still are most likely to trust product information delivered by family, friends and experts.

Trustworthiness of Information Services

Source: Consumer Channel Preference Study, ICOM, 2010

After experts, newspapers follow as the most trusted source of information, at 26% of respondents.

Direct mail, at 18%, ranks as consumers’ top five most trusted sources of information, well ahead of email and online forums.  Social media channels ranked the lowest for reliability as a source of information.

“For one thing, findings show that people don’t click through on advertising
on social networks. A good analogy is to imagine sitting at a table with friends
when a stranger pulls up a chair, sits down and tries to sell you something
when you are talking to your friends. You won’t get far with a strategy like this.”

—Understanding Users of Social Networks, Sean Silverstone, Harvard Business School

According to the ICOM report, men are more likely than women to prefer the Internet or email as a mode of receiving marketing information.  Financial marketers should find this particularly helpful as women tend to be the financial decision makers, or share this responsibility, to a greater extent than men.  Regardless of the demographic, the implication of this channel study is that marketers need to consider which media the consumer prefers in order to drive results.

In contemplating that broader strategy, it’s important for marketers to understand that while consumers may use many sources to gather information, when it comes to making a decision and placing trust in that decision direct mail appears to be the overall channel of preference.

Besides being the preferred channel for women, the ICOM study also found that consumers with an annual income of less than $60,000, as well as all shoppers aged 18 to 34, are more likely to say receiving direct mail from a company makes them feel like a valued customer.   And, Trust in mail, as an information source, increased 39% in 2010 from 2008

For these reasons, direct mail is still more likely than email to hit its target.

Respondents who expressed a preference for mail said they can:

• Read it when they want;
• Refer back to it as needed;
• Easily take it with them; and
• Pass to others.

According to the ICOM Channel preference study:

The perception among survey takers that they’re receiving less mail is telling. The implication for marketers is that there may be a significant opportunity to gain the attention and interest of key consumers, using the direct mail channel, given the decrease in overall mail pieces being received.

Among the consumers who choose email as their preferred information channel, they cited the following reasons:

• More information available online;
• More email is being sent than a year ago;
• They are using e-newsletters; and
• When information is need, favorite sites are available.

One of the most notable reasons given for email preference was a desire to “save on paper,” an obvious reflection of the increasing value consumers place on protecting the environment.

Source: Find the Right Channel Combination: What Drive Channel Choice, ICOM Epsilon Targeting, September 2010.