Benhart Associates/DMA Employment Outlook Report
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Benhart Associates/DMA Employment Outlook Report

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In 2009, The Direct Marketing Association partnered with Bernhart Associates to produce the Employment Outlook Report, the first comprehensive look at employment and talent management trends in ...

In 2009, The Direct Marketing Association partnered with Bernhart Associates to produce the Employment Outlook Report, the first comprehensive look at employment and talent management trends in digital and direct marketing.

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    Benhart Associates/DMA Employment Outlook Report Benhart Associates/DMA Employment Outlook Report Presentation Transcript

    • Direct Marketing Employment Overview ReportIn partnership with: Bernhart AssociatesExecutive Search, LLC Page 1
    • Direct Marketing Employment Overview ReportCopyright © February 2009 by Direct Marketing Association, Inc.All rights reserved for all DMA’s reports and publications. No part of any report purchased from DMA maybe reproduced, stored in retrieval system, or transmitted, in any form or by any means, electronic,mechanical, photocopying, recording, or otherwise without the prior written permission of the copyrightowner.DISCLAIMER: DMA does not make any warranties, express or implied, as to results to be obtained fromthe use of this report data. In no event shall DMA, its affiliates, or any other entity involved in providing thedata herein have any liability for lost profits or for indirect, special, punitive, or consequential damages, orany liability to any third party arising out of the use of this data, even if advised of the possibility of suchdamages or liability. All disclaimers herein shall not be applicable to liability that cannot be waived underState or Federal law. Page 2
    • Table of ContentsAbout Our Marketing Partner …......…………...……………………………...… Page 4Executive Summary…………………………...……………………….…............. Page 5Chapter 1: Staffing Needs.……..……………….... ..………………..…………… Page 11Chapter 2: Employee Compensation…………………………………………..… Page 28Chapter 3: Recruitment of Direct Marketing Employees………….................... Page 38Chapter 4: Hiring Incentives.…………...………...………………….......…....…. Page 45Chapter 5: Respondent Profile…..…...………...………………….......…....…… Page 64 Page 3
    • About Our Marketing PartnerBernhart Associates Executive Search, LLC is a nationally recognized and leading direct marketing recruitingfirm, concentrating for nearly two decades in senior level direct marketing positions, including E-Commerce,Database Marketing, Customer Relationship Management, Quantitative Analysis, and Sales/BusinessDevelopment.A sought after speaker and viewed as a leading authority on issues related to direct marketing recruiting andtalent management, Jerry Bernharts articles, features, and interviews appear frequently in all leading offlineand online direct marketing trade publications and newsletters including DIRECT (Contributing Writer),DM News, Multichannel Merchant, Target Marketing, Catalog Success, Marketing Sherpa, BtoB, EM + C,DMA’s 3D, the American Marketing Association, and many more.In 2005, Jerry Bernhart was featured on the cover of Target Marketing Magazine about the trends shapingthe way direct marketers do business. Hundreds of prominent direct marketing companies, including end-users, agencies, and service providers, participate in the Bernhart Associates Direct Marketing EmploymentSurvey. Since 2001, it has been the most widely followed and quoted employment survey for directmarketing. Jerry speaks frequently for direct marketing organizations throughout the United States and iscurrently writing a book on career opportunities in direct marketing. Page 4
    • Executive SummaryDMA is pleased to have worked with Bernhart Associates Executive Search, LLC on this new report thatfocuses on the current state of hiring within the direct marketing arena. A special “thank you” is in order forJerry Bernhart, Principal, Bernhart Associates for his invaluable contribution to this report. He providedextensive input on the survey document as well as commentary based on his knowledge of the nuancesregarding direct marketing employment patterns. We are very grateful for his assistance and hope thatreaders of this report will benefit from his insights.Objectives:•This study builds upon a quarterly hiring practices study conducted by Bernhart Associates since 2001. Theintent of the Direct Marketing Employment Overview Report is not only to complement this existing research,but to provide a broader look at hiring and compensation issues facing direct marketers in this turbulenteconomy.•This report has two main objectives: – First, this research intends to provide current benchmarks on direct marketing hiring and compensations issues. – Second, this report seeks to convey best practices. Bernhart Associates Executive Search, our partner in this research study and an expert in direct marketing hiring practices, provides their insight into the findings presented in these pages by drawing on their expertise and experience. Where relevant, their comments can be found in the chapter highlights sections, as well as throughout the chapters themselves (note that Bernhart Associates did not contribute any commentary to the chapter that describes the survey respondents). We maintain that the experience of Bernhart Associates provides a guide into those practices they find to be most successful and therefore may be viewed as best practices in this discipline. Page 5
    • Executive Summary (Continued)Methodology:• This report expands upon a quarterly employment study that has been conducted by Bernhart Associates Executive Search, LLC for the past eight years.• The questionnaire for this report was deployed through email invitations sent in January 2009 to two lists: approximately 13,000 direct marketers were invited by DMA, and another 5,000 invitations were sent by Bernhart Associates to a separate group of marketers.• Survey respondents answered the survey online, with the average respondent taking about 10 minutes to complete the questionnaire. Respondents were offered a free summary of some key findings as an incentive to take the survey.• In all, 264 responses were received. Page 6
    • Executive Summary (Continued)Survey Responses:• Not all of these respondents answered every question. The number of respondents answering a particular question or providing a set of responses can be found by referring to the “n” on that page.• The base may change from question to question. Some questions can only be logically asked of some subsets of respondents. For example, respondents who indicate that their companies were planning to add to staff were not asked questions relating to a reduction of staff. Further, not all of those who completed the survey answered every question, in part because while some questions were mandatory, others were optional.• Some questions allow for only a single response, while others allow for multiple responses. In cases where the respondents can only provide one answer, the total response should equal 100%, although in certain cases the responses may not exactly equal 100% due to rounding. For those questions where multiple responses are allowed, the total number of replies will typically exceed 100%. Page 7
    • Executive Summary (Continued)Key Findings:Chapter 1: Staffing Needs• Under half (43.2%) say that their company will employ about the same number of DM staff in the first quarter of 2009 as in Q4 2008.• Half of the companies surveyed (48.5%) expect to make no changes in their hiring in Q1 2009.• Many of those companies that plan to add to staff in the first months of 2009 report that these jobs will be new positions only (43.6%).• Two-thirds (66.0%) of those companies that plan to reduce staff in the first months of 2009 report that such reductions will be made through a combination of layoffs and attrition.• Just under half (47.9%) of respondents report that their company has a hiring freeze in place.• Three-quarters (74.0%) of those surveyed say that the average tenure of their direct marketing staff is at least three years.Chapter 2: Employee Compensation• Most (55.8%) of the companies surveyed pay their entry-level direct marketing staff between $30,000 - $44,999.• Most companies (59.4%) will sometimes break compensation ceilings when recruiting or to keep direct marketing talent.• Two-thirds (66.2%) of those surveyed expect no change in their salaries for new direct marketing hires over the next 12 months.• 31.2% of the companies surveyed did not award bonuses in 2008, while 28.1% gave bonuses consistent with those given in 2007. Page 8
    • Executive Summary (Continued)Key Findings:Chapter 3: Recruitment of Direct Marketing Employees• The large majority of companies surveyed fill a direct marketing job within four months.• 64.5% direct marketers surveyed report that it is at least somewhat difficult to identify qualified candidates for their open direct marketing jobs.Chapter 4: Hiring Incentives• Incentives that involve flexible work schedules or time off are among the most commonly used to attract direct marketing job candidates, including flexible hours (76.0%), ability to telecommute (70.0%), and more time off from work (62.0%).• Financial incentives are also key, with half or more offering higher bonuses (67.5%), earlier reviews (58.5%), or more help with relocation costs (49.5%).• The hiring incentives involving financial incentives such as special bonuses, stock, or help with relocation, as well as those offering more flexibility in work schedules or paid time off, are viewed as being the most effective in attracting direct marketing talent.Chapter 5: Respondent Profile• 62.9% of survey respondents hold a job title of vice president or above.• About two-thirds of those surveyed say that their companies derive most of their revenue from direct marketing.• Just over a third (37.6%) of those surveyed indicate that their organizations market primarily to consumers, while a slightly smaller number market mainly to businesses (32.9%).• Just under half (46.2%) of the respondents say that their organizations are Marketers.• Three out of five (60.8%) survey respondents work for a company with no more than 200 full-time staff members.• Annual revenue is under $50 million for just over half of the respondents’ companies. Page 9
    • Executive Summary (Continued)Acknowledgements:• DMA would like to offer its thanks to the hundreds of survey respondents who took the time to complete the questionnaire. This report would not have been possible without their contributions.For More Information:• To learn more about DMA research, please visit our website: www.the-dma.org/bookstore• If you have any questions about this report, please contact the author: Anne B. Frankel Senior Research Manager Direct Marketing Association afrankel@the-dma.org Page 10
    • Chapter 1:Staffing Needs Page 11
    • Chapter 1 Findings• Under half (43.2%) say that their company will employ about the same number of DM staff in thefirst quarter of 2009 as in Q4 2008.• Half of the companies surveyed (48.5%) expect to make no changes in their hiring in Q1 2009.• Many of those companies that plan to add to staff in the first months of 2009 report that thesejobs will be new positions only (43.6%).• Two-thirds (66.0%) of those companies that plan to reduce staff in the first months of 2009 reportthat such reductions will be made through a combination of layoffs and attrition.• Just under half (47.9%) of respondents report that their company has a hiring freeze in place.• Three-quarters (74.0%) of those surveyed say that the average tenure of their direct marketingstaff is at least three years. Bernhart Associates Key Insights:• The percentage of those planning to add to staff stands at an all-time low during the eight yearsthat Bernhart Associates has been tracking direct marketing employment, and this number hasdeclined for the past six consecutive quarters.• The fact is, hiring in direct marketing goes on. It appears that in many situations, positions leftvacant are being redefined or combined with other roles, sometimes as part of a reorganization,to create new positions with new titles and job descriptions.• The most significant change recorded for Q1 was in hiring freezes. That percentage soared to48% for Q1 2009. Uncertainty about when the hiring freeze would end can be attributed to thelack of ability to foresee short-term business conditions as direct marketers enter 2009. Page 12
    • A Minority Say the Number of Direct Marketing Employees Will Increase in Q1 2009 Compared With Q4 2008 Under half (43.2%) say that their company will Number of Direct Marketing Employees in Q1 2009 Compared With Q4 2008 employ about the same 50 number of DM staff in the 43.2 first quarter of 2009 as in Q4 2008. 40 Percentage of Respondents To put this in perspective, the same number of 30 26.5 respondents (43.2%) say that there will be fewer 20 16.7 DM employees than in the last quarter, including 12.5 10 16.7% who say that there will be significantly fewer. 1.1 0 While 13.6% of Significantly fewer Somewhat fewer About the same Somewhat more Significantly more respondents indicate that Total Respondents (n = 264) the number of DM staff will grow, just 1.1% say that there will be significantly more direct marketing workers in the first quarter of 2009.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 13
    • Direct Marketing Staffing Levels in Q1 2009 Compared With Q4 2008 Bernhart Associates Key Insights:Direct marketers remain gripped by a very high degree of uncertainty. If you excludethe extremes (significantly fewer and significantly more), more than 80% areexpecting no change, or only moderate change, in their staffing levels in Q1 2009.The fact that only 1% say that there will be “significantly more” direct marketing staffin Q1 2009 compared with Q4 2008 is consistent with the results released in thelatest report by the National Association for Business Economics describing the worstbusiness conditions in the US since that report’s inception in 1982. Page 14
    • About Half of Respondents Expect No Change in Their Hiring Plans for Q1 2009 Changes Expected in Hiring Plans for Q1 2009 One in five (20.8%) companies plan to add to 10.6% staff in the first quarter of 20.8% We will add to staff 2009, which is comparable with the We will reduce staff proportion (20.1%) that expect to reduce staff in No change that time period. Not sure 20.1% Half of the companies surveyed (48.5%) expect 48.5% to make no changes in their hiring in Q1 2009. Total Respondents (n = 264)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 15
    • Staffing Increases Compared With Staff Reductions Bernhart Associates Key Insights: The percentage of those planning to add to staff stands at an all-time low during the eight years that Bernhart Associates has been tracking direct marketing employment, and this number has declined for the past six consecutive quarters. The current percentage (21%) is down notably from the 80% recorded when post-9/11 direct marketing employment peaked during Q4 2005. Page 16
    • Most Additions to Staff Will Be New Positions Many of those companies that Whether Additions to Staff Will be Replacement or New Positions plan to add to staff in the first months of 2009 report that these jobs will be new positions only 1.8% 9.1% Replacement positions (43.6%). only New positions only In contrast, 9.1% intend to bring workers into replacement Both replacement and 45.5% new positions positions only. Not sure Just under half (45.5%) of those 43.6% firms planning to add to staff say that new employees will be in both replacement and new positions. Will Add to Staff in Q1 2009 (n = 55)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 17
    • Staffing Increases Bernhart Associates Key Insights:When those planning to hire were asked whether they would be replacing staff or creatingnew positions, the number planning to create new positions far outnumbered thoseplanning to hire replacements only. The fact is, hiring in direct marketing goes on, andmany of the biggest online job boards list many dozens of open direct marketing-relatedjob openings nationwide. It appears that, in many situations, positions left vacant arebeing redefined or combined with other roles, sometimes as part of a reorganization, tocreate new positions with new titles and job descriptions. Page 18
    • Job Functions That Will Be Filled Job Functions That Will Be Filled:* • 23.9%: Analytics • 21.7%: Marketing (general) • 19.6%: Sales • 15.2%: Account Management Those companies that plan to add • 13.0%: Customer Service to staff most often mention filling jobs in analytics, marketing, and • 13.0%: Information Technology sales. • 8.7%: Creative • 8.7%: Online/Interactive/Digital • 8.7%: Telemarketing • 6.5%: Accounting/Financial • 6.5%: Marketing Coordinators • 6.5%: Media Management * Job functions receiving multiple mentions. Will Add to Staff in Q1 2009 (n = 46)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 19
    • Job Functions That Will Be Filled Bernhart Associates Key Insights:For as long as Bernhart Associates has tracked the job functions that will be filled, typically twoor three categories dominate the list, and this time was no exception with analytics, marketing,and sales mentioned most, in that order. The strong focus on analytics is well-known in directmarketing, and in fact, analytics has led the list of job functions that will be filled more than anyother category. Sales has typically been a close second to analytics. This quarter, we saw amarked increase in the number of companies planning to add to their sales staff compared withQ4 of 2008, as direct marketers apparently put increased efforts into adding revenue.Online and interactive-related positions, which have consistently been among the top threementions, were further down the list than normal. Customer service and telemarketing arebeing given more priority, as direct marketers running customer-facing operations apparentlyare focusing on maximizing the effectiveness of their call centers and looking for ways togenerate additional incremental revenue through telemarketing. The relatively strong showingfor marketing (#2 on the list this quarter) is consistent with Bernhart Associates’ experience ofseeing clients boosting their planned direct marketing spend while reducing budgets for lesstargeted general advertising. Recessions are a time for re-thinking, re-launching, re-organizing,and re-hiring. Direct marketers are no different, and apparently they are focusing, at least for theshort-term, on making sure the right talent is in place in three critical areas — analytics,marketing, and sales — to help them pave the way for the next expansion. Page 20
    • Most Reductions in Staff Will Be Made Through a Combination of Layoffs and Attrition Two-thirds (66.0%) of those Whether Reductions in Staff Will Be Made Through Layoffs or Attrition companies that plan to reduce staff in the first months of 2009 report that 7.6% such reductions will be 22.6% Layoffs only made through a combination of layoffs and attrition. Attrition only Both layoffs and attrition Just under a quarter (22.6%) 3.8% indicate that job cuts will be Not sure made in the form of layoffs only. A small percentage of companies planning cuts in 66.0% staff (3.8%) report that any reductions will come from attrition only. Will Reduce Staff in Q1 2009 (n = 53)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 21
    • Reductions in Hiring and Staffing for Q1 2009 Bernhart Associates Key Insights:The percentage of those planning to reduce staff remained steady for most of2008, but began to deteriorate in the Fall. The current percentage (20%)contrasts sharply with the readings of 1% - 2% Bernhart Associates noted whenlayoffs bottomed out in direct marketing during the Spring and Summer of 2006. Page 22
    • About Half of Respondents Say That a Hiring Freeze Is in Effect Whether Company Has a Hiring Freeze in Effect Of those surveyed, just under half (47.9%) report that their company has a hiring freeze in place. Yes Slightly over half (52.1%) state that their company 52.1% 47.9% does not have a hiring freeze in effect. No Total Respondents (n = 261)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 23
    • Few of the Companies That Have Hiring Freezes Plan to Lift Them in the Next Few MonthsJust about one in seven When Plan to Lift Hiring Freeze(13.7%) of those firms that 75have a hiring freeze ineffect plan to lift it within the 63.7next one to five months. Percentage of RespondentsA comparable number 50(14.5%) expect the freezeto be lifted in six to eightmonths, while a smallerpercentage (8.1%) think 25they will be able to hire 14.5again in nine months to a 7.3 6.5 4.8year. 1.6 1.6 0Two-thirds (63.7%) of those 1 - 2 months 3 months 4 - 5 months 6 - 8 months 9 - 11 months 1 year Don’t knowwho work for a company Have Hiring Freeze in Effect (n = 124)that is not hiring are notsure how long the hiringfreeze will be in effect.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 24
    • Hiring Freezes Bernhart Associates Key Insights:• The most significant change recorded for Q1 was in hiring freezes. That percentage soared from 34% in Q4 2008 to 48% for Q1 2009. One year ago, it stood at 13%. The fact that as many as half of all direct marketing companies now have a hiring freeze indicates how the current economic recession is closing the door on job prospects for thousands of direct marketers, particularly those who live in smaller markets where fewer direct marketing companies are located.• Another key issue addresses the duration of hiring freezes. When those who reported working for a company that have a hiring freeze were asked when they plan to lift it, almost two-thirds said they didnt know and about one quarter said it would be five months or longer. The uncertainty about when the hiring freeze would end can be attributed to the lack of ability to foresee short-term business conditions as direct marketers enter 2009. Page 25
    • Three Out of Four Direct Marketers Have Been With Their Current Employers for Three Years or More Three-quarters of those surveyed say that the average tenure of their Approximate Average Tenure of Direct Marketing-Related Staff 50 direct marketing staff is at least three years, including 39.8% who are on staff for 40 39.8 Percentage of Respondents three to four years and 34.2 34.2% who are employed for five years or longer. 30 23.0 A minority of direct marketers have been with 20 their current employers for up to two years. A handful 10 have been employed less than six months (0.4%) or 2.6 0.4 between six months to a 0 Less than 6 months 6 months - 1 year 1 - 2 years 3 - 4 years 5 years or more year (2.6%). A quarter (23.0%) have been with Total Respondents (n = 231) their current employer for one or two years.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 26
    • Average Tenure of Direct Marketing Staff Bernhart Associates Key Insights:In 2008, Bernhart Associates conducted its own research on average tenure in thedirect marketing industry (these results will be published in DIRECT Magazine’sFebruary 2009 issue). We calculated average years per employer at just over fouryears. The median was slightly less than three years. Those findings were consistentwith the results we see here. Bernhart Associates has observed that turnover ratesrapidly accelerate after one year on the job.The key to employee retention is understanding that managers and supervisors arecritical. You can have attractive compensation packages, plenty of perks, andemployee-friendly policies, but at the end of the day, people work for people. Theimmediate manager defines the work environment for the employee. It has been ourexperience that employees would rather work for a great manager in a stodgyenvironment, than for a poor manager in a company that offers generous perks and amore employee-friendly environment. Page 27
    • Chapter 2:Employee Compensation Page 28
    • Chapter 2 Findings• Most (55.8%) of the companies surveyed pay their entry-level direct marketing staff between $30,000 -$44,999.•Most companies (59.4%) will sometimes break compensation ceilings when recruiting or to keep directmarketing talent.•Two-thirds (66.2%) of those surveyed expect no change in their salaries for new direct marketing hiresover the next 12 months.• 31.2% of the companies surveyed did not award bonuses in 2008, while 28.1% gave bonuses consistentwith those given in 2007. Bernhart Associates Key Insights:• In recent years, beginning salaries for direct marketers have risen only very modestly.• Today, talented managers want to get paid according to their contributions to the organization.• Bernhart Associates has observed that companies that have been willing to stretch the barriers ofcompensation enjoy a distinct advantage over their competitors in terms of attracting the best and brightest.• Nearly two-thirds of those responding to this question expect to make lateral compensation offers to newhires. Lateral salaries are not uncommon during economic recession, but employers should keep in mindthat the most talented and most highly sought-after individuals are generally much more reluctant to accepta pay cut compared with those who are less skilled, unhappy, unstable, or unemployed.• Results seem to indicate that direct marketers are not experiencing bonus cuts as drastic as othersegments of the economy. Over the years, direct marketers have been increasingly pegging bonuspayments to individual performance. This has helped to control fixed expenses, while at the same timerewarding highly-valued talent. Page 29
    • Most Entry-Level Direct Marketing Positions Pay Between $30,000 - $44,999 Average Starting Salary for Entry-Level Direct Marketing Position Although most (55.8%) 40 companies pay their entry-level direct Percentage of Respondents marketing staff between 30 $30,000 - $44,999, a 22.6 third (32.3%) pay 19.0 higher salaries, 20 including 14.6% who 14.2 14.6 pay $55,000 or more. 10.6 10 8.0 7.1 4.0 A minority of 0 companies (12.0%) pay Under $25,000 - $30,000 - $35,000 - $40,000 - $45,000 - $50,000 - $55,000 or $25,000 $29,999 $34,999 $39,999 $44,999 $49,999 $54,999 more up to $29,999 to their beginning direct Total Respondents (n = 226) marketers.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 30
    • Average Compensation for Entry-Level DM Staff Bernhart Associates Key Insights:The response to this question shows a somewhat broad distribution, as there werealmost as many respondents in the $50,000 - $54,999 range as there were in the$25,000 - $29,999 range.In recent years, beginning salaries for direct marketers have risen only verymodestly. Entry-level direct marketing salaries in the highest cost-of-living markets,including New York City, Boston, San Francisco, and Los Angeles, are typically10% - 15% higher than in lower cost-of-living locations. Page 31
    • Most of the Companies Surveyed Will Change Compensation Caps to Attract or Keep the Direct Marketers They Want Whether Breaking Compensation Barriers to Attract/Retain Direct Marketers While just a handful (5.9%) of respondents report almost always being 5.9% flexible about salary limits when recruiting or keeping direct marketing talent, 34.7% most companies will sometimes break Yes, in almost compensation ceilings all situations (59.4%). Yes, in some situations A third of the companies No surveyed (34.7%) will not 59.4% bend their rules regarding salary caps when trying to get or keep direct marketers. Total Respondents (n = 219)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 32
    • Compensation Barriers Bernhart Associates Key Insights:Surprisingly, about one-third of the direct marketers surveyed said that they are notwilling to break compensation barriers to attract and retain the direct marketers theywant.In the early days of direct marketing, direct marketers were paid largely according tothe office they sat in. When they moved up a pay grade, their salary went upaccordingly. Today, talented managers want to get paid according to theircontributions to the organization. This is consistent with the results we see in thediscussion of the effectiveness of various incentives in attracting direct marketingtalent, which shows performance bonuses to be the most effective incentive. The factis, many managers view money as a kind of "scorecard" for how well they areperforming and how much the company values their talent.There is abundant research and many books that address the subject of compensationstrategies, but Bernhart Associates has observed that companies that have beenwilling to stretch the barriers of compensation have enjoyed a distinct advantage overtheir competitors in terms of attracting the best and brightest. Page 33
    • Most of the Companies Surveyed Will Not Change Their Compensation for New Direct Marketing HiresIn the next 12 months, two- Change Expected in Salaries for New Direct Marketing Hires in Next 12 Months,thirds (66.2%) of those Compared With Previous or Existing Salariessurveyed expect no change 75in their salaries for new 66.2direct marketing hires. Percentage of RespondentsOne in five (19.0%) expect 50to raise salaries for newhires, with 2.7% expectingto raise them by 11% ormore, 3.2% boosting them 255% - 10%, and 13.1%planning more modest 13.1increases of up to 4%. 8.1 2.7 3.2 4.5 2.2A smaller number (14.8%) 0plan to lower salaries for Increase, by Increase, by Increase, by No change Decrease, by Decrease, by Decrease, by 11%+ 5% - 10% up to 4% up to 4% 5% - 10% 11%+new hires – 8.1% plan todrop them up to 4%, 4.5% Total Respondents (n = 222)plan to reduce them 5% -10%, and 2.2% plandecreases of 11% or more.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 34
    • Compensation for New Hires Bernhart Associates Key Insights:Nearly two-thirds of those responding to this question expect to make lateralcompensation offers to new hires, and on either side of “no change,” it is fairly evenlydistributed between increases and decreases in salary.Lateral salaries are not uncommon during economic recession, but employers shouldkeep in mind that the most talented and most highly sought-after individuals aregenerally much more reluctant to accept a pay cut compared with those who are lessskilled, unhappy, unstable, or unemployed. Page 35
    • Most Companies Awarded Bonuses to Non-Executive Staff in 2008; They Were Usually the Same or Smaller Than in 2007 On Average, How Bonuses Earned for 2008 Compared With Those for 2007 for Non-Just under a third (31.2%) Executive Level Staffof those companies 40surveyed did not awardbonuses in 2008. A 31.2 Percentage of Respondentsroughly comparable 30 28.1number (28.1%) awardedbonuses consistent withthose given in 2007. 20 15.2One in ten (9.8%) gavebonuses that were larger 10 7.1 7.6than in 2007. 5.4 2.7 2.7Smaller bonuses were 0.0 0more common, with a third Up, by Up, by Up, by No Down, by Down, by Down, by Down, by Noof companies reducing over 30% 15% - under change under 15% - 30% - over 50% bonusespayouts (30.9%). One in 30% 15% 15% 29% 50% for 2008ten (10.3%) cut bonuses by30% or more. Total Respondents (n = 224)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 36
    • Bonuses for Non-Executive Staff Bernhart Associates Key Insights:Bonus payments for direct marketers have been significantly impacted by the current economicdownturn. Almost one-third of those responding expect to pay no bonuses for 2008, and less than10% expect to pay more in bonuses for 2008 compared with the year before. Still, two-thirds ofthose responding expect to pay, or already paid, a bonus for 2008.Bernhart Associates has seen a number of published reports indicating that bonuses across allindustries in the US economy will be down on average 30 - 40% for 2008. Only about 10% ofrespondents said they will be cutting bonuses at least 30%; the results seem to indicate that directmarketers are not experiencing bonus cuts as drastic as other segments of the economy.Over the years, direct marketers have been increasingly pegging bonus payments to individualperformance. This has helped to control fixed expenses, while at the same time rewarding highly-valued talent. Bernhart Associates expects this trend to continue as direct marketers realize thebenefit of offering performance bonuses in attracting talent (see the section on hiring incentives).Companies also appear to be expanding bonus programs to include more junior-level directmarketing staff, which again is consistent with the results seen in the section on hiring incentives.Typically, bonus payments for executive-level direct marketers averages approximately 50% ofsalary. Page 37
    • Chapter 3: Recruitment ofDirect Marketing Employees Page 38
    • Chapter 3 Findings• 64.5% direct marketers surveyed report that it is at least somewhat difficult to identify qualifiedcandidates for their open direct marketing jobs• The large majority of companies surveyed fill a direct marketing job within four months. Bernhart Associates Key Insights: • As it turns out, the positions direct marketers are having the most difficulty filling are also among the positions they most often mention planning to fill this quarter: analysts, marketers, and sales reps. • In recent years, demand for analysts has grown on the service provider and agency side of direct marketing, but also among non-traditional direct marketing industries such as pharmaceuticals, automotive, and consumer package goods. • What we’re seeing here is a climate of caution. Hiring decisions are among the most important decisions a manager will make. These decisions are highly visible in the organization and the costs of a bad hire can be significant, particularly during challenging economic times like these. Clearly, direct marketers are taking extra time to make sure they are hiring properly. Page 39
    • Most Companies Have Some Difficulty Finding Qualified Candidates Even in this slowing economy, finding qualified direct Difficulty of Finding Qualified Candidates for Open Direct Marketing Positions (Across All Levels/Job Functions) Within Organization marketing candidates is not easy. 4.8% 12.5% Two out of three direct Very difficult marketers surveyed report that it is at least somewhat 28.6% Somewhat difficult difficult to identify qualified candidates for their open Not very difficult direct marketing jobs (12.5% say it is very difficult, while Not at all difficult 54.0% say it is somewhat difficult to do so). 54.0% In contrast, about one-third are not experiencing much difficulty, with 28.6% saying it Total Respondents (n = 248) is not very difficult and 4.8% saying it is not at all difficult to find qualified candidates.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 40
    • Positions for Which It Is Most Difficult to Find Qualified Candidates Specific Direct Marketing Positions:* • 23.8%: Analytics • 14.3%: Account management • 11.9%: Marketing • 10.7%: Sales By a large margin, companies • 9.5%: Online/Interactive/Digital consider analytics direct • 7.1%: Information technology marketing positions to be the most • 6.0%: Copywriters difficult to fill, in terms of finding • 4.8%: Database marketing qualified candidates. • 3.6%: Creative • 3.6%: Production • 2.4%: Marketing coordinators • 2.4%: Media management • 2.4%: List brokers • 2.4%: Customer service • 2.4%: Circulation • 2.4%: Operations • 2.4%: Art/design * Positions receiving multiple mentions. Total Respondents (n = 84)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 41
    • Difficulty in Recruiting Qualified DM Candidates Bernhart Associates Key Insights:As it turns out, the positions direct marketers are having the most difficulty filling are also among the positionsthey most often mention planning to fill this quarter: analysts, marketers, and sales reps.Analytics clearly dominates this list. As a recruiter who has focused heavily in analytics for nearly 20 years,Bernhart Associates understands firsthand how challenging it is to recruit and attract these candidates. Inrecent years, demand for analysts has grown on the service provider and agency side of direct marketing, butalso among non-traditional direct marketing industries such as pharmaceuticals, automotive, and consumerpackage goods. Companies in these industries are increasingly seeking marketing approaches that arebased on quantitative facts and actionable data to ensure a high return on every marketing dollarspent. Demand is also being fueled by the need to measure, collect, and analyze vast amounts of data beinggenerated through online and interactive marketing.At the same, more than just quantitative skills are highly valued. Communication skills, client-facing ability,and management experience are also high on the wish list, narrowing the talent pool even further. Supply isshort and demand is long for individuals who possess these combined skills, with the possible exception ofmanagers who are becoming somewhat more plentiful due to growing layoffs.A handful of direct marketing job categories will remain in demand, at least in the short-term. The currentrecession notwithstanding, anyone who is looking for analysts, sales reps, marketers, account managers,programmers, anything related to online or interactive, copywriters, database marketers, or call center repsmight potentially encounter additional challenges in locating and attracting top talent in these particular jobcategories, and therefore might consider adjusting their recruiting strategies accordingly. Page 42
    • Most Direct Marketing Positions Are Filled in Four Months Most of the marketers surveyed report that it typically takes no more than a few months to fill Average Length of Time to Recruit Direct Marketers Into Available Positions an open position. 50 The large majority of 43.1 36.9 companies surveyed fill a 40 Percentage of Respondents direct marketing job within four months. 30 Seven percent fill them in under a month, 36.9% fill 20 them in one to two months, and 43.1% take 9.3 three to four months to fill 10 7.1 these jobs. 3.6 0 A minority of companies Less than 1 month 1 - 2 months 3 - 4 months 5 - 6 months 7 months or more find that it takes them Total Respondents (n = 225) longer to recruit direct marketers, with 9.3% saying it takes them five to six months and 3.6% saying it takes seven months or more.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 43
    • Length of Time to Fill an Open Position Bernhart Associates Key Insights:You might think that it would be taking direct marketers less time to fill open positionsbecause of the growing supply of available talent due to layoffs. But according toresults, most direct marketers tell us that it takes them three - four months to fill anavailable position, with one - two months a close second.If you were to draw a bell curve of hiring times during periods of economic growth, thetop of the bell would be approximately 60 - 90 days, and rarely would it take more thanfour months. Currently, nearly 10% of respondents report that it takes as long as sixmonths. What we’re seeing here is a climate of caution. Hiring decisions are amongthe most important decisions a manager will make. These decisions are highly visiblein the organization and the costs of a bad hire can be significant, particularly duringchallenging economic times like these. Clearly, direct marketers are taking extra timeto make sure they are hiring properly. Page 44
    • Chapter 4:Hiring Incentives Page 45
    • Chapter 4 Findings• Incentives that involve flexible work schedules or time off are among the most commonly usedincentives, including flexible hours (76.0%), ability to telecommute (70.0%), and more time off fromwork (62.0%).• Financial incentives are also key, with half or more offering higher bonuses (67.5%), earlier reviews(58.5%), or more help with relocation costs (49.5%).• The hiring incentives involving financial incentives such as special bonuses, stock, or help withrelocation as well as those offering more flexibility in work schedules or paid time off, are the mosteffective in attracting direct marketing talent. Bernhart Associates Key Insights:• When making employment offers to top candidates where salary range limits have beenreached, this data gives direction into which incentives might help influence a candidate to acceptan offer.• The results indicate that by not considering more of a performance incentive or sign-on bonus,you could put yourself at a competitive disadvantage in attracting best of breed. Over the years,sign-on bonuses have become much more commonplace among direct marketers as the supplyof talent in certain sought-after job categories has tightened, most notably for analysts andharder-to-get technology workers.• The ability to work from home and more flexible work hours tend to succeed only in thoseorganizations whose culture is strongly supportive of arranging work hours and location accordingto need. Page 46
    • Flexible Hours Is the Incentive Most Often Used to Attract Direct Marketing Talent Incentives that involve flexible work schedules Types of Hiring Incentives Used to Attract Direct Marketing Talent (page 1 of 2) or time off are among the 100 most commonly used Percentage of Respondents 76.0 incentives, including 80 70.0 68.0 67.5 flexible hours (76.0%), 62.0 58.5 60 ability to telecommute 49.5 (70.0%), and more time 40 off from work (62.0%). 20 Financial incentives are also key, with half or 0 more offering higher More flexible Ability to work Additional Higher Additional Earlier Additional help bonuses (67.5%), earlier hours from home training and performance vacation or performance with relocation education bonus paid time off review expenses reviews (58.5%), or more benefits help with relocation costs (49.5%). Total Respondents (n = 200) Two-thirds of companies (68.0%) entice potential employees with more training and education perks.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 47
    • Fewer Companies Offer Sign-on Bonuses, Equity, and BiggerRetirement Plan Contributions to Attract Direct Marketing Talent Types of Hiring Incentives Used to Attract Direct Marketing Talent (page 2 of 2) 100 Percentage of Respondents About four our of 10 companies surveyed offer 80 financial incentives in the form of sign-on bonuses 60 (39.5%), more stock/stock 39.5 39.5 38.5 40 options/equity (39.5%), or increased retirement plan 14.5 20 contributions (38.5%). 0 Sign-on bonus Additional stock, Bigger retirement Other stock options, or plan contributions other equity Total Respondents (n = 200) Source: Direct Marketing Association/Bernhart Associates, 2009 Page 48
    • Over Half of Companies Offering Flexible Work Schedules Report That It Is Effective in Attracting Direct Marketing Talent More Flexible Hours: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, with 1 = Not Effective at all, 5 = Extremely Effective) 55.3% say that more 60 flexible hours is effective Percentage of Respondents in helping them to attract direct marketing 40 candidates, including 32.9 22.4% who find it to be 26.3 extremely effective. 22.4 20 A minority (18.4%) say 15.8 that it is not effective. 2.6 0 Not effective at (2) (3) (4) Extremely all (1) effective (5) Use Incentive (n = 152)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 49
    • Six in 10 Companies Offering Telecommuting Find That It Is Effective in Attracting Direct Marketing Talent Ability to Work From Hom e: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) 62.9% say that offering 60 the ability to work from Percentage of Respondents home helps them to recruit direct marketing 40 talent, with 29.3% finding 33.6 29.3 this incentive to be 22.9 extremely effective. 20 A small minority (14.2%) 12.1 say that it is not effective, 2.1 and just 2.1% say it is not 0 all effective. Not effective at (2) (3) (4) Extremely all (1) effective (5) Use Incentive (n = 140)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 50
    • A Minority of Those Offering Additional Training and Education Benefits Find It Effective in Attracting Direct Marketing Talent Additional Training and Education Benefits: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely One out of four (23.5%) Effective) companies offering additional training and 60 education benefits as a Percentage of Respondents recruitment incentive find them effective – and just 43.4 40 5.9% find them very effective. 26.5 In contrast, one in three 20 17.6 (33.1%) respondents say that this is not an 6.6 5.9 effective recruitment 0 incentive. Not effective at (2) (3) (4) Extremely all (1) effective (5) Use Incentive (n = 136)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 51
    • Two-Thirds of Companies Offering a Higher Performance Bonus State That It Is Effective in Attracting DM Candidates Higher Perform ance Bonus: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) The majority (68.9%) of 60 those surveyed find that Percentage of Respondents 48.9 a higher performance bonus aids them in 40 recruiting direct marketing talent, with 24.4 20.0% saying it is an 20 20.0 extremely effective incentive. 5.2 1.5 Just 6.7% say it is not an 0 effective tool, and only Not effective at (2) (3) (4) Extremely 1.5% find it not at all all (1) effective (5) effective. Use Incentive (n = 135)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 52
    • Half of the Companies Offering More Vacation or Paid Time Off Find That It Effectively Attracts Direct Marketing Applicants Additional Vacation or Paid Tim e Off: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) Although offered by a 60 majority of companies, Percentage of Respondents just about half (48.4%) of those respondents who 40 entice applicants with 33.1 extra paid days off say 29.0 that it is an effective 19.4 20 incentive. 15.3 Few (18.5%) find it 3.2 ineffective, with just 3.2% 0 reporting it as not at all Not effective at (2) (3) (4) Extremely effective. all (1) effective (5) Use Incentive (n = 124)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 53
    • One in Four Companies That Offer Earlier Performance Reviews Find It Effective in Recruiting Direct Marketing Talent Earlier Perform ance Review : Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) A minority (23.0%) of 60 those who offer an earlier Percentage of Respondents performance review to entice applicants report 40 that it is effective, and just 6.8% view it as being 30.8 28.2 very effective. 20 18.0 16.2 In contrast, about half (48.8%) say that it is 6.8 ineffective, with 18.0% 0 finding it not effective at Not effective at (2) (3) (4) Extremely all. all (1) effective (5) Use Incentive (n = 117)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 54
    • Nearly Half of Companies Offering Additional Help With Relocation Expenses Say It Helps Attract DM Talent Additional Help With Relocation Expenses: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) 46.5% report that offering 60 added assistance with Percentage of Respondents relocation costs does help them to recruit direct 40 36.4 marketing candidates, 34.3 although just 10.1% find it an extremely effective 20 inducement. 15.2 10.1 Just one in five (19.2%) 4.0 say that it is not effective, 0 with only 4.0% finding this extra assistance to Not effective at (2) (3) (4) Extremely all (1) effective (5) be not at all effective. Use Incentive (n = 99)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 55
    • Three Out of Five Companies Offering Sign-On Bonuses ReportViewing Them as Effective in Attracting Direct Marketing Talent The old saying that Sign-On Bonus: Rating of Effectiveness in Attracting Direct Marketing Talent money talks seems to (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) hold true here. Most (59.4%) of the firms 60 offering sign-on bonuses Percentage of Respondents report that they work well in attracting DM 40 candidates, and over a 31.6 quarter (27.8%) say that 27.8 24.1 they are a very effective 20 recruitment tool. 13.9 Relatively few (16.4%) 2.5 say that this incentive is 0 not effective, including a Not effective at (2) (3) (4) Extremely handful (2.5%) who all (1) effective (5) report that it is not all Use Incentive (n = 79) effective.Source: Direct Marketing Association/Bernhart Associates, 2009 Page 56
    • Half of Companies Offering Additional Stock, Stock Options, or Other Equity Find This to Effectively Attract Direct Marketing Talent Additional Stock/Stock Options/Other Equity: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) 49.4% say that more added stock, stock 60 Percentage of Respondents options, or other equity is valuable in helping them to recruit direct marketing 40 35.5 candidates. 25.3 At the other end of the spectrum, one in four 20 13.9 13.9 (25.3%) say that it is not 11.4 effective, with 11.4% saying it is not effective 0 at all. Not effective at (2) (3) (4) Extremely all (1) effective (5) Use Incentive (n = 79)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 57
    • One in Four Companies That Offer Larger Retirement PlanContributions Find It Effectively Attracts Direct Marketing Talent Bigger Retirem ent Plan Contributions: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) A quarter (24.7%) of 60 those offering bigger Percentage of Respondents retirement plan contributions say that this 40 35.0 is effective in helping 32.5 them attract direct marketing candidates. 20 15.6 In contrast, 40.3% say 9.1 7.8 that this is not effective, although just 7.8% find it 0 not at all effective. Not effective at (2) (3) (4) Extremely all (1) effective (5) Use Incentive (n = 77)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 58
    • A Third of the Companies Offering Other Incentives Find Them to Be Effective in Attracting Direct Marketing Talent Other Incentives: Rating of Effectiveness in Attracting Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective) Just over a third (34.5%) 60 say that other incentives Percentage of Respondents are effective in helping them to acquire direct 40 34.5 marketing candidates. 27.6 27.6 A similar proportion (31.0%) say that other 20 incentives are not effective. 6.9 3.4 0 Not effective at (2) (3) (4) Extremely all (1) effective (5) Use Incentive (n = 29)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 59
    • Bonuses and a Flexible Work Schedule Are the Most Effective Types of Incentives in Attracting Direct Marketing Talent Effectiveness of Hiring Incentives Used to Attract Direct Marketing Talent: Incentives Rated as Somewhat or Very Effective, “4” or “5” on a 5-point Scale (page 1 of 2) 100 Those companies Percentage of Respondents participating in the survey 80 report that hiring 68.9 incentives involving 62.9 59.4 60 financial incentives such 55.3 49.4 48.4 as special bonuses, 46.5 stock, or help with 40 relocation, as well as those offering more 20 flexibility in work schedules or paid time 0 off, are the most effective Higher Ability to work Sign-on More flexible Additional Additional Additional help in attracting direct performance from home, bonus, n=79 hours, n=152 stock/stock vacation or with relocation bonus, n=135 n=140 options/other paid time off, expenses, marketing talent. equity, n=79 n=124 n=99 Use IncentiveSource: Direct Marketing Association/Bernhart Associates, 2009 Page 60
    • Fewer Companies Find Retirement Plan Contributions, Additional Training, or Earlier Reviews to Be Effective in Attracting Direct Marketing Talent Effectiveness of Hiring Incentives Used to Attract Direct Marketing Talent: Incentives Rated as Somewhat or Very Effective, “4” or “5” on a 5-point Scale (page 2 of 2) 100 Percentage of Respondents The minority (about one out of four) of companies 80 surveyed find that bigger 60 retirement plan contributions, more 40 34.5 training or education benefits, or earlier 24.7 23.5 23.0 20 performance reviews are especially effective as 0 incentives when trying to Bigger retirement Additional training Earlier performance Other, n=29 attract direct marketing plan contributions, and education review, n=117 applicants. n=77 benefits, n=136 Use IncentiveSource: Direct Marketing Association/Bernhart Associates, 2009 Page 61
    • Other Incentives Offered Other Types of Incentives Offered to Attract Direct Marketing Talent:* • 19.2%: Travel incentives Companies offer a number of other • 15.4%: Extra salary/bonuses/commissions types of incentives in order to attract • 11.5%: Merchandise discounts direct marketing talent, including travel • 11.5%: Employee-friendly environment perks and monetary incentives. • 7.7%: Free workplace meals • 7.7%: Desirable location • 7.7%: Technology/electronics (free or as incentives) * Multiple mentions. Offer Other Incentives (n = 26)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 62
    • Hiring Incentives Overview Bernhart Associates Key Insights:The effectiveness of increased relocation assistance has been of particular interest to employers in light ofthe current housing crisis. Only 10% rated it being "very effective." Thats largely a result of the depth of thehousing crisis itself. For many direct marketers who are homeowners and whose home values have sharplydeclined, almost no amount of "standard" relocation assistance would keep them whole if they sold theirhomes. According to the survey results, relocation has a more or less "average" impact for attracting talentcompared with other incentives on the list, given the current economic climate.When making employment offers to top candidates where salary range limits have been reached, this datagives direction into which incentives might help influence a candidate to accept an offer. The results indicatethat by not considering more of a performance incentive or sign-on bonus, you could put yourself at acompetitive disadvantage in attracting best of breed. Over the years, sign-on bonuses have become muchmore commonplace among direct marketers as the supply of talent in certain sought-after job categories hastightened, most notably for analysts and harder-to-get technology workers. In direct marketing, sign-onbonuses typically range from 5% - 10% of salary. If you are looking for a hard-to-find skill, BernhartAssociates recommends a sign-on bonus with a one-year payback provision.The ability to work from home and more flexible work hours can indeed be effective, but these policies tend tosucceed only in those organizations whose culture is strongly supportive of arranging work hours andlocation according to need. Page 63
    • Chapter 5:Respondent Profile Page 64
    • Chapter 5 FindingsRespondents represent a cross-section of industries, markets, and company sizes: • 62.9% of survey respondents hold a job title of vice president or above. • Just over a quarter (27.4%) of those surveyed are in Services, while just over a fifth (21.2%) are in Retail Trade verticals. • Close to two-thirds (63.5%) of those surveyed say that their companies derive most of their revenue from direct marketing. • Over a third (37.6%) of those surveyed indicate that their organizations market primarily to consumers, while a slightly smaller number market mainly to businesses (32.9%). • Almost half (46.2%) of the respondents say that their organizations are Marketers. • Three out of five (60.8%) survey respondents work for a company with no more than 200 full-time staff members. • Annual revenue is under $50 million for just over half of the respondents’ companies. Page 65
    • Nearly Two-Thirds of Respondents Are Senior Management Respondent’s Job Level 50 62.9% of survey 40 Percentage of Respondents respondents hold a 33.3 29.6 job title of vice 30 president or above. 24.0 One in four are directors (24.0%), 20 while 8.9% are managers. 8.9 10 4.2 0 CEO/Pres/ VP/Gen Man/ Director Manager Other Partner/ SVP/EVP/ Other Principal/Owner Exec Total Respondents (n = 213)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 66
    • Most Often, the Companies Surveyed Are in Services or Retail Trade Industry Verticals Primary Industry 50 Percentage of Respondents Just over a quarter 40 (27.4%) of those 27.4 surveyed are in 30 Services, while just 21.2 20 18.8 over a fifth (21.2%) 16.3 are in Retail Trade. 10.6 10 16.3% are in 2.4 1.9 1.0 0.5 Information, 0 t. Communications, m s) e e g n n s) er in nc ad og ri n ti o io fit th rta ra ct Tr ta al tu ro O or Entertainment, ru su te at ac or np le st En .c In sp uf sa no on cl n/ an an d le while a tenth C (in an cl. io ho M Tr at (in de e W ic nc (10.6%) are in ra es un na lT ic m Fi rv om ai Finance and Se et C R n/ io Insurance verticals. at rm fo In Total Respondents (n = 208)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 67
    • About Half of the Organizations Surveyed Derive Nearly All of Their Overall Revenue From Direct Marketing Percentage of Organization’s Overall Revenue Generated From Direct Marketing About two-thirds of those 50 surveyed say that their 46.0 companies derive most of Percentage of Respondents their revenue from direct 40 marketing; 46.0% receive 32.7 91% -100% of their 30 revenue from DM, while 17.5% generate between 20 17.5 51% - 90% from DM. 10 A third (32.7%) generate 3.8 half or less of their total 0 revenue from direct 0% - 50% 51% - 90% 91% - 100% Dont know marketing. Total Respondents (n = 211)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 68
    • The Companies Surveyed Are Somewhat More Likely to Market Exclusively to Consumers To Whom Organization Primarily Markets 50 Over a third (37.6%) of Percentage of Respondents 40 37.6 respondents indicate that their organizations market 32.9 primarily to consumers. 30 29.5 A slightly smaller number 20 market mainly to businesses (32.9%), while three out of ten 10 (29.5%) say that they target consumers and 0 businesses about equally. Consumers only Businesses only Both, about equally Total Respondents (n = 210)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 69
    • About Half of the Organizations Surveyed Are Marketers Whether Organization Is a Marketer, Agency, or Supplier 50 46.2 Just under half Percentage of Respondents (46.2%) of the 40 respondents say that their organizations are 30 30.0 Marketers. 23.8 Three out of ten 20 (30.0%) are suppliers, while 23.8% are 10 agencies. 0 Marketer Agency Supplier Total Respondents (n = 210)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 70
    • About Half of Those Surveyed Work on the Eastern Seaboard Geographic Location of Office 50 Percentage of Respondents 40 Survey participants represent a wide 30 variety of geographic locations. 17.8 18.3 20 15.4 47.2% are on the 13.0 11.1 11.1 East Coast. 19.8% 10 8.7 are on the West 4.3 Coast. 0.5 0 New Mid- South East South West East North West Mountain Pacific England Atlantic Atlantic Central South Central North Central Central Total Respondents (n = 208)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 71
    • Most of Those Surveyed Work for a Company That Employs Up to 200 Full-Time Staff Number of Full-Time (or Full-time Equivalent) Employees 50 Three out of five (60.8%) survey 40 Percentage of Respondents respondents work for a company with no more than 200 full-time staff 30 members. 18.7 20 In contrast, just under a 14.8 quarter (23.4%) work 13.9 12.0 13.4 for large companies 10 10.0 6.2 7.2 having 1,001 or more 3.8 full-time employees. 0 Up to 5 6 - 10 11 - 50 51 - 100 101 - 200 201 - 500 501 - 1,001 - More than 1,000 10,000 10,000 Total Respondents (n = 209)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 72
    • Annual Revenue Is Under $50 Million for Just Over Half of the Organizations Surveyed Annual Revenue 50 Just over half (53.2%) Percentage of Respondents of those surveyed 40 report that their company’s annual 30 revenue was under $50 24.9 million. 22.9 20 At the other end of the revenue spectrum, 9.3 10.2 15.1% of respondents 10 6.8 7.8 7.8 5.4 state that they work for 4.9 companies with an 0 annual revenue of $1 Less than $1 million - $11 million $51 million $101 $251 $1 - $10 More than Not sure billion or more. $1 million $10 million - $50 - $100 million - million - $1 billion $10 billion million million $250 billion million Total Respondents (n = 205)Source: Direct Marketing Association/Bernhart Associates, 2009 Page 73