Direct marketing tactics should be used to target existing as well as new customers, industry experts have advised.

The Chartered Institute of Marketing (CIM) has highlighted the potential benefits of such direct marketing techniques for small and medium enterprises (SMEs).

It noted that direct marketing is particularly effective for SMEs as they have the distinct advantage of "knowing their customers better".

David Thorp, director of research and information at the CIM, said: "The information you have about people who've bought from you before gives you knowledge about what they're likely to buy.

"You can tailor your offering to individuals you think are likely to buy the specific product or service in the campaign, and omit those customers who aren't going to be interested."

He added that this tactic "creates a more effective relationship" with the individual customer.

In 2005, the Direct Marketing Association published a paper on the power of email marketing which reported that in the second quarter of the year email continued to be a "strong marketing channel".

Furthermore, the association also found that the volume of direct email marketing has increased by 87 per cent in the last ten years.

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