Direct Response

Direct response marketing applies to a merchant which primarily processes card-not-present sales from high-impact advertising. The goal of direct response advertising is compelling consumers to immediate action.

For example, the desired response could be calling to order an advertised product. To impel the customer, the advertiser may add a time limit (“Call within the next ten minutes to receive…”), implying that immediate action is required to take advantage of the advertised deal.

Unlike typical marketing activities, direct response campaigns are not built around long-term benefits such as building brand identity. Rather, they are focused on getting as high a response as possible through advertising channels that typically include internet ads, social media, direct mail, home-shopping channels, and infomercials.

Direct response retailers almost always fall into card network high-risk categories. For starters, they are almost entirely dependent on card-not-present transactions – phone, internet, or direct mail. At the same time, the push for an immediate response will often lead to buyer’s remorse. Both circumstances are known chargeback risk factors.