The print group claims that companies may actually be damaging their bottom line by eliminating targeted customer communications when they reduce their advertising spend.

Steve Williams, sales director at Adare, said: "There is clear justification that if companies execute planned and targeted direct marketing campaigns, especially during economic uncertainty, this will enhance their acquisition and retention revenues, thus easing overall pressures."

He suggested companies should focus on "key prospects and clients" that have the ability to spend and purchase more of their products.

To prove more effective, Williams said combining traditional and transactional mail through transpromotional material is one such way.

"This delivers reduced campaign timelines and rationalises production and postage costs, while increasing relevancy of information to the end customer," he said.

Andrew Woodger, data services director at Adare, added that investing in data is another means of ensuring strong return on company spend.

He said: "Businesses should focus communications on key target audiences that will provide the best return on investment.

"Investing time and money in revisiting, reanalysing and reworking data through post campaign analysis is essential to improving return on investment by helping to forecast the performance of future campaigns."