Posted by Brian Berg Google+
When working with your mailing list broker to build your target mailing list criteria there are a number of key points to keep in mind. Below are a number of simple but important points to do to remember that may make the difference between generating buyers, not leads. A few simple adjustments can improve your direct mail targeting, response results, and your bottom line. I urge you to consider these 6 absolutes before purchasing any mailing list.
1. One per household vs. one per address
Traditionally, counts and orders have included duplicate records for the same mailing address. Your mailing list will most likely default to “One Per Household.” This means that for every home where there are at least two roommates sharing the same mailing address, but not the same last name, or where there is a married couple not sharing the same name, there will be two records made available to you.
Thus, two mail pieces will be delivered to that same mail box. This may or may not be appropriate for your campaign. A cellular phone coupon offer that might include a new phone with a 24 month activation and service commitment would be ideal for multiple mail pieces arriving in the same mail box the same day for different people.
However, an offer announcing the grand opening of a new summer camp for your child would not. To correct this default, be sure you request your original count and order to “One Per Address”, instead of “One Per Household.” This will likely reduce your total mail file by up to 10 percent and significantly increase your return on investment.
2. Consider capping your filter ranges for a tighter, more accurate target audience
For many campaigns, the mailing list criteria set may include demographic filters such as age and income. For example, your target audience could be all households with an estimated household income range of $40,000 +, or an age range of age 45 +. Depending on your offer, those highest income and age ranges might not be any better than those ranges below your starting point. Ask yourself if your ideal customer is one with an income greater than $125,000 income or one with an age of 75 or 85 years or higher. If not, then stop your age and income at the top range and eliminate unwanted mail waste.
Remember, the goal is not to mail more but to mail more accurately. Reducing any “non-responders” will only improve your response rate and overall bottom line return on investment. Other selects to consider are Home Value/Assessed Value, Length of Residence, Home Year Built, Mortgage Loan Amount, etc. You may also want to consider mailing more than one mail piece version to various ranges that reach a type of potential buyer. Likewise, you could version your mail piece creative and offer to gain lift in response. As an example, rather than eliminating the senior population from your campaign, mail a different version of your mail piece that’s more appealing to this older age bracket.
This mail versioning is also helpful when focusing on more affluent households. Some offers including discounted services designed for the budget conscience, while those more affluent households are generally looking for quality over price.
3. Properly set response and deliverability expectations
It is important to understand that no mailing list is perfect. Therefore you should expect that there will be some degree of inaccurate mailing list records and undeliverable mail. If you’re a direct mail service provider and you’re working with a new mailer, always run through possible deliverability rates for certain types of mailing lists with your client. Be sure you explain the potential for error on accuracy. If you’re a new mailer yourself, talk with your mail service provider or mailing list broker about these expectations so that you’re comfortable with the reality of mail piece returns.
This will save you or your client a great deal of headache before it’s too late. You should also have a clear understanding of realistic response rates and/or return on investment. If you or your client has never used direct mail as a way to bring in new business, talk to your mail service provider or mailing list broker before you invest in this advertising medium. Go through the process of determining your return on investment break-even point so that you can truly understand the risks involved and the realistic response you should expect. Compare this potential return on investment risk with the other advertisement mediums you’re currently investing in or considering.
Likewise, measure the performance of any advertising investment so that you can learn where your investment dollars are best spent.
4. Closely match your acquisition list with your current best customers
There are those “ideal” customers who purchase on site, pay on time, and return for more. There are others who are loyal to your competitors and indifferent to your offer regardless of the price, value, or competitive edge. How do these two groups of people differ? Can you describe the “ideal” audience in terms of a mailing list in hopes of finding more just like them? Does your current “targeted mailing list” identify the first group over the second? Doing so is crucial to successful response rates.
Consider investing in some mailing list analytics to allow a statistician determine these minute differences that may mean big differences in return. With an acquisition mailing, the better you’ve thought through what your current best customers “look like”, the more apt you are to finding more. It’s always far more cost effective to pay a little more in the way of additional mailing list filters, than to mail to a larger, less responsive audience.
5. Mailing List Update Schedule
When is your direct mail drop? Is it shortly after the next mailing list update? If it can wait, order the list extraction to take place after this date to ensure your highest deliverability. Depending on the database you’re renting, the list may be passed against the NCOA every 60 to 90 days, or for some managed properties, only once a year. Knowing the schedule of this process, and the frequency will tell you what you should expect in terms of deliverability.
If the file hasn’t been NCOA’d in the last 60 days, you may want to consider paying to have the process completed with your acquisition file. Should your plan include mailing both your internal database and an acquisition list, it never hurts to NCOA update both files. Talk to your list broker about the update of the list you’re about to order, as well as what goes into this process. Ask for details on combining an NCOA and DSF2 pass on the data before you mail, chances are high you will benefit from this hygiene process.
6. Consider reviewing the usage report on any managed files
Most every managed database has been tested by other mailers. When selecting from a variety of potential files, ask to review the “usage report” before making your selection. You may find that some of the files have been tested by similar “competitive” mailers but have not mailed to this file again. “Continuation” means that the company performing the mail campaign was satisfied with the test mailing and decided to mail again to the same file. No “continuation” means that the test was likely unsatisfactory. Keep in mind that newer files may have little or no usage. “Little or no usage” isn’t an indication of how well the database will perform for your campaign.
It may simply mean that few have tested the database. It could also indicate that the manager hasn’t recorded the usage yet and therefore is unable to report. It is not likely that you will find a usage report for mailing lists that are not managed properties.
To learn more about how to maximize your direct mail return on investment, visit http://www.bbdirect.com or call us at (866) 501-6273.