Mailing Lists Should we invest more in new customers or in building better relationships with our...
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Transcript of Mailing Lists Should we invest more in new customers or in building better relationships with our...
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Mailing Lists
Should we invest more in new customers or in building better relationships with our existing
customers?
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Mailing Lists
• Mailing Lists can help – Target businesses or consumers– Sell a product service direct– Generate a lead– Drive traffic into an online or offline store– Sell Subscriptions
• They may also use– TV-Radio– Print Ads– Co-ops– The internet
• Even supplement with – Trade shows or events
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Mailing Lists
However if organizations use direct mail, they will likely need to
use mailing lists.
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Mailing List Basics
• Mailing lists are not sold but rented– Typically for a one time use
• Many organizations rent their lists– According to the DMA, the practice of making lists
available for rental or exchange has remained consistent over the past few years.
• Companies find it a significant additional revenue source– Average list rents for $70 per thousand
• The more responsive the names on the list, the more it costs and the more likely that the list will be rented frequently.
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Example
• An organization with a list of one million names may be able to rent every name on the list seven or more times a year. – At an average cost of $70 per thousand,
turning the list 7 times annually would generate gross revenue of $490,000
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Types of Mailing Lists
• There are three kinds of mailing lists– House lists– Response lists– Compiled lists
• Each type offers advantages but may have drawbacks.
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House Lists
• House lists are simply the databases of an organization
• Considered the key asset of any organization they include – Current customers– Former customers– Inquiries (Prospects)
• Records may be created from – Direct mail– Phone – Retail– Internet transactions
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House Lists
• In our mobile society where up to 20 percent of the population moves annually and frequent job changes are commonplace, house lists can age quickly.
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Response Lists
• Response lists are the house files of other organizations.
• They are made up of individuals with an identifiable product interest and proven willingness– To buy– Subscribe– Join– Contribute– Inquire– Or otherwise respond to specific offers
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Response Lists
• Because marketers can select lists where specific behaviors have been exhibited, response lists are popular.
• While this is not a perfect science, it is clear that someone who has responded – to a certain medium– A certain kind of offer– A particular product category
Is more likely to respond to similar future promotions than when knowledge of such behavior is absent.
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Response ListsMarketers try to match up previous behaviors with the kind of behavior they are
trying to duplicate: • Buyer Lists
– Individuals who have purchased sth direct, through a direct mail offer, a catalog, a print ad, a web site a short form TV commercial(30, 60, 120 seconds in length) or an infomercial (10, 15, 30 Minutes in length)
• Attendee/Membership/Seminar Lists– Individuals who have attended a conference, trade show or industry event
• Subscription Lists– Individuals who have subscribed to business or consumer publications or
newsletters• Donor Lists
– Fund raisers use donor lists because they contain the names of individuals who have contributed money to charities and non profit organizations
• Credit Card Holder Lists– Active credit card users often fit a profile similar to direct mail buyers
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Compiled Lists
• Compiled lists are made up of individuals or companies without any previous indication of willingness to respond, but with some defined and identifiable characteristics such as – Demographics– Psychographics– Zip Code etc.
• Compiled lists are useful for retail, consumer goods, and business offers where reaching the right target group is more critical than knowing that they have previously responded to a direct response offer.
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Evaluating Mailing Lists
• A good starting point for list evaluation is the Standard Rate and Data Direct Marketing List Source (SRDS)
• Subscribers receive a printed volume and have access to the same information online.
• Rates and other information still needs to be confirmed through a list professional.
• Because SRDS organizes all the information for every list in exactly the same way, it is very easy to compare lists.
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SRDS
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SRDS
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SRDS
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SRDS
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SRDS
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Data Cards
• List information can also be found in data cards provided by list owners and brokers.
• Comparisons can be difficult. – List size – Cost per thousand– List description– Average order size– Percentage of the list that is Direct mail generated– Hotline– Active vs inactive– List usage report– Selections available– Frequency of updating
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Media of Direct Marketing
• Magazines are study unto themselves. How you test and use the medium depends upon your objectives and how successfully you are in matching product profiles with customer profiles