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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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Presentation on theme: "Mailing Lists Should we invest more in new customers or in building better relationships with our existing customers?"— Presentation transcript:

1 Mailing Lists Should we invest more in new customers or in building better relationships with our existing customers?

2 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

3 Mailing Lists However if organizations use direct mail, they will likely need to use mailing lists.

4 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.

5 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

6 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.

7 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

8 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.

9 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

10 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.

11 Response Lists Marketers 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

12 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.

13 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.






19 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

20 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

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