Kim T. Gordon: Marketing
Improve Your Mail Order Results
Not sure how many catalogs you should be sending? Try doing a test run first.
By Kim T. Gordon
| June 19, 2000
URL:
http://www.entrepreneur.com/marketing/marketingcolumnistkimtgordon/article29718.html
Q: I own a small company that sells promotional products
to automobile dealers. I send catalogs through the mail using bulk
mail. This year I'm sending 120,000 catalogs and need some
advice. I thought about buying 60,000 names from a mail list
company and sending each prospect 2 catalogs. Or I could buy 30,000
names and send 4 catalogs. We'll have the same basic catalog
with four different covers on it-our products don't change that
much. I've always heard frequency is more important than
quantity with regards to how many times you "touch" your
prospects. What are your thoughts?
A: Ongoing testing is essential to determine the
frequency that will yield the greatest results and to find the best
quality lists for your purposes. It's important not to rely
exclusively on one list or one list vendor. Since you plan to mail
120,000 pieces over a year, select two or three lists using the
same criteria, called "selects," and determine how
recently each list has been cleaned to be certain it's no more
than three months old. The undeliverable figure for bulk mail is 10
to 15 percent on average, and a recently cleaned list will help
reduce your losses. Purchase your lists with multiple usage rights,
but take delivery on your labels (in electronic form delivered to
your mailing house) just shortly before each scheduled mailing to
make sure you're receiving the most recently updated
version.
For companies like yours that rely on direct mail, testing is a
never-ending process. To test the quality of the lists from
different vendors, mail the same piece to approximately 5,000 names
from several lists, and monitor the results. Then buy the full
quantity of names you need from the vendors whose lists yield the
highest returns.
One way to find the optimal mailing frequency is to divide a
list of approximately 30,000 names into four equal groups. Mail
once to group A, twice to group B, three times to group C and four
times to group D-and evaluate the results. Imprint all the mailing
pieces with codes so you know exactly which list or group each sale
comes from. Carefully track your conversion data, and use it to
refine your direct-mail program on an ongoing basis.
Kim T. Gordon is a multifaceted speaker, marketing expert and
media spokesperson-and one of the country's foremost experts on
entrepreneurial success. Her newest book, Bringing Home The
Business (Perigee, $13.95, use http://www.smallbusinessnow.com/books.htm), identifies
the 30 "truths" that can make the difference between
success and failure in a homebased business. From formulas for
positioning a business and creating an image to Internet marketing
strategies and tips for work-at-home parents, by reading just one
truth per day, in one month, readers will master a complete course
on homebased business success. To read an excerpt, get information
on media appearances and seminars, receive free how-to articles and
advice, or contact Kim, visit http://www.smallbusinessnow.com.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.
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