Direct marketing is the workhorse of small businesses
everywhere. So chances are, your own marketing plan will include
sending some form of direct mail to prospects. But how much do you
really know about the technical side of buying direct-mail lists? A
well-qualified list is critical to the success of your campaign and
can contribute several percentage points toward a positive
response.
To make sure your next direct-marketing effort gets maximum
results, here are answers to four of the questions most frequently
asked about lists.
1. What kinds of lists are available?
- Many publications rent out their lists. Publications with paid
subscriber lists generally offer only names and addresses, while
lists provided by controlled-circulation sources (typically nonpaid
subscriber bases) put their readers through an extensive qualifying
process and may give you more options to choose from.
- Compiled lists are constructed from directories, such as
telephone books. These are the least preferred because they may
have a large number of inaccuracies, resulting in undeliverable
pieces.
- Associations and other membership groups often rent their
lists, which offers an easy way to reach people with common
interests.
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2. Where can I find the right lists?
The best place to start is in the reference department at a major
public library, with a Standard Rate and Data Service (SRDS)
directory called The Direct Marketing List Source. This
hefty tool includes most lists in the United States by category,
and is available by subscription ($499 per year) online at www.srds.com
You can also use www.mediafinder.com, a free online resource with a
mailing-list directory organized by subject.
If this sounds like a lot of legwork, you can hire a list broker
to do the research and negotiation for you. List brokers are paid
commissions by the list vendors, though they may also charge you a
minimal fee. You can find the names of major list brokers in the
SRDS directory.
3. How do I evaluate list costs?
There's a base cost for list rental, which is expressed in cost
per thousands (CPM). That's the cost to rent 1,000 names,
though you'll generally have to purchase at least 5,000 names
or pay a minimum fee. To test a list, 5,000 names is considered the
minimum. But if the list you want to rent totals only 1,500 names,
you may be able to arrange to use it multiple times in order to
satisfy the minimum.
Above and beyond the base cost for list rental, add in charges
for any special qualifying criteria you require, called
"selections." Typical selections for business-to-business
lists include geography, industry and a company's size or
sales. For consumer lists, additional selections like household
income and the number of children in the household will add
incrementally to the cost of using the list.
Your price will include a set of labels. If your plans include
using more than one list to reach the same target audience, you
should request the lists in an electronic format. Then you can have
your mailing vendor perform a merge/purge to eliminate duplicate
mailings, which not only annoy recipients, but also waste
money.
4. How are lists sold?
Any list you buy will be accompanied by an agreement that may
include the list owner's right to OK your creative material and
send the list directly to a bonded mailing house instead of to you.
(This prevents unauthorized copying.) Sometimes you must agree to
use the list within a particular time frame, so the list owner can
maintain control over how often people on the list are
solicited.
When making your purchase, find out how often the list is
cleaned and updated. This will help ensure the highest number of
deliverables and the least amount of waste.
Once you've made your purchase agreement, lists are normally
delivered within 10 business days. And here's a tip: If you
plan to mail again to the same list within three months, buy a
duplicate set of labels. It's less expensive than making two
individual purchases.
For more information on direct marketing, visit the Direct Marketing
Association.
Kim T. Gordon is a national speaker, the author of
Growing Your Home-based Business ($12.95) and president of
National Marketing Federation Inc., which provides marketing
guidance by telephone to small and homebased businesses nationwide.
For information and books, call (800) 2-SOLVE-IT.