No matter what type of direct mail pieces you’d like to sendout, you’ll need a mailing list of people to send them to. Thebasic way to build a mailing list is by capturing name and addressinformation for everyone who buys or shows interest in yourproduct. If you sell by mail, you’ll already have this information.If not, you can get it off customers’ checks. Or you can hold adrawing and ask customers to fill out an entry card or drop theirbusiness cards in a bowl. Or simply put a mailing list book next toyour cash registers where customers can sign up to receive mailersand advance notices of sales. You can also gather names by placinga classified or display ad in print, then compiling the names ofpeople who respond to your ad. Online, you can ask people tosubscribe to your monthly e-newsletter or to supply contactinformation before they download your free e-book. However youchoose to do it, it’s not hard to compile a list of peopleinterested in your products or services.
The list you develop using your own customers’ names is calledyour “house list.” It’s important to keep an ongoing list of yourcurrent and past customers. But when you’re starting out and yourhouse list is skimpy or if you’re trying to expand your business,you may want to consider renting a mailing list, either byapproaching the company you want to rent from directly or using alist broker.
Any company that mails merchandise or information to itscustomers–catalog companies, magazine publishers, manufacturers,etc.–usually has a list manager who handles inquiries and ordersfor the mailing list. If, for example, you know that subscribers toModern Photography magazine are likely to be good prospects foryour product, then you can rent the subscriber list directly.Another good source is local newsletters or group membership lists.Many organizations will let you use their member lists; these canbe very cost-effective.
If you’re not sure whose list you want, call a mailing listbroker. List brokers know all the lists available and can adviseyou on what type of list would work best for your business. Manycan also custom-create lists based on your requirements. You canfind brokers in the Yellow Pages under “Mailing Lists” and “MailingServices,” and in the classified sections of mail order trademagazines. Another source is the bimonthly directory Standard Rateand Data Service Direct Marketing List Source, available in mostlibraries.
Some list companies let you sample a list before making apurchase. Rental costs typically range from $50 to $80 per thousandnames. This is for a one-time use only. (List owners typically”seed” their lists with their own names and addresses so they cantell if you use the list more than once.) Lists will typically beshipped on CDs so you can easily use them with your computer;others send pre-printed names on mailing labels.
Most experts agree that renting fewer than 5,000 names isn’tworthwhile, primarily because a large mailing doesn’t cost muchmore per piece than a small mailing, and the returns are higher. Sostart with about 5,000 names for your first mailing, and considerit a test.
If your response is less than 1 or 2 percent, something’s wrong.Either the market isn’t right for your product, your mailer isn’tattention-grabbing enough, or your prices are too high. If you geta response of 2 percent or higher, you’re on the right track.
Once you develop a complete mailer, continue to test yourenclosures by adding or eliminating one important element at a timeand keeping track of any upward or downward changes inresponse.
