Chapter 4 Direct Marketing

Mailing lists are not sold but rented, typically for a one-time use.
True
If after testing a portion of a list, the renting organization wants to re-mail or roll out the list, it does not have to pay an additional fee
False
Hotline names are rented at a premium price
True
Hotline names
These are names with the most recent activity on file, typically defined as added within the last 30 days some define it as 90 days, 6 months, or a year depending upon how the list owner defines it.
Some organizations choose not to rent their lists but even they will often exchange lists with other companies that have noncompetitive offers.
True
Seeding is subject to abuse
True
Types of mailing lists
House, Response, Compiled
House lists
Names and addresses of your company’s customers
What does the word “customer” usually refer to?
“active” buyer
House lists do not need to be maintained or updated
False
Key asset of any organization when it comes to house lists
Current Customers
Former Customers
Inquiries
Why are former customers valuable?
They are more likely to purchase, subscribe, or contribute than prospects
Whats another word for prospects?
Inquiries
Clues to customer’s propensity to purchase again?
Recency of Purchase
Frequency of Purchase
Type of product Purchased
Monetary value of Transactions
Response lists
Name and addresses of people who have responded to somebody else’s offer
Response lists can be broken down into categories
Buyer
Attendee/Membership/Seminar
Donor
Credit Card Holder
Merged Database Lists
Buyer Lists
individuals who have purchased something direct, through a solo direct mail offer, a catalog, a print ad, a web site, a short-form television commercial.
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.
Individuals on subscription lists are often not valuable
False
Two types of subscription Lists
Controlled Circulation
Paid Circulation
Controlled Circulation
Publications, common in business, are free to qualified readers
How is proof accomplished for being a qualified reader?
By completing and signing a subscription request form or “qualification card.”
Paid Circulation
subscribers pay a fee and are not required to provide information in addition to their name and address.
Donor lists
names of people who have contributed money to charities and nonprofit organizations.
Credit Card holder lists
credit card solicitations are sent and responded to by mail and most direct offers require a credit card.
Merged Database list
merged lists of companies that often won’t rent their lists individually. (duplicate names eliminated
The process of elimination (merge and purge)
Helps you in future list selections
Determine if the list you received was what you ordered and is usable
Compiled lists
made up of individuals or companies without any previous indication of willingness to respond, but with some defined and identifiable characteristics know as “segments or selects”
Types of compiled lists
Consumer Compiled lists
Consumer Lifestyle Enhanced lists
Business Compiled lists
Compiled lists are useful for retail, consumer goods, and business offers
True
Consumer Compiled lists
created from a number of different public and private sources that yields broad national or geographic penetration and pinpoint targeting (Demographics)
Consumer Lifestyle Enhanced lists
syndicated surveys and warranty cards to capture a broad range of consumer information (hobbies, personal, interests, category and brand usage) come from private.
In regards to Consumer lifestyle enhanced lists, self-reported data is totally accurate
False
Business Compiled Lists
Compiled from a number of sources, contain address and phone numbers and key firmographics that describe the size of a company and the type of business that it is in.
Types of Business Compiled Lists
NAICS
Annual Sales
Number of Employees
Headquarters or branch office
Geography
Business structure
Recent relocation
Business compiled lists often fall short in reaching an individual decision maker, but it can help through profiling
True
List Selection Guidelines
Description
Affinity
List Source
Description
Who is on the list? Goal is to match offer and target group as closely as possible to the description of those on lists that are mailed. (subscribers, donors, inquires)
Affinity
A close relationship with the target group that the marketer is trying to reach. (Opera season ticket holder may be targeted for a subscription to a symphony)
List source
origin of names on the list. Individuals who purchased via direct mail are more likely to respond to direct mail than a buyer who responded to a print ad.
Rental mail lists may be rented by
List owners
List managers
List brokers
List owners
Make final decision about any list rental and determine the appropriateness or competitiveness of a prospective renter’s request. (can ask for a sample)
List managers
Administer the lists for the list owners.
Handle fulfillment, billing, and list hygiene
Get monthly updates of list
Benefit owner and renter of list by speeding up the processing of list orders
Usually external
List brokers
provides timely and informed recommendations about which lists should be tested and why and will provide a detailed report on each list recommended
paid commission and referrals are the best way to find them
SRDS Media solutions
provider of advertising research and marketing lists
List size
Range from less than 2000 names to 1 million and it should test a small or large portion depending
Cost per thousand
75.00 to 120.92 per thousand names
Bargain lists are worthless
True
List Description
Paragraph or 2 about background of lists
Average order size
Average size of the mail order purchase made by buyers (good indication of how much individuals might be willing to spend)
Percentage of the lists that is direct mail generated
Higher percentages are better to respond to direct mail than people who became prospects or customers through other avenues.
Hot Lead
customers who made a mail order purchase within 30-90 days also referred to as a hotline
Active vs. Inactive, Buyer vs. Prospect
Test most likely group first and then test the others after the best names have been exhausted
List usage report
get the list supplier to tell you how well the list pulled for others who rented it
Selection available
data card indicates the selection criteria by which the list can be segmented (the more selections the better)
Frequency of updating
Updating frequently lowers the cost of address corrections