Direct Marketing Tips

List Prospecting Trends

Everyone is trying to save money when it comes to list prospecting. As with any purchase, you want to do your research. Consider the base list price, the type of list and typical response rate, and watch out for hidden costs.

While price is often a defining factor for many buyers, quality should play into your decision. And here is where your research pays off. Just like with car shopping, you can buy the least expensive list, but you will probably get the least desired results. Don’t buy on price alone. You need to consider the type of list, the features included in the price and the response you are likely to receive to your campaign.

The type of list matters just as much as from where the list comes. I know that compiled lists are usually the last selected. They are cheaper, but the response is also, usually lower. Whiled compiled lists may have not been high responders, the segmentation technology is improving, and using custom models may make these lists more cost efficient.

Another trend to consider: list exchanges. While you may not incur the cost of renting names in an exchange, keep in mind that these arrangements often are made with mailers that have a close affinity with your offer or customer demographics, so you may be trading for names that might eventually have come your way. Also, if you are exchanging names with a company that might otherwise have rented your names, you may well have foregone list rental income.

When it comes to price, and you have some volume to play with - haggle. There is more negotiating than before, and nearly everything is up for grabs. Some areas to negotiate:

• Net name arrangements: if you don’t have to, don’t pay for more than you actually mail. You’ll have to prove you already had those names in your database, but it is worth the effort. In the same arena, many list owners are offering an off-the-top discount for duplicates. Buyers take a guess at how many names they already have and negotiate a lower price. Also, if your list or the list you are purchasing are part of a co-op database, don’t add co-op names into the merge/purge, and ask to have your names suppressed as well. All this is possible as long as you have volume on your side. As a data broker, AML works with you and with the data owner to achieve the best outcome. We all want the mailer to achieve the best ROI from their mail campaign, that way they keep coming back for more.

• Selections: Many owners are capping prices. A preset number of selections are decided on for a set price. For example, a six month name with a $50-plus spending level, female, and apparel purchases that used to add 30 to 40 percent to your costs now comes at an all inclusive price. Technology has done this for mailers, the lower processing costs can be passed onto the mailer.

• Custom modelling: When using co-op databases, transactional modelling is included. But consider using custom models, such as postcode models, for a quick boost, to potential response or for better offer targeting. Analyse your best performing postcodes and send only to those for a little lift in response rates.

When it comes to trends, none is more attractive that the Internet. But high responding e-mail and web lists have been hard to get. To improve online list prospecting, get creative. As an example a postcard mailing that drives consumers to a catalogue website to register for a free gift can drastically increase web traffic, the lead those to sales opportunities. Sending a postcard is a great way to cut printing costs and increase the number of e-mail and web shoppers.

Two emerging trends in e-mail prospecting are co-registration and e-mail exchange. Co-registration is when a company agrees to let you offer a sign-up for your list on its website. The prospecting method currently is working for very highly branded, mass-orientated companies - those with a very high recognition brand because the click through is higher if you have broad appeal.

Keeping abreast of these trends can prove difficult but, as you would expect, it is our business to do so. My advice is to stay in touch by using a list broker that takes time to understand your business and responds to your customer acquisition strategy with passion and creativity…

Posted on 22nd August 2006

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