Here’s something many small businesses already know: the mail is one of the most effective ways to reach out to current customers and attract the attention of new ones. According to the United States Postal Service, 98%- almost all mail recipients- check mail on the the day it’s delivered, and 77%, sort through it immediately. Think about it- you can turn radio down or fast forward through commercials, but you do need to check your mail. What other advertising method has proven to capture the attention of so many potential customers?
The mailing list is the foundation of a direct mail campaign. You can choose to purchase a direct mail list from a list broker or mailing service, or generate a list in-house. Purchasing a list works well if you’re looking to reach out to new customers or increase your presence in a new market. Your own database or information is an excellent source for efforts geared towards current customers.
Buying a List
Search for “mailing list vendors” online can turn up thousands of results- not all of them reputable companies with accurate lists. A quality mailing list is thorough (it contains the full names, addresses, zip codes, and possibly email addresses of potential recipients) current (information is up-to-date and accurate), and targeted. Targeting your effort is important- a mailing list based on market research will generate a higher ROI than one that includes every house in a given neighborhood. You can target by demographic (for example, families with small children) by consumer habits (families who have recently purchased a home or a car) or using other “filters” that help you find your target customer. Here are a few ways to make sure you’re purchasing a quality mailing list:
Response lists v. Compiled
Mailing services can compile lists in two ways: A response list is typically generated using a customer’s responses to online advertisements, while a compiled list is generated using data collected by other businesses, such as magazine subscription lists or mailing lists compiled by companies that target a particular market niche. Both types of list can be effective, though many businesses have found response lists to be more targeted toward customers who are ready to make a purchase.
List History
Make sure you ask a list broker which other businesses have used a certain list within the last six months. You want to guard against soliciting customers that have already been bombarded with sales pitches from your competitors. Finding out who has used the list can also be a great way to check how accurate and effective it will be. You can call the prior users and ask how well the list worked in their mailing campaign. Was their effort successful? Make sure you take into account geographic differences, different product offerings, and any other factors that would make their campaign different from your planned effort.
Data Accuracy
Be sure to ask list brokers how frequently mailing information has been updated, and how recently the addresses were obtained- especially if you’re using a list generated by online ad responses. The older the list, the likelier it is that information is outdated- make sure you don’t waste valuable marketing dollars by mailing to households whose information has changed since the list was created.
Costs
Mailing list costs typically fun from a few hundred dollars to several hundred for highly targeted lists. Typically, you can obtain a list of up to 1,000 names for between $100 and $500.