Before You Buy Mailing Lists

December 29, 2009 by Tim
Filed under: Direct Marketing Lists

What You Should Do Before You – Buy Mailing Lists

The measure ability of direct marketing is such an important element of this business that the word testing is commonly used. Good lists are the lifeblood of successful direct mail.

Everyone compiles a list

I’ve got a little list, can be said by everyone because everyone of us compiles lists of friends in Facebook, Twitter or your Outlook contact lists as well of lists of favorite songs, cell phone numbers and books.

Prospecting for new customers is a science as far as selection is concerned and measurement of response is absolutely essential because this is a field unique among all fields in marketing.

The difference between success and failure can be something as small as a fraction in 1% of a 100,000 mail or email blast mailing. Prospecting in direct mail and email comes down to large differences in small numbers 1/1o of 1% in relation to a 100% whole.

The universe for email and mailing lists are hundreds of millions for consumers in the US only verses millions for business to business lists.

Why Test?

To determine which activities will produce more profit

To determine which activities will produce less profit

There is never and end to testing in direct marketing since everything is always changing. Much of direct mail testing relates to prospecting for new customers and there are some basic ways to improve response when testing

Increase response per thousand
Increase average sale
Increase order margin
Decrease credit loss
Decrease the cost to mail
Decrease the cost for fulfillment

The rules to consider when planning a mail campaign:

Always split every mailing that is meaningful to you, test a group of new lists by demographic data
Only test one element at a time in a series of experiments like one offer is made to one list
Concentrate tests first on markets (lists) and then offers
Do not set a price for the market – the price is the single most important element in the offer let the market decide on price by testing
In split testing test prices both high and low where you think the market will determine the right price for you.
Always remember it is better to send a poor mailing to a good list than a good mailing to a poor list.

Most of these direct marketing techniques have been tested and perfected over the last 100 years and they will guarantee you success in your direct email online or direct mail offline.