3 Tips for Improving Mailing List ROI

In light of the current economy and the need to mail smarter, here are three things every direct marketer can do to maximize the value from their list rentals and their time.

1) Leverage empirical knowledge and effective negotiation skills.

This sounds much better than saying "hire a good list broker", but that is the recommendation. Experienced brokers know which lists work and which ones don't. Many have relationships with original list compilers so they can buy directly from the source and extend discounts based on economies of scale. Savvy brokers also understand analytics, so they can back up their recommendations with quantitative information and explain the meaning behind the metrics.

2) Leverage analytics to work for you.

Technology has powered the science of analysis with meaningful statistics on virtually every list on the market today. For example, the test-to-continuation ratio provides an aggregate measure of mailer success renting the same list. If a high percentage of mailers are placing continuation orders, then something about the list is working for them.

Another good reference point is the list popularity index (LPI). The LPI is based on how recently and frequently a list is included in list brokers' recommendations to their clients. This is a great tool for comparing mailing lists that have been on the market for a while, but should not be used exclusively to rule out titles that are new to market or have recently changed managers.

Ask to review a list profile. Comprehensive list profiles are available because a data bridge now connects data cards with the underlying data at the owner service bureau. You get a visualization of frequency distributions for all selectable dimensions including demographics, psychographics, interests, and purchase behavior.

3) Optimize list selection value.

Many selections have significant overlap, and choosing them together will only result in higher costs. A good list broker can optimize your selection criteria based on the resulting data set. They serve your best interests and do not typically receive commissions on selection revenue.

Getting the most 'bang for your buck' on lists can be myopic if you rule out options that can significantly help to grow your business. Choosing only those lists with the highest return on investment (ROI) and response rates can narrow your market reach, so consider your primary objectives before defining your acceptance criteria.

There's plenty of empty space in the mail box, and the best time to avoid the clutter is now!

Comments

[Tim Craig]

If you want to optimize your mailing list then you have to consider what happens to the undelivered, returned and ‘goneaway’ mail and how the ‘end of life’ solution is handled. Apart from the considerable savings, brand image protection and helping to mitigate the opportunity for identity fraud signing up to the DMA’s BSI Standard PAS2020, will help you get the best from Royal Mail’s Sustainable Mail and CodEffect their proprietary 2d bar-coding system. If required you can check the return details against a range of change data to verify the reason for return, and in many cases to provide the new address of your customer.

Veridata provides a specialist and automated quick turn around service for processing Returned and Undelivered Mail. This is the penultimate piece of the jigsaw for anyone sends out large mailings, catalogues, etc., and it addresses the issue of ‘producer responsibility’ that all waste paper generated is disposed of acceptably

Returned, unwanted and undelivered mail produces vast amounts of waste
paper and 80% of the carbon footprint for a piece of direct mail is in the
‘end of life’ solution. New EU Landfill regulations on landfill demand that this be addressed.

Since 1996 Veridata in Chester has provided this dedicated service to
customers including one of the largest credit card Companies in the
world. We have reduced their undeliverable mail by 50%, recycled
tons of paper waste and saved them hundreds of thousands £s.

Concerned about climate change? -'If you think that you are too small to make a difference, try
sleeping in a room with a mosquito.'

[personalized printing]

Thanks for the tips. i think your second tip, Leverage analytics to work for you, is very helpful. We can really save a lot by this.

-Luke