3 Dec 2016
If you are a business that is thinking about using direct mail marketing as a part of your marketing mix, then it is important to understand what makes a mailing list effective. Also businesses should understand how they should manage mailing lists in their business database in order to save money for the business. The best kind of list is known as the house file. The house file consists of lists of customers who are loyal to the business and those customers that you have acquired a close relationship with. Throughout many years managers have seen a significant increase in their profits from using the house files.
Internal mailing lists have a huge place in the direct marketing mix but they cannot help the business when trying to reach new prospective customers. This is when the business has to resort to rent/purchase mailing lists. The rented lists are not purchased and they are rented once or for multiple use by the same business.
Renters must agree to some rules and should never sell the mailing list to any other business. Each list that the renter uses is usually seeded with names and addresses that provides feedback to the owner of the mailing list, should the list renter not comply with the agreement. It would be beneficial for a business to understand some points before using any business mailing lists. These tips could help save money and reduce the cost and increase the response rate.
Find the right list for your business
Your business should create a customer profile and outline the demographics of your target customers. The business know what kind of product they want to sell and thus what they expect to gain from their mailing lists. It is very crucial to know how to target customers and have specific lists. They should be able to segment their customers based on age, gender, race, and religion. This will help them assess whether or not they should send messages to the specific customer about a product.
Determine how many times you want to use the list
Mailing lists are borrowed for a set number of use. You may be able to purchase a list outright. This option will give you the flexibility to use it many times during a specific period, usually one year. List owners ‘seed’ mailing lists with receivers who follow and check how the list is being used. It is a good idea to keep track of your usage to make sure how many times you are using the list. Some companies and businesses rent a list once and then if it works for them they will purchase it.
Get response lists not complied lists
Response mailing lists are generated on the basis of customers buying behavior. The customers in response lists are most likely to respond to your mails when you offer discounts, sales or advertise your products and services. Customers’ past buying behaviors are likely to be the same in the future, which is why it will be helpful for companies to find the right customers.