When you need to acquire new customers, purchasing a targeted mail list is the way to reach them. However, some lists are better than others. We talked about five types of prospecting lists in the last post; now, we will discuss analytics for profiling and modeling lists.
Your mailing list is critical to your mailing results. When you need to acquire new customers, purchasing a targeted mail list is the way to reach them. However, some lists are better than others. We talked about five types of prospecting lists in the last post; now, we will discuss analytics for profiling and modeling lists.
The better your list is targeted, the better your response rate will be.
- Descriptive Analytics: Is a profile that describes common attributes of your customers and helps to target, based on demographic lookalikes. The market penetration of each attribute shows the comparison between customers and overall population living in the same geo area, with the same attributes, where each element is examined separately. Basically, you will see who your best customers are and find prospects just like them.
- Predictive Analytics: Is a model that finds how two or more groups are similar or dissimilar. For example, buyers vs. non-buyers; or responders vs. non-responders. Then it assigns a score that represents a probability-to-act, based on the interaction of several attributes. That way, you can get a better idea of who buys what in order to find more people like them.
So why would you want to try one of these options? You can expect an improved response rate, more effective cross-sell and up-sell opportunities, and the ability to build better loyalty programs, because you understand people better. These processes help you identify prospects who “look like” your best customers.
Profiling allows you to profile your best customers (B2C or B2B) and find out what makes them different from others in your target market. You can target new prospects who are the most likely to respond, purchase, or renew, based on your customer data. You can gain precise information about your customers, based on the statistical analysis of key activities. Finally, you will understand the lifetime value of customers, including their probability to respond and purchase products, with a highly advanced model.
Predictive modeling is a process that analyzes the past and current activities or behaviors of two groups to improve future results. This is accomplished between the comparisons of two groups of data. The differences are assessed to identify whether a pattern exists and if it is likely to repeat itself. Scores can be applied to prospect data purchases, or to segment client data for marketing.
Both provide great opportunities for you to target and reach prospects who are more likely to be interested in what you are selling. This way, your offer resonates with them and compels action. This is another way to increase your ROI, as well as save money. You are mailing to only qualified people, so there are less pieces to print and mail. Keep in mind that your customer list is going to get the best response rates, but a highly targeted list like these will have higher response rates than an average purchase list. Are you ready to profile and model your list?
Direct mail is a great way to reach targeted prospects to turn them into customers, but how do you select the right prospects? There are so many mailing list options, it can feel overwhelming. Let’s look at the various list options.
Direct mail is a great way to reach targeted prospects to turn them into customers, but how do you select the right prospects? There are so many mailing list options, it can feel overwhelming.
Let’s look at the various list options.
Prospect data is marketing data that has been collected and compiled for the purpose of new customer acquisition. This data is compiled from a variety of public record sources, including deed recordings, surveys, telephone directories, self-reported and more.
5 Prospect List Types
- Residential/Occupant: This list is compiled from USPS intelligence carrier route-level demographics, and you can segment businesses. The purpose of this type of list is to saturate an area and have names associated with it, along with census demographics, unlike EDDM. The advantage of this list is deep postal discounts. The disadvantages are the ability to only target to the ZIP-carrier route level, there are fewer options for personalization, and it uses only postal data.
- Consumer: This list can be selected by demographics, psychographics, life stage, lifestyles, behavioral, new mover, new homeowner, new borrower, new connect, pre-mover, mortgage/loan, and property data. The purpose of this type of list is to target consumers at their home addresses. The advantages of this list are: controlling who receives your offer; rich demographics selects for enhanced targeting, so you can use variable data for creative optimization; you can use look-alike targeting through the use of demographic profiles; and there are multi-channel opportunities.
- Business: This list can be selected by contact names, job titles, company size, ownership status, square footage, own vs. rent, years in business, business expenses, credit rating, SIC, and NAICS. The purpose of this list is finding businesses and/or business professionals. The advantage of this list is you can target specific types of businesses and key contacts within them.
- Specialty: This list can be selected by many things. Here are some of them: automotive, hospitals, doctors and nurses, education, government, voters, clubs/nonprofits, insurance agents, pilots, realtors, churches, or pool owners. The purpose of this list is to be able to target consumers or businesses based on specific niche attributes most commonly related to occupation/profession. The advantage of this list is a highly targeted audience.
- Managed: This list can be selected by niche marketing, RFM, subscriber files, specific purchases, past purchases, hotline buyers, multi-buyers, responders, or donors. The purpose of this type of list is the ability to identify consumers and businesses by their actions and affinities; to benefit from RFM (recency, frequency, and monetary value). The advantage of this type of list is significant targeting.
Keep in mind that the cost of prospecting lists goes up, the more targeted you get. However, by targeting correctly, you can send fewer mail pieces to more people who are most likely to buy from you. You can save money, send to the right segment of people, and increase your ROI when you mail to the right people.
There is also the option of profiling your current customers and then finding like people in your marketplace, which we will discuss in the next article. Are you ready to select your prospect list?
It’s important to have a trusted purchase list source. You should be informed of where the company gets its data, how often the data is updated and its policies on bad data. Once you have a good source, you need to take on the challenge of choosing your list options.
Since your response rate is directly related to who you are sending mail to, purchasing a mailing list can be a real challenge. There are so many options to choose from that it can be overwhelming. But first, it’s important to have a trusted purchase list source. You should be informed of where it gets the data, how often the data is updated and its policies on bad data. A couple of big purchase list players are Experian and Acxiom — you can check them out, as well as many other reputable list brokers. Once you have a good source, you need to take on the challenge of choosing your list options.
Top industry list option examples include:
- Nonprofit: Income, net worth, age, children, causes donated to in the past, organization membership, fundraising engagement, location
- Retail: Number of children, income, age, gender, apparel purchase habits, brands, online shopping habits, location
- Political: Children, homeownership, voting propensity, location, age, political party affiliation
- Entertainment: Age, income, children, hobbies, purchase history, location, marital status
- Healthcare: Age, income, number of children, location, gender, homeownership
- Education: Age, income, gender, highest level of education, location, interests
You may pick from demographics as well as psychographics. There are so many options, make sure to give yourself time to look over what will target your best potential customers. You want to get the right offer to the right people — the more targeted your list, the better response you are going to get. Marketing personas are fictional representations of your ideal customers, so if you have mapped personas beforehand, it will be easier to make your selections.
You can pre-map customer personas by taking a look at your best customers: Who are they? The more details you have, the more accurate the persona will be. Look for trends in how your customers find you and what they buy. Make sure you are capturing important information about customers in your data so that you can use it to build your personas. You should also interview customers to obtain key answers directly from the source. Too many assumptions can cause you to create an inaccurate persona.
Once you know the personas you are looking for, choosing the right selections for your list becomes easier. Select the options that best represent your customers. The more characteristics you pick, the better targeted your list will be. But keep in mind that more selections often result in a higher-priced purchase list. So make sure you only use the options that really reach your target.
Your list is now ready! Your final ingredients for successful direct mail are your creativity and your offer. Don’t spend all your time on the list and forget these other two components — without all three working together, your direct mail will not generate the response you are looking for. Make your offer clear and concise. Make your creative design catching, but not overwhelming. Give people a reason to read your direct mail.
One of the most common industries to use direct mail is the nonprofit sector. With the economic hard times many nonprofits have more people to serve and are getting less in donated funds. This creates a drastic gap between needs and financial ability to provide them. In many cases, this gap is driving nonprofits to create more fundraising campaigns as well as finding more potential donors to send to.
One of the most common industries to use direct mail is the nonprofit sector. With the economic hard times, many nonprofits have more people to serve and are getting less in donated funds. This creates a drastic gap between needs and financial ability to provide them. In many cases, this gap is driving nonprofits to create more fundraising campaigns as well as finding more potential donors to send to. So let’s see how direct mail can drive your response to increase your donations. Direct mail is more costly than sending out an email due to printing, mailing and postage costs, but when you can increase your ROI to more than cover that cost, it can be well worth it.
In direct mail your list is one of the most important parts. Obviously, the best list is your list of current donors. The USPS requires you to comply with their Move Update regulations by updating your lists every 95 days. There are several important list hygiene tools available to help keep your data clean and accurate.
- Don’t forget to occasionally solicit lapsed donors. Consider telemarketing to those audiences in addition to mail.
- Keep your donor mailing lists up to date. Obsolete data not only costs you money spent on undeliverable or misdirected mail, but can cause lost donations and can impact donor goodwill.
- Studies have found that on average, up to 20 percent of records within a typical house file are undeliverable. By keeping your data current, you will save on printing, mailing and postage costs.
- National Change of Address (NCOA) for new addresses of people who have moved.
- Dedupe, so that you are not sending multiple pieces to the same address.
- Deceased recipient purging, removing anyone who has been reported as recently deceased, can be a great asset as your list of donors are aging.
Finding good lists of prospective donors can be hard. Here are a few ideas you can try.
- Trade lists other nonprofits in your area. Make sure to code the lists when you send them out so that you know who responded from what list.
- You can find targeted prospect lists by looking for individuals who are sympathetic to your mission and have the capacity to give. By utilizing available list targeting tools it is possible to find prospects that most closely resemble your best donors.
- You can customize a list to your specific cause and overlay demographic and psychographic intelligence onto your donor data.
- Another option is to profile you donor list. Sophisticated list profiling is now a reality. Through a powerful array of new market segmentation tools you can profile the unique characteristics of your best donors and identify and target new prospects most like them. The results can boost your direct response rate, increase your market penetration, and dramatically improve your fundraising ROI.
Something else that Nonprofits should take note of, if you are mailing raffle tickets: The United States Postal Service (USPS) is strictly enforcing regulations on mailing raffle tickets. If you plan to mail raffle tickets for a fundraiser, you must meet requirements or the USPS could legally refuse to accept your mail. While it is legal to include advertising for a raffle, including a raffle or lottery ticket in a mailing is strictly prohibited unless you follow USPS guidelines. To avoid potential problems, the USPS requires the ticket makes clear that no payment is required to enter a raffle. The following elements should appear on each ticket in a mailing:
- Use the wording “suggested donation” before the price of the ticket.
- Use the wording “no donation required to enter” or add a check box “Please enter my name in the drawing. I do not wish to make a donation at this time.”
An alternative is to not include a ticket in the mailing. It is legal to advertise a raffle by mail, but you should still use the phrase “suggested donation” if you list the price of a ticket on the advertisement.
Using direct mail for nonprofit fundraising is a great way to help increase your donations. If you are in need of other tips or tricks feel free to reach out and ask providers. They have a wealth of knowledge to help you.