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?
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.