The list is a major determining factor when it comes to your Direct Mail success, and as any experienced marketer will tell you good direct mail lists are not easy to come by. In fact it’s not uncommon to find 1 good list out of every 10 (or even 20) tested.

The BEST mailing list you will ever mail is your own customer list – that’s a no-brainer. These are the customers (or at minimum prospects) that have a pre-existing relationship with your organization….therefore MOST likely to respond to an offer. They also represent free data, whereas rented data can come at a hefty price. So it’s always your best bet to start with your own customers.

That’s not to say you can blanket them all with the same offer, as different customers will respond differently. Your active customers need a different approach than your lapsed customers, and neither should have the same approach as an identified prospect. Targeting strategies is a subject for a different post though.

When it comes to renting data, the trick is in identifying the best rental lists that will generate the highest return of new customers.

In determining the best mailing data for your next campaign, your first step is to understand your current customers. What common characteristics do they share? Demographics such as age, income levels, gender are good factors to consider along with any lifestyle information you can gather. By understanding your current customers as much as possible you can begin to search for lists that have similar characteristics.

The process is made easier when you work with experienced list brokers who have access to a wide range of sources. This will not only speed up your research process but also will return better results due to a much wider selection at their fingertips. TIP: use multiple brokers….brokers will work hard to earn your business and no two will have access to exactly the same data, so it doesn’t hurt to approach multiple brokers to request a recommendation (referred to as a “list reco”) based on your target customers.

Once you’ve got your list recommendations in hand, it’s time to delve deep into the details and look for some key triggers in selecting the best data. Assuming the lists all match your desired prospects, look for:

  • How were the names generated? In general names acquired via email will not work well for Direct Mail, and vice versa. The same can hold true across other channels as well. The best data has been acquired in the same method as you are planning to take. Therefore if you are planning a mailing, look for data that has been generated via Direct Mail as these customers have shown a propensity to respond that way.
  • Is a hotline available? A common term in the industry, “hotline” refers to the individuals on that list with recent activity. The range of the hotline is generally defined in terms of months or quarters, and represents the latest purchasers the data provider is making available. As these customers have a ‘recent’ purchase, they are generally more likely to respond to a similar offer. Note there is typically additional charges for hotlines, or other selects available.
  • What is the size of the hotline? A large hotline is usually a good indication that the supplier is doing healthy business and increases your likelihood of acquiring buyers.
  • Is usage available? This is a great way to see who else has been renting this data. If your competitors are, chances are you want to too. If complementary businesses to yours are, chances are you want to too. Renting good data is often a case of follow the leader, and considering the cost to testing, is your best approach unless you have deep pockets to invest in testing.
  • Can you get a sample of the data? If available, it is a good idea to match the data against your own data. Not all providers will allow this, however if it’s at all possible then take advantage of it! Often by matching even a small percentage against your own file will show whether duplicates exist, which can be a good thing! More matches means the customer base is similar to your own, a very good indication that the prospects are viable for your offering.
  • What is the price? Often, you get what you pay for. Sometimes cheap lists are a good deal for a reason.

And the NUMBER 1 tip for selecting the right list? ALWAYS BE TESTING! At the end of the day, it really just comes down to testing. No new list is a lock, and even proven lists will have their ups and downs. By constantly being on the lookout for new lists and by applying the tips above your chances of ongoing success will be vastly improved!