No matter what type of direct mail you send out, you’ll need a mailing list. The basic way to build a mailing list is by capturing name and address information from everyone who buys or shows interest in your product. If you already sell by direct mail, you’ll already have this information. If not, you can get it from your customers records.
If you are in retail hold a prize draw competition and ask customers to fill out an entry card or drop their business cards in a bowl to win a prize. Or simply put a mailing list book next to your cash registers where customers can sign up to receive mailers and discount vouchers. You can also gather names by placing adverts in newspapers and magazines, then compiling the names of people who respond to your advert.
Another great way to gather names is by placing a competition on your website. All you have to do is give away one of your existing products. Don’t forget to ask for entrants full name and address – not just their email. That way you can send them a catalogue via the postal service.
The mailing list you develop using your own customers names is called your “in house list”. Of course, when you’re first starting out, your in-house list won’t be very large. To supplement this, one way to go is to rent a mailing list. There are two ways to rent a mailing list – approaching the company who you want to rent from directly or using a mailing list broker.
Any direct mail company that mails out merchandise or information to its customers eg. magazine publishers, manufacturers, catalogue companies etc. usually has a list manager, who handles inquiries and orders for the mailing list. For example, if you know that subscribers to a “computer magazine” are likely to be good prospects for your product, then you can rent their subscriber list directly.
Another good source is local newsletters or group membership lists. Many organizations will let you use their member lists. This can be very cost-effective solution.
If you’re not sure whose mailing list you want, call a mailing list broker. List brokers know all the mailing lists available and can advise you on what type of list would work best for your business. Many can also custom-create lists based on your requirements. You can find list brokers in the Yellow Pages or via internet search engines under “Mailing Lists” and “Mailing Services” and in the classified sections of mail order trade directories. Your national direct mail association can also refer you to mailing list brokers.
Don’t try and use the mailing list more than once. All mailing list owners will insert “seeds” into their lists with their own names and addresses, so they can tell if you use the list more than once. And if they receive two catalogues from you – they will immediately know you have used their mailing list twice and send you a bill for the second time charge.
When you rent a mailing list it will typically be shipped on computer disk or via email so you can easily use them with your computer. Others may send you pre-printed names on mailing labels for you to then stick onto your mailing pieces.
Most experts agree renting fewer than 5,000 names isn’t worthwhile, primarily because a larger mailing doesn’t cost much more per piece than a smaller mailing, and the returns are higher. Start with about 5,000 names for your first mailing, and consider it a test. If your response is less than 1 percent or 2 percent, something is wrong. Either the market isn’t right for your product, your mailer isn’t attention-grabbing enough, or your prices are too high. If you get a response of 2 percent or higher, then you’re on the right track.
Once you develop a complete mailer, continue to test your enclosures by adding or eliminating one important element at a time and keeping track of any upward or downward changes in response rates.
