Direct Mail answers for PR & Marketing Professionals, Nonprofits, and Small Business

Why the Best Mailing List for You may be Free: List Partnering

There are multitudes of targeted mailing lists available for purchase, particularly for organizations that have a targeted vertical market, yet some of the absolutely best producing lists can be gotten for free via list partnering.  What is List Partnering?  Here’s an example that will illustrate how it works.

What's an example of List Partnering? I've got a client who sells hearing aids and has an established relationship with a medical doctor whose specialty involves working predominantly with senior citizens.  While senior citizens are not the exclusive users of hearing aids, they represent the vast majority of people who purchase hearing aids.  The hearing aid specialist has a degree in her field and has been working in the field for the last 8 years.  This specialist has a long-term established relationship with the doctor.   Many of the doctor's patients have purchased hearing aids from the specialist and reported back to the doctor with first-hand testimonials & positive feedback regarding their experience working with the hearing aide specialist.  The doctor agrees to do a list partnering with the hearing aide specialist, where the hearing aid specialist bears the cost of the mailing campaign, and the medical doctor provides the list.  To protect the integrity of the list, the doctor actually sends the mail piece; for privacy reasons, the list cannot just be "given" to a 3rd party.  The mailing is mutually beneficial because it allows the doctor to communicate with his clients thus generating referrals and repeat business, and it allows the hearing aid specialist to introduce her product to a new audience in the right age demographic.  As in this example, list partnering should be mutually beneficial.

What are prerequisites before approaching a list partner?
1) There needs to be an established relationship of trust between the 2 partners.
2) To maintain trust in the relationship, the person asking for access to the list needs to make sure that it's okay for the person they're asking to say "no."  Decisions regarding list partnering should never be rushed, and should never be high pressure.  Nothing is more important than maintaining the integrity of the relationship between the two parties involved.
3) The person requesting access to the list needs to make sure that the product or service being offered is relevant to the targeted audience.

What are Red Flags?
1) Be suspicious of anyone who asks to participate in list partnering without an established relationship.
2) Be cautious of establishing a list partnering relationship with a newly established organization that has no track record.

Who should pay for the cost of the mailing?  Typically, the organization that's given free access to the list should bear all or most of the cost of the mailing project.  There are no rules set in stone regarding this, however, and in some cases, the organization providing the list may actually bear the cost of the mailing; this is particularly true when a for-profit business is partnering with a nonprofit organization and organizing some sort of fundraiser.

Note of caution for nonprofits, please see my blog post about Restrictions to Mailing at the Nonprofit Rate before pursuing this.

How can I take advantage of this?  Anyone pursuing this should look at who they have a relationship with that has an audience of customers or donors who would be interested in their product, service or cause?  Few people will make a purchase or donation without established trust.  List partnering offers instant credibility and trust and this is why these types of lists are so powerful.  Partnering can work business to business, business to nonprofit, nonprofit to business or nonprofit to nonprofit.  Pick up the phone today, and ask a trusted friend about list partnering!

Thank you for sharing list partnering feedback in the comments section below.

Use PURLs (Personalized URLs) to Improve the Response of your next Direct Mail Campaign

Recent marketing studies point to the growing importance of interactive communication.  The key to interactive communication is to engage an audience, not just talk at them.   Engagement is 2-way and necessitates listening.  PURLs (Personalized URLs) connect a static form of communication, direct mail, with an interactive form of communication via the internet.  This increases the power of direct mail exponentially because it makes it both interactive and personal.

What is a PURL?  A PURL (Personalized URL) is a custom micro website created with just 1 person in mind, the recipient of a specific direct mail piece.  In a campaign where 10,000 pieces are mailed, there will be 10,000 different personalized websites generated.  The unique websites are printed on the mail pieces as they are addressed.  Not only does each website have a unique URL, but the PURL landing page typically greets the recipient by name.  Because each website is unique, it’s very easy for the sender to determine which recipients responded to the mailing. 

Can you give me an example of campaign using PURLs?  A local college sends out a targeted direct mail campaign to attract rising high school seniors to apply.  Interested students enter their personal URL from the mail piece, and are welcomed by name to their custom landing page.  A very brief survey that's on the landing page asks the students to select from a list of possible degrees or majors, and then asks for their preferred method of contact while collecting this additional contact info (cell phone @, e-mail address, etc.).

What are the benefits to using a PURL?

• Improved Response: Because of their interactive nature, research consistently shows that campaigns utilizing PURLs generate substantially higher response rates.  Testing also shows that the personalization alone improves response rate, so when this is combined with a PURL, it makes the response rate even higher.
• Ability to track a response & capture more info: PURLs allow the sender to continue the conversation by generating an online response from the recipient.  In the example provided above, the college is able to determine not only which prospects filled out the survey, or clicked on another area of the page, but they can also determine which prospects opened their PURL and did not even click.  This information creates a feedback loop that can be used to determine which students should receive future mail communications, and other forms of contact from the college recruiters.  
• Cost-effective: PURLs are in essence screening an audience of prospects in an automated fashion; compare this to how expensive it would be to pay someone to call every direct mail prospect as follow up (assuming phone numbers were even available).  The more expensive human interaction can be devoted to the recipients who pre-qualify themselves, and provide their preferred method of contact.

Who should consider using a PURL?  Successful applications for PURLs can be found across nonprofit, for-profit businesses and even government.  PURLs have been used effectively with existing customers & donors, and with new prospects.  Really any organization that wants to start a conversation with an audience, or prequalify a group of prospects should consider using PURLs.

PURLs represent the future of direct mail marketing.  For those already using direct mail successfully, PURLs are very likely increase the response rate.  For anyone who's avoided direct mail because of the difficulty in measuring response rate, then PURLs are the ideal way to leverage direct mail and have an accurate understanding of response.

In the comments section below, please share your experience or your clients experience using PURLs.  Your feedback will only make this post more valuable for other readers.  Thank you for sharing!

Why does it take so long to get approved to mail at the Nonprofit Rate?

Shhhh!  This is top-secret info that you will not find published in any USPS manual, but it will help you to get your application expedited to mail at the nonprofit rate.  Yes, it’s legal, but I only found out about this info as I watched 2 nonprofits struggle through the review & approval process.

How long does it take to get contacted by the USPS?  Within the last 5 months, I submitted paperwork on behalf of 2 nonprofit clients who did not received any contact about their application for 6 weeks (ouch!).  This is not approval in 6 weeks-this is initial contact from the USPS.

The fact that the USPS is under a great deal of financial pressure has been well-publicized recently.  Let’s taking high road and assume that delays are the result of staff reductions, and the potential increase in application volume from nonprofits looking to save every penny possible with the dramatic drop off in donations last year.

Who ultimately approves the Application to Mail at Nonprofit Standard Mail Rate?
The PCSC (Pricing and Classification Service Center) in New York City reviews applications for approval. 

What are the steps in the review process?
If an e-mail address is provided on the application, then the PCSC will contact the nonprofit via e-mail and provide a 7-digit application number that simply confirms receipt of the application.  Again, in my recent experience, this took about 6 weeks.

If the PCSC has any questions about the application, then they will typically call the nonprofit that is applying.  In my experience, this took an additional 2-3 weeks following the confirmation e-mail.

Finally, once approved, the nonprofit is issued a 6-digit authorization number which confirms the nonprofit’s ability to mail at discounted nonprofit rate.  When nonprofits are not approved, they receive a rejection letter that explains the reason or reasons that the application was denied.  My recent experience has the entire process lasting about 4 months.

How can I contact the PCSC if I want a status, or have a question?
You can’t!  Only postal employees can contact the PCSC  directly.  To get status updates on behalf of my clients, I contact my local BMU (Business Mail Unit), and ask them to contact the PCSC on behalf of the nonprofit seeking approval.  It’s best to wait until the 7-digit application # has been received before attempting any follow up with the PCSC

What steps should I take BEFORE turning in the Application to Mail at Nonprofit Standard Mail Rates?
• As ridiculous as it sounds, check with your local BMU to make sure that your nonprofit is not already set up to mail at the nonprofit rate.  Staff turnover results in many nonprofits being unaware that they are already approved.
• If your organization is already approved, but you are changing your legal name, you DO NOT need to fill out another application.  Instead, simply fill out form PS6015 (Nonprofit Database Change Request) ,  to update the name of your organization.
• Maintain photocopies of any of the documentation that you submit to the USPS.  Keep a date log of activity, including the date that paperwork was initially submitted.
• Your request will be denied if you do not submit all of the requested documentation.

If you are not yet approved to mail at the nonprofit rate, you probably want to take a look at my earlier post, Help, I’m a Nonprofit and Need to Get Set Up to Mail at a Nonprofit Rate!  After reading this post, there should be no reason to procrastinate any longer.

I would love to see comments below from nonprofits that recently submitted their Application to Mail at Nonprofit Standard Mail Rates, and had a quicker turnaround or a different experience.

Key Ingredients For a Successful Direct Mail Campaign

Direct mail has plenty of detractors, but as can be seen in my post last week, Is Direct Mail Dead?, there are plenty of people incorporating direct mail successfully into their marketing mix.  So what can explain the dramatically different results from one person’s campaign to the next?  In my 6 years in the industry, I’ve been first-hand witness to many successful and many failed direct mail campaigns, and in my experience, here are the key ingredients for a successful campaign.

Don’t Overlook the Importance of the List
According to John Coe, author of The Fundamentals of Business-to-Business Sales & Marketing 50% -70% of the success of a mailing campaign is determined by the mailing list.  The same holds true for nonprofits.  Nonprofit expert & author, Mal Warwick’s research shows that on average the mailing list is responsible for 50% of the success or failure of a mailing campaign.  These statistics scream out that one of the most overlooked components of mailing campaigns is the list!

Start with Existing Customers or Donors
 
Existing clients or donors are like low-hanging fruit and should be the first group targeted when investing money in direct mail campaigns because they represent the highest return on investment.  Most nonprofits are aware of this, but many for-profit businesses neglect opportunities for cross-selling and referrals that exist with their own customers. 

In cases where budget constraints prohibit mailing to an entire list, the list can be segmented in such a way that a smaller group of existing customers can be sent a more specific message that has even greater relevance to them.

What should I expect from the Initial Contact of New Prospects?
When venturing outside of existing customers or donors, the initial campaign needs to be approached as an investment, not as an immediate money-making proposition.  Industry research shows that between 7 to 9 touches are required on average before a new prospect will make a purchase or donation.  An important message here is that one-shot campaigns have a very low success rate.  Developing new clients needs to be a long-term goal, and needs to include multiple direct mail touches, or touches via other channels such as by phone, in person, via e-mail etc.  The initial touch is in most cases just an opportunity to make an introduction and establish rapport with the target audience.

Finding a Quality List of Prospects
The “just moved” mailing list is the most heavily-marketed mailing list in the direct mail industry, but with the exception of mattress salesmen, this is a poor prospect list for most other types of organizations. 

I’ve written a several blog posts highlighting a variety of virtually unknown lists that are available for targeting prospects.  For nonprofits, there is a list a Charitable Donor Mailing List .  Lifestyle Lists represent another commonly overlooked resource for either for-profit or nonprofit. 

Business to Business Mailing Lists contain extremely detailed amounts of information including estimated annual revenue, number of years in business, number of employees etc.  These business lists can be further segmented by industry.  For medical professionals, there are even Medical Ailment Lists available.

Unfortunately, the default list for most small organizations is a prospect list that is based solely on geography, and this type of list completely overlooks the potential of starting with a common bond between the organization sending the offer and the potential donor or customer.

Determine the Definition of a Successful Outcome in Advance
All successful campaigns have a definition of “success” before the first piece of mail is sent.  The goal of the campaign should be specific; examples include getting recipients to
• Sign up for an e-newsletter
• Become a Facebook Fan
• Call to set up an appointment
• Make a purchase online
• Make a donation
• Sign up to be a volunteer
It’s much easier to identify a target mailing list and structure a successful campaign once “success” is defined.

KISS (Keep It Simple, Stupid)
Don’t bombard prospects with excessive text!  The temptation of all organizations is to tell their complete story and to avoid omitting any small detail that could possibly be of interest to a customer, donor, or prospect.  Unfortunately, people have limited attention spans, and the most successful campaigns, pick 1 specific topic, request or offer and present that to their audience.

Thank you in advance for sharing your comments below identifying other ingredients for successful direct mail campaigns!

Is Direct Mail Dead?

I read a blog post yesterday declaring the death of direct mail and found my inspiration to write this blog post.  I am a firm believer in a multi-channel marketing approach; although direct mail is my business, I also market via my blog, my e-newsletter, Twitter, LinkedIn and old-school face-to-face networking.  Examples of failed campaigns can be found without much effort citing just about any marketing medium, including direct mail.

Direct mail is a critical tool that I use to keep my customers & prospects engaged.  To demonstrate that direct mail is not in fact dead, I received permission from 2 clients (1 nonprofit and 1 for-profit) to share how direct mail effectively fits into their marketing mix.

Nonprofit Example:
The Edison State College Foundation raises money for local students who would not normally be able to afford their secondary degree or a college education.  Edison State College educates many of the first-responders in emergencies including EMS, fire & police in Collier County, Florida.  The Foundation uses direct mail as a tool not only to fundraise, but also to educate supporters about how their donations are being used in the local community.  Additionally, direct mail is used to invite supporters to key annual foundation events.

Why does direct mail work for the Edison State College Foundation?
• Communication with donors is planned and scheduled on an annual basis
• Direct mail is used not only as a vehicle to raise money for the cause, but it is also used to thank & recognize supporters and to tell compelling stories describing real-life community success stories that are possible only because of the generosity of their supporters
• Donating is made easy by providing direct mail recipients the option to make contributions online or by mail

How do we know this is working?
With “save-the-date” cards & invitations sent via direct mail, 180 supporters attended today’s LIFE Awards luncheon recognizing a distinguished supporter of education in the local community.  Contributions to the foundation continue to grow on an annual basis.  These successes are happening despite a “soft” economy. 

For-profit Example:
Florida Realtor, Dustin Beard, uses direct mail to advertise listed properties and sold properties in his target neighborhood.  He also starts each Florida “season” by sending his list a complimentary note pad that includes his name and contact information.  Dustin has a specifically defined territory that he’s been marketing to consistently for years.  Because he maintains a consistent presence in his target area, Dustin is thought of as “the” real estate expert in his defined territory.

Why does direct mail work for Dustin?
• He has a specific, defined target area.  He presents himself as a specialist, not a generalist.
• He creates a marketing plan with pre-scheduled drop dates, and he sticks to the plan.
• His touches with his target audience are consistent allowing him to maintain top-of-mind awareness.

How do we know this is working?
This is the 3rd consecutive year that I’ve been working with Dustin, and he continues to invest in direct mail marketing on an annual basis because it generates business for him.

Will people still proclaim the death of direct mail?  Absolutely!  I hear stories almost every day from people who tell me that direct mail doesn’t work.  When digging a little deeper, I find in most cases that these failed direct mail campaigns were “one and done” mailing campaigns sent to a broad and undefined audience.  Please subscribe to my e-newsletter or stop back to read my next post titled “Key Ingredients for a Successful Direct Mail Campaign .”

Please share your comments below regarding what has worked and has not worked for you with direct mail campaigns.

Yes, There are Restrictions to Mailing at the Nonprofit Rate

Nonprofit organizations in the US are able to save thousands of dollars in postage expenses each year by mailing at the deeply discounted nonprofit rate.  Smart nonprofits often partner with for-profit companies when fundraising.  However, just because a charitable organization is approved to mail at the nonprofit rate doesn’t mean that they can partner with just any organization and still qualify for deeply discounted postage.  The US Post Office prohibits partnering with businesses in specific industries.

Which industries are specifically restricted?  The US Post Office goes out of its way to single out the following 3 industries 1) credit card companies 2) insurance companies 3) travel agencies.

What are the consequences of partnering with one of these industries? The US Post Office has the right to make the nonprofit pay the higher presort standard rate (typically about 10 cents more per piece in postage), or they can refuse to mail the piece if the nonprofit is unwilling to pay this increased postage rate.

What’s an example of a restricted partnership?  Here’s a common example involving a travel agency: “10% of the purchase price of your Caribbean Cruise will be donated to xyz charity.”  This is an example of a mailing that benefits a nonprofit, but does not qualify to be mailed at the nonprofit rate; the piece can still be mailed, but not at the nonprofit rate.

What about nonprofit mail pieces that are inside envelopes?  In the case where the nonprofit mail piece is a postcard then it’s almost impossible for the US Post Office to miss when a nonprofit partners with a restricted business.  If the mail piece is in an envelope, it’s certainly harder to detect, but it is still considered a restricted mailing, and if the US Post Office discovers this violation, postage will certainly be increased.

All US-based nonprofit organizations should take the time to get approved to mail at the nonprofit rate-it’s 100% free.  If your organization is not already set up, click here to read my post that explains how to get approved and where to find the necessary paperwork.  For those that are already set up, partnering with businesses is a great strategy, as long as higher postage is paid when working with restricted industries.

Important Limitations Associated with Saturation Rate Mailings

Who doesn’t want to mail at the lowest possible postage rate?  Everyone wants to save money, but as with most bargain basement priced items, there are some inconveniences and limitations associated with saturation mailings.  Please read this post before diving head-first into a saturation mailing.

What are some limitations associated with the bulk mail saturation rate available in the United States?  The saturation rate only applies to those mailing to a “rural route” as defined by the USPS.  See my earlier post, Saturation Rate Mailings: The Cheapest Way to Go!, to determine if a specific target area is classified as a rural route.

To qualify for the absolute lowest saturation rate, bulk mail must be dropped off at the actual USPS “Processing Center.”  Many of the Business Mail Entry Units are not processing centers, and if a saturation rate mailing gets dropped off at one of these locations, the postage rate will be almost 5 cents a piece higher.  For those who are not located near a Processing Center, saturation mailings may lose their appeal when factoring in driving time and fuel costs.

Anyone preparing a saturation mailing must secure a signed “Statistic Report” from a qualified member of the USPS Business Mail Unit.  The function of this report is to identify how many addresses there are in a rural route.  This tells the mail carrier how many pieces are need to “saturate” the entire targeted area, and also allows the mailer determine how many pieces to print and deliver to the Business Mail Unit.  The Saturation Rate mailing will be refused by the Business Mail Unit without the “Statistic Report.”

When would you want to avoid using the saturation rate?  Anyone interested in personalization would want to avoid using the saturation rate, as this type of mail cannot be personalized.  The address field on a saturation piece mailer will display “Postal Customer ECRWSS” where the name would normally be printed.  This is hardly personal, so while it would not be well suited for an invitation to a social event, it may be perfect to announce the opening of a new sub shop.

Anyone wanting to target just businesses would want to avoid the saturation rate as the only option is to target “Postal Customer” which reaches all residents including businesses, or “Residential Customer” which captures all residents excluding businesses.  Sending to just the business address is not an option when using the saturation rate.

What’s the Next Best Option if this is not a Good Fit for me?  In circumstances where saturation rate mailings are impractical, cumbersome or too impersonal, presort standard rate bulk mailings are probably the next best option.  For about an additional 10 cents a piece, presort standard mailings allow personalization, can target businesses specifically, and they can be delivered to any Business Mail Unit (potentially saving a long drive).

Saturation Rate Mailings: The Cheapest Way to Go!

In a tight economy, every penny counts!  Saturation rate mailings offer the least expensive bulk mailing option in the United States.  Saturation rate postage costs even less than standard bulk mail/presort standard mail.  When using the saturation rate, the per piece postage cost can be as low as 13.9 cents a piece.

Do all mailings qualify for the saturation rate?  No only areas classified by the US Post Office as “rural routes” qualify for the saturation rate; “city routes” do not qualify.  The classification of a rural route does not necessarily means that an area has to be truly “rural.”

How can I check if my mailing qualifies for the saturation rate?  Click on “Find a Zip Code” in the top left hand corner of the main www.USPS.com website.  From there, enter an address in the area being targeted and click the “submit” button.  Click on the “Mailing Industry Information” link to the right of the address, and a box will appear; the “Carrier Route” is the top listing in the box.  If the carrier route starts with an “R” (Rural) or an “H,” (Highway) the mailing qualifies for the saturation rate.  If the carrier route starts with a “C” (City) it does not.  A note of caution: sometimes within the same zip code there are both rural routes and city routes, so don’t assume that an entire zip code is eliminated because a specific neighborhood is a city route.

Obviously, not every bulk mail campaign qualifies for the saturation rate.  However, there are valid arguments against using the saturation rate even for mailings that do qualify.  Stop back next Wednesday to read my post, “Important Limitations Associated with the Saturation Rate.”

2010 USPS Holidays

Don’t delay the delivery of your next mailing project because you’ve overlooked postal holidays!  The U.S. Post Office operates on the same schedule with the rest of the Federal Government, and with that in mind here are the dates that you will not be able to launch your direct mail campaigns:

• New Year’s Day – Friday, January 1st
• Martin Luther King’s Birthday – Monday, January 18th
• President’s Day – Monday, February 15th
• Memorial Day – Monday, May 31st
• Independence Day – Monday, July 5th (In 2010, the 4th of July holiday falls on a Sunday, so the government is recognizing Monday July 5th as a holiday for its employees).
• Labor Day – Monday, September 6th
• Columbus Day – Monday, October 11th
• Veterans Day – Thursday, November 11th
• Thanksgiving Day – Thursday, November 25th
• Christmas Day – Friday, December 24th (In 2010, Christmas actually falls on Saturday, December 25th, so the government is recognizing Friday, December 24th as a holiday for its employees)

Anything else I should know about postal holidays?  Bulk mail or presort standard mail (often referred to as 3rd class mail) is the last in line for attention by the USPS.  Nonprofit bulk mail is treated is treated the same as standard bulk mail from a delivery urgency point of view.  During postal holidays, the whole mail system can get backed up, and in addition to the day lost for the holiday, there’s a very good chance that an additional day or two can be lost as the USPS gets back up to speed.  With this in mind, it’s always a good idea to avoid scheduling time-sensitive mailing projects to drop the day before a USPS holiday.

Can I drop my bulk mail campaign on a Saturday? Although the USPS currently delivers mail on Saturday, the bulk mail unit of the US Post Office is not opened on Saturdays.

Lifestyle Mailing Lists: The Best Kept Secret For Attracting New Customers

Wouldn’t it be great if you could look into a crystal ball and find out who wants the products and services that you offer? In many cases, utilizing lifestyle mailing lists can help you find these illusive new customers.

What is a lifestyle mailing list? A lifestyle list is a list of prospects who share a common interest or passion instead of a common geography. The great thing about using a lifestyle select first when creating a list, is that the list can still be pared down using traditional selections like geography, income, age, etc. The net result is almost always a smaller list of better prospects. The financial benefit of this is a much bigger bang for the buck since the list is smaller, but response is typically substantially higher than using more traditional criteria only.

What information is typically used to create these lists? The number one source for most lifestyle databases is magazine subscriptions. It’s a safe bet that the majority of people who subscribe to “Horse Illustrated” probably like horses, and may even own one. Product registrations are another common source for this data. Signing up to receive coupons and special offers for certain types of products or services is another way this information is collected. Also, credit card purchases history can be used as a source for this information. The bottom line is that there are a variety of ways to compile this information, but the information is available and it’s what’s used to create lifestyle databases.

What sort of lifestyle lists are available? Some of the most frequently requested lifestyle lists are wine-lovers (used often by upscale restaurants) and avid golfers.

For those selling products to infants and moms, one of the most popular lists is the maternity list which is composed of women who are pregnant right now. It can actually be further sorted by the appropriate trimester. Related to this is the “new moms” mailing list that can pinpoint babies of a certain age; this list is a favorite for professional photographers.

For a theater or playhouse trying to sell ticket subscriptions the art & cultural events mailing list would be a great fit while art galleries may be more interested in the arts & antiques list.

For those marketing organic products, there is a “health foods and natural foods” mailing list available. Mailing lists based on religious affiliations and political parties are also available. People who enjoy knitting and quilting even merit their own lifestyle mailing list.

How do I know which list is right for me? Those considering using a lifestyle list to grow their customer base simply need to identify the hobbies, pastimes, or interests of their existing customers and look for a list that targets this data. This article identifies just a handful of the lifestyle lists that are available; there are thousands of other lists available that most people aren’t even aware exist. With this in mind, the only dumb lifestyle list question is the question that is not asked. Most list vendors will offer a free list count that will identify how many records are in a particular list, so it’s free to research what’s available and the size of the list. With this in mind, I am happy to offer a free count to anyone interested; simply click here to submit your request.