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

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.

Finding New Customers by Identifying the Right Residential Database

Looking for new customers?

Most businesses are, especially with the current economic malaise. Do you provide products or services directly to consumers? If so then identifying a qualified residential database is the first place to start.

Research consistently confirms that the most important characteristic of any attempt to attract new customer is the quality of the database.

How do you get started identifying the right database? When a business is locally based, then geography is certainly the first place to start. Those new to purchasing lists think in terms of zip code, city or county, but one of the most efficient ways to target prospects in a local area is to target potential customers with a certain radius of a business.

What else do you need to know about geography? The most basic classification within a residential database is to segment by owners versus renters. It’s common to exclude renters from a list because homeowners are often considered a more stable and financially secure target audience. Within the ranks of homeowners, the next basic split is between single-family homeowners and multi-unit owners (a.k.a. condo owners). Someone that’s trying to grow their landscaping business would be very interested in single-family homeowners, but not at all interested in people living in a high rise or condo.

What about targeting by income? Again, novices looking for lists gravitate toward targeting prospects based on their income level. My advice is to be very careful here, especially for those targeting an older demographic. In many cases, using assessed property value is a more accurate measure of wealth than income. Someone may have a net worth in excess of $10 million dollars, but may report very little or no actual income because they are retired. In this scenario, assessed property value offers a much better criteria for qualifying the purchase power of the prospect.

Wealth modeling is another technique that can be used to determine an individual’s net worth. In this scenario, a variety of factors are combined to estimate someone’s wealth; these include income, property value, investments, chartable donations, and purchase history. Again, this is typically a superior way to target wealthy individuals instead of looking at income alone.

Is the mailing list really that important? 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. In my experience as a direct mail professional, I can attest to the fact that the mailing list is the single most important factor in determining the success of a direct mail campaign, and it is, unfortunately, the element of the campaign that is most often neglected or overlooked.

Click here to learn about using psychographics and lifestyle mailing lists as an alternate way to target prospects. Please take a moment to share your comments or questions below.

Cardscan: Your Virtual Administrative Assistant

This post is for anyone who ever wished that they had the luxury of a personal assistant, but doesn’t have the financial resources or title to merit one. It’s for those engaged in networking who receive dozens of business cards per month; professionals in sales, marketing or management are logical candidates, but this tool will work for anyone who wants to keep in touch with new contacts while using the least amount to time.  

What is a Cardscan? The concept behind using a Cardscan is simple: instead of relying on data entry to update new contact information from business cards, cards get scanned into a mini scanner and an electronic database is instantly created. Anyone who purchases a Cardscan receives the mini scanner & a cord that plugs into the USB port of their computer. Not only is an electronic copy of a business card created, but OCR (Optical Character Recognition) software is used to take all of the text off of the card and convert it to an actual database. Since the software is not perfect, users have the opportunity to review the record before it is finalized to make sure that all information was captured correctly and attributed to the appropriate fields in the database. At this point, the physical business card can be recycled, or filed away if a physical copy may be needed in the future.

All of the information is captured off of any business card that is scanned into Cardscan. This includes not only the e-mail address, but also the physical address, phone, fax, business name, the person’s name and their title.

Where can I get a Cardscan and how much does one cost? Cardscan can be purchased directly from the Cardscan website, but I purchased mine from Amazon because they had a better price; on Amazon the CardScan Personal v8 Card Scannercurrently retails for $139.95.

What are other benefits of a Cardscan? The online component of Cardscan provides a secure back up for all of the owner’s contacts that can be accessed from any device with internet access. Let’s face it, nobody likes to think about their computer breaking, getting attacked by a virus, or getting lost or stolen, but Cardscan is a fantastic way to back of critical databases.

Another important feature is that Cardscan can be set up to integrate with most major contact management systems including Outlook, Outlook Express, Palm Pilots, ACT, Goldmine, etc. In my case, I use the Cardscan info to update both my ACT database and e-mail addresses in my Outlook address book.

Finally, Cardscan can be used to periodically send out automated e-mails to contacts to see if their contact information is still current.  This option can also be turned off, but when activated, it takes care of this task automatically.  The benefit of this is that the Cardscan owner is notified when any contacts get promoted, move, or in some cases get a new job.  A database’s value can be maximized only when all of the information is accurate and up-to-date.

Almost all books dealing with time management emphasize spending time on the things that people enjoy doing and on tasks that maximize their skills & abilities.  In an ideal scenario, someone can rely on an administrative assistant or coworker to help with unproductive, time-consuming tasks like data entry, but in reality, this is not an option for many busy professionals because they don’t have staff, or they don’t have staff with the right skills available to help; for people in this category, Cardscan may be a great solution.

Do you have any time-saving recommendations for busy professionals?  Please use the comments section below to share.

Identifying New Customers with Business to Business Mailing Lists

The current economy has just about everyone scratching their heads trying to figure out how to drum up more business, and fill the gaps left by existing customers who have cut back or gone out of business. Using business mailing lists to target new customer prospects is a cost-effective and proven method to solve this problem.

What type of data is available on these business to business lists? Business lists have much more robust levels of information available than standard residential mailing lists. Business lists typically provide the name of the CEO, president or owner, the number of years in business, the number of employees, and estimated annual revenue. The U.S. Federal “Do Not Call” legislation does not apply to businesses, so the business’s phone number is almost always included with the address records as well.

As a result of this high level of information, business lists are not only suited for direct mail campaigns, but they are also well suited for phone campaigns. In order to increase the response rate of new business prospects, the most successful formula involves sending a series of direct mail pieces to introduce services and then following up by phone with the decision-maker that is listed as the contact.

How can business lists be targeted?

Target by geography: As with residential databases, geography can be used to target business databases. This includes specifying zip code, city, county or state, and also includes the ability to target prospects within a certain radius of a listed address.

Target by industry: For a business whose products or services cater to specific industries, it certainly makes sense to target the list by industry. For those that are more technical, an industry can be defined using either a SIC (Standard Industrial Classification) code or NAICS (North American Industry Classification System) code, but typically this level of technical information is not necessary to request a count or acquire a list; most list vendors will allow anyone searching for a business list to simply provide the name of the industry or industries that are being targeted.

Who should consider purchasing a business database? Any business with other businesses as targeted customers should consider purchasing a business database. Businesses of any size with well-defined vertical markets are especially good candidates for purchasing business databases. For instance, instead of just targeting medical doctors, a business list could focus more specifically on pediatricians, cardiologists or plastic surgeons.

What are some recent examples of business to business mailing lists that have been requested? I recently worked with a small business owner who was targeting medical doctors; his company offers solutions to transition doctor’s offices to federally mandated electronic medical records. This business list focused on just 2 specific counties in Florida and excluded certain types of medical professionals. A series of introductory mailings were used to invite the doctors to several educational seminars, and then telephone follow up was done to each office to reinforce the message, and to further identify the decision makers and influencers.

In another example, I worked with an insurance professional who offered a specific commercial policy for landscaping professionals. The policy was best suited for companies with at least 10 employees, and the agency had discovered that is was a better use of their time and resources to target only landscapers who had been in business for at least 3 years. The insurance company then applied these criteria within the geographic areas where they had licensed agents.

As an added benefit, targeted business lists invariably lead to more relevant messages for the target audience. It made a lot more sense for the insurance company in the example above to say “We specialize in landscape businesses” instead of “We provide business insurance.”

For anyone considering acquiring a business list as a way to grow their business, keep in mind that most list providers will provide a free count of any requested list. For more information, see my post from last week, “How to Find the Right Mailing List.”

How to Find the Right Mailing List

Developing a prospect mailing list is a fantastic way to identify new prospects, and increase revenue. Most list providers have made it very easy to make free inquiries to determine exactly what is available, how large a list is, and how much it costs, before purchasing the mailing list.

Where can I find targeted business or residential mailing lists? There are 2 basic sources for mailing lists: self-service providers and full-service providers.

What are the pros and cons of working with a self-service provider? In the self-service model, a user establishes an ID & password with a web-based company and selects the relevant criteria for his or her list. Typically, the list is available for immediate purchase, or download.

In my opinion, a web-based provider is better suited for people who order lists on a consistent basis. Web-based providers expect the person ordering the list to have a very good understanding of what sort of selection criteria is available and what criteria is relevant to their search.

The major benefit of web-based providers is quick access to counts and typically quick access to purchase a mailing list.

Some web-based vendors will not provide an Excel version of the purchased database. They may only offer printed address labels, or provide a proprietary format that enables the printing of address labels but not actually obtaining possession of the database.

When questions arise, interacting with web-based vendors may involve accessing the “help” section of their website instead of actually being able to ask questions directly by phone or e-mail.

What are the pros and cons of working with a full-service company? A full-service company is almost always a better option for someone who is ordering a list for the first time, or for someone who orders mailing lists infrequently. In this scenario, free counts can be requested via web form or e-mail, or by phone. While the information is often not available immediately, it allows the requestor to be more interactive, and ask more questions about the list that is being sought. Full service vendors may also be able to offer helpful suggestions which identify previously unknown search criteria or lists; this could lead to identifying a better prospect mailing list.

How can I find a company that can help me with my mailing list? Of course, the best scenario is to get a referral from a trusted source, but if this is not an option, a simple Google search will yield the largest web-based mailing list providers. However, someone seeking a prospect list comprised of local businesses or residents should consider using an online yellow pages directory like www.superpages.comThe online yellow pages will also be a better means for identifying a full-service provider that can address questions from those less familiar with ordering mailing lists. Those purchasing a list for the first time should always ask for references or testimonials.

What is the most common mistake made when ordering a mailing list? People incorrectly assume that a larger list is a better list, when, in fact, the opposite is more often true. The goal of any successful mailing campaign is to generate as much business as possible for the smallest possible investment. A smaller, more targeted list directly results in reduced printing and postage costs, not to mention the cost of the list itself is usually less. In fact, research from John M. Coe’s book, The Fundamentals of Business-to-Business Sales & Marketing indicates that 50% -70% of the success of a mailing campaign is determined by the mailing list. Based on this, it only makes sense for anyone considering acquiring a prospect mailing list to have a clear understanding of what demographics they are after, and what type of lists are available. Getting the mailing list right is the first and most important step to assuring a successful campaign.

What is a Business Reply Permit, and Who Should Get One?

Anyone looking to increase response rate for a solicitation, or R.S.V.P. should consider investing in a Business Reply Permit. Simply stated, a business reply mailer allows someone to respond to an offer without having to affix a stamp or spend any money on postage.

What kind of organizations should consider getting a Business Reply Permit? Nonprofit organizations are probably the best candidates for a Business Reply Permit, although businesses that routinely mail product offerings to existing clients or new prospects may be good candidates as well.

How exactly does it work? An organization that gets a Business Reply Permit only has to pay postage on mail pieces that are actually mailed back. For instance, if 10,000 pieces are sent out, and there is a 3% response rate then postage will be due for only the 300 pieces that were mailed back-not for the entire 10,000 pieces.

What are the benefits? Clearly, the largest benefit is an increased response rate. In the scenario where a person sincerely intends to mail in a charitable donation, but doesn’t have or cannot locate a stamp, using a Business Reply envelope makes a lot of sense. Statistics show that the challenge with direct mail is that response rate drops dramatically if people do not act shortly after opening their mail. Studies done using a control group with a Business Reply envelope consistently have higher response rates than those requiring respondents to affix a stamp.

Additionally, a business reply envelope facilitates a quicker response because of the fact that the address is already converted into a U.S. Post Office approved barcode.

How much does it cost? There are 2 types of Business Reply Mail: standard and high volume. The standard version has a much lower annual investment of $185 and is the appropriate choice for the majority of organizations, particularly for smaller organizations. The high volume version requires an annual investment of $770. The larger investment, however, leads to a substantially reduced per piece cost. While the high volume permit has a per piece cost of regular first class postage plus 8.3 cents, the standard permit has a per piece cost of regular first class postage plus 74 cents. This means that for a standard 1st class sized letter, postage using a standard business reply would be (44 cents + 74 cents) $1.18 a piece. Some quick math shows that organizations expecting to receive 890 or fewer responses in a calendar year should opt for standard Business Reply Mail.

Does a Business Reply Permit make sense for my organization? To determine if a Business Reply Permit is merited, the organization doing the mailing needs look at both the costs associated with using the permit and the dollar value attributed to the increased response rate.

How can I get a Business Reply Permit? A knowledgeable mailing industry professional or the Business Mail Unit of a local U.S. Post Office are resources for assistance with getting set up with a Business Reply Permit. A more detailed description of the costs and other details associated with getting a Business Reply Permit is listed on Form 507a . Additionally, the application can be printed directly from the official USPS website, and completed in advance or filled out with the assistance of the postal staff at a local Business Mail Unit.

How to Increase Responses from My Mail Appeal?

Guest post by Lori L. Jacobwith, communication & fundraising strategist who helped helped organizations generate nearly $90 million from individuals.

www.twitter.com/LJacobwith

www.lorijacobwith.com

It’s heading into the time of year when I receive LOTS of fundraising appeals via mail. I’m often asked about what to expect on the return from the mailing. I find it interesting that I am being asked that question just about the time the mailing is going out. What concerns me is that organizations don’t ask that question all year long. If we ask the question: What are we doing to keep our donors informed, connected and reminded about the impact of our work? I guarantee your annual appeal response rate will be much higher.  

I’ve heard Penelope Burke speak a few times over the years. She’s written the book Donor Centered Fundraising based on thousands of donor surveys and she recently released a new donor report, Philanthropy in A Turbulent Economy. The following are some stats she shares that stand out for me as you make the effort to increase your annual appeal response rates:  

From Penelope’s open-ended question research:

DONOR QUESTION: Once you’ve made a 1^st contribution – what would cause you to remain loyal and/or increase your giving?

1.   87% said whenever they give they wish to be acknowledged promptly and in a meaningful way. – THIS INSPIRES MORE GIVING!

2.   In the thank you letter, include some confirmation of where the gift is going. Specific child…program or service.

3.   Before you ask me again…I want a meaningful report on how you used the gift. So this ties into the specifics on where the gift went that you identified in the thank you letter.  

People are very sensitive to the period between when they first give and the next appeal. Donor attrition is approx. 60% in that space.

If donors don’t get what they want or need IMMEDIATELY then they move on or stop giving at all for awhile.

44% said promptness alone could inspire another gift. (Within 48 hrs they should receive the personal thank you call and within two weeks – the letter)

My recommendation is to develop an annual communication plan to keep donors connected and engaged and informed ALL YEAR LONG.

Suggested tasks for your communication plan:

·     Have your board of directors assist with making thank you phone calls as contributions arrive. Do this either at board meetings for just a few minutes each month or distribute calls to the board in between meetings.

·     Share information about the good news and the “not so good news” monthly at your organization via 250 word or less email messages that have been carefully crafted to inspire and inform. These should be sent from the executive director or board chair.

·     Share stories about the people you serve. Stories can be a few lines or a few paragraphs. Keep them short and interesting. And they don’t have to have a happy ending to be compelling.

·     Make sure to have personal (phone or in person) contacts with segments of your donors (donors who have given the longest, or largest gifts) annually and track this in your database.

Putting the time to stay connected and keep your donors informed the other 11 months of the year can and WILL increase the response rate for your direct mail appeals.

For more blog updates from Lori Jacobwith visit www.lorijacobwith.com/blog