Question: What's one of the biggest reasons that direct mail campaigns fail? Answer: Because a poorly targeted list was used. While the mailing list is the number one influencer of the success of your mailing campaign, typically very little brain-power is devoted to crafting the right list. This is a tragedy that small businesses, large companies and nonprofits are all guilty of. If you think you may be guilty of this, read on to find out how to make sure that you're taking the right steps to select the best possible mailing list for you.
Who is your target market? Please DO NOT say "anyone and everyone," or "anyone with a pulse." Why? For a variety of reasons:
1) Budget constraints: Very few organizations have the marketing budget to be able to afford to market to everyone and anyone. Even organizations with large budgets and mass appeal recognize that it's not profitable to try to reach everyone, so they will typically pinpoint the most profitable segments of their target audience and direct unique marketing campaigns at each specific segment.
2) Relevance: The less well-defined a target market, the less relevant the marketing message. Why is this important? People will NOT respond to a message that is not relevant to them. For example, if you own a store that sells fine imported cigars, you may think that it would be a good idea to target the closest people to your store-right? In fact, this is the default approach that almost everyone takes to direct mail marketing BUT in almost all cases this is NOT the correct approach. In fact, the hypothetical cigar store-owner would be much better served to target subscribers to a magazine like "Cigar Aficionado." Are mailing lists like this available? ABSOLUTELY! However, just like the title of this post, most people don't know what they don't know, and instead of asking questions, they make poor decisions about the list they use for their marketing. Remember, the list is the most important part!
What sorts of lists are available? Lifestyle Mailing Lists may be the absolute best for identifying targeted prospects. These lists looks at people's passions and hobbies-they are very well suited for establishing an emotional bond with prospects. Magazine subscription data, purchase habits, product warranties and surveys all help to profile people who end up on these lists. The earlier example of people who enjoy smoking cigars qualifies as a lifestyle list. Could there be a lifestyle list that pinpoints your target customer demographic?
For medical professionals, drug companies and makers of medical equipment, there are actually lists of people with specific medical ailments. For instance, there's a list of people who suffer from asthma-what a great prospect list for allergists! The information on all of these lists is self-reported, typically at health fairs, and therefore it does not compromise the person's confidential healthcare records. Does your product or service improve the quality of life for your customers or does it help them to stay healthy? If so, a medical ailment list may be a great option for you.
For those targeting other businesses as prospects, business lists are the logical choice, right? Yes, but in addition to targeting by industry and geography, you can also target by number of employees, number of years in business, estimated annual revenue etc. Leveraging these more specific criteria allow you to identify a more targeted list. For instance a company could target simply plumbers, but they may find that plumbers who have been in business for at least 2 years and have at least 10 employees are a better fit for their product or service. How would you know which criteria is best? Look at the makeup of your existing customer list.
Of course there are even lists of charitable donors; these may be the perfect choice for nonprofits that are looking to grow their donor base. These lists tap into people who already have a history of supporting charitable causes by making donations. This certainly leads to higher conversion rates than a list created based on geographic criteria alone.
To summarize, you should work really hard to define a specific target market. This will not only maximize your limited marketing budget, but it will assure that the communication you send to your target audience is relevant. Remember, the default mailing list targets people or businesses in the closest zip codes, but there is almost always a better list available that captures your true target audience. Ask questions and FIND the list that will get you the best return on your investment. A superior list will take a marginally profitable campaign or an unprofitable campaign and make it profitable.
Incidentally, if you're wondering about mailing list options for you, simply click here, and I'll be happy to do a little homework and help to research a targeted list just for you!
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