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.

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!

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).

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.

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.

Secrets to Cloning Your Best Customers

What if you could walk into your office tomorrow, press a button, and clone your best customers?  Does this sound far-fetched or impossible?  It’s actually much closer to reality than most small business owners and marketing professionals realize.

How can I clone my best customers?  The first step is to identify a trusted vendor who specializes in data modeling services, and then send them the customer list.  These services are offered both online and typically by local vendors.  Since customer information is extremely sensitive, interested parties should always ask for several references before engaging a vendor. 

What barriers exist?  Certain industries like health care or financial planning may have compliance barriers that need to be cleared before any information can be released to third parties.  This may mean privacy releases need to be signed, or it may prevent the exchange of data altogether.

What can I expect in return?

Valuable information about your existing customers: Reports identify common characteristics within the existing customer list-so why is this important?  This is important information because a savvy marketer can create campaigns with emotional appeals that correspond to the interests of the existing customers; this leads to a more engaged customer, and ultimately more business. 

For example, if the reports indicate that 70% of current customers enjoy opera, then a marketing campaign would scream for a new business pitch that includes 2 free opera tickets.  Similarly, high percentages of customers who enjoy golfing, fishing, boating, tennis or knitting may lead to the creation of marketing campaigns catering to these pastimes.  Remember, customers are always listening to “WII FM” (What’s In It For Me).  Leveraging customer information is the key to tuning into customers and their interests.

Additional data about specific members of the original customer list: This is extremely useful for executing a marketing campaign that resonates with a specific subset of the customer audience.  For instance, a group of specific customers could be targeted to launch a new product specifically designed for children.  Members of the existing customer audience who were flagged with the “presence of children” would certainly be more interested in these kid-oriented products.  Grandparents can often be identified when lists are analyzed, and they are another ideal target audience for children’s products.  There are many other valuable pieces of information that can be compiled from members of an existing customer list including marital status, income, assessed property value, favorite pastimes, etc.  Knowledge is power, and this information can be used to further segment customers, and to craft smaller campaigns that resonate with the appropriate segments.
 
Something very close to a cloned customer mailing list: One of the best ways to leverage information from an existing customer list is to have a modeled list created; a modeled list is a new list of customer prospects whose interests and demographics closely match those of the current customer database.  This is as close to “cloning” existing customers as possible, and is widely recognized as one of the most effective and efficient ways to grow a customer database.

What are the additional benefits?  When analysis is done, customers on an existing list who have relocated or passed away are identified.  Nobody wants to mail to customers who have passed away, so this information can be used to purge these customer records from the list.  Relocation information can be used to either update address information in the main database, or to purge records from a list completely for businesses with strictly locally based products or services.

The bottom line is that in any mailing campaign, the database is by far the most critical indicator of success. 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 based on the mailing list. This information can be used to grow the customer list and to assure the profitability of future campaigns.

How To Grow Your Charitable Donor Mailing List

Death, relocation, bankruptcy, and donor apathy are just a few reasons that loyal donors stop giving money.  For nonprofits seeking to grow or even maintain the size of their current database, it is critical to target prospects with a high likelihood of conversion and bring them into the fold.  The million dollar question is “Where can I find more donors like the ones I have?”

Is there such a thing as a Charitable Donor Mailing list?  Yes, charitable donor mailing lists do exist throughout the U.S. and in some foreign countries.  If there are no other defining criteria, then this is probably the best place to start building a prospect list.  A common temptation is to solicit individuals based on some measure of wealth like income or their neighborhood; while this may indicate that they have means, it is not an indication of willingness to support a charitable cause.  A better approach is to start with the charitable donor list and then filter by the criteria that match an organization’s current donor demographics; this can be done using age, income, marital status, presence of children, etc.  A list compiled in this fashion will provide a prospect list of individuals who have both the desire and ability to give.

What other types of lists make sense for nonprofit solicitation?  This depends on the mission of the organization doing the soliciting.  For instance, within the charitable donors list, there is a subset of individuals who support causes related to wildlife and nature.  In another scenario, an organization that supports military veterans could acquire a list of individuals with a history of military service as they would be more likely feel a connection with the cause.  If an organization’s cause relates to political preferences, or religious preferences, these audiences can be targeted as well.

There are other lists available that target individuals by lifestyle; these lists are typically compiled based on magazine subscriptions, product warranties, purchase habits and survey information.  For instance, an organization like the Special Olympics may choose to target people who are active in sports because they better understand the positive benefits of exercise.  Another group who seeks to preserve historic buildings may choose to target individuals classified as history buffs.  The key here is to identify a segment of the population that has an emotional connection to the organization’s cause or mission.

Can I just buy an e-mail list of prospects?  While e-mail may be a great tool for re-solicitation, it is very difficult to use for prospecting.  “Prospecting” here is defined as approaching people who have never before donated to the charitable organization doing the soliciting.  As a result of the U.S. Congress’s passage of the Can-Spam Act of 2004, most reputable list brokers will never release the e-mail addresses directly.  Some reputable list vendors will allow solicitation to select people via e-mail indirectly; in this scenario, the organization who pays for the service never receives the e-mail addresses.  This requires a very high level of trust with the organization providing the service.

The bottom line is that growing the donor base is an investment in an organization’s future, not an expense.  A short-sighted individual will point out that the cost to acquire new donors is typically greater than the amount collected in donations during the initial mailing.  An individual with a long-term view understands that donor re-solicitation over time will sustain an organization and enable it to grow.

Just How Important is an Accurate Mailing List for Nonprofits?

Mal Warwick, one of the foremost experts on the use of direct mail for fundraising, addresses the critical importance of the mailing list in his book, Revolution in the Mailbox. He concludes that your list selection determines on average 50% of the success or failure of a mailing campaign; this statistic or a slightly higher one, is supported by  many experts across the industry.  Since your mailing list is such a vital component of the success of your mailing campaign, then it’s critical that you have the most current address information for everyone on your list. 

What are the current U.S. Post Office requirements for List Hygiene?  The US Post Office requires your list to be updated using an approved method every 95 days to qualify for your bulk mail discount.  Now when your bulk mail paperwork is submitted to the U.S. Post Office your signature confirms that your address records have been updated within the last 95 days, and it further requires you to identify what system you used to do the update.  Here is a link to the Nonprofit Mail Postage Statement if you want to review the approved “Move Update methods” or if you want to review the “certification” that indicates what your signature on the form is certifying.

What if I work with a 3rd party mailing house or marketing company to have my bulk mailings processed?  If you are working with a mailing house to address and process your mailings, then it is the responsibility of the mailing house to perform the update.  For you to have a sense of confidence that your list is being updated by a mailing house, they should be able to identify which approved method they are using to update your list, and they should be willing to provide you with a copy of the paperwork that they are submitting to the U.S. Post Office.

Why does the USPS care if my mailing list is accurate?  The U.S. Post Office has taken this step because it is very expensive and time consuming for them to handle mail with bad addresses. 

What are the consequences of failing to update my list?  At the very minimum, the Post Office has the right to disqualify the discount that was provided for your mailing; this means that you could be responsible for paying the difference between the reduced postage rate and the normal first-class postage rate.  In addition, you can be fined for an amount in excess of this if the U.S. Post Office sees fit.  Finally, the Post Office suggests the possibility of other more severe charges if they suspect fraud or abuse associated with the discount that they are providing.

The bottom line is that it’s in your best interest from both a compliance and a return-on-investment point of view to make sure that you have an accurate mailing list.