Q: How do I set up a direct mailing list?
Jun 14 2010
Answered by: Marc Barber Ask a question
An increasing amount of sales activity takes place by direct mail, either by post, by fax or now by email. Even if you close the sale by a face-to-face meeting, direct mail is usually the first stage in the sales process to filter and screen the prospects.
However, many products can be sold simply by direct mail without any follow-up stage. The key to a successful direct mail campaign to attract new customers is to have a very clear idea of your likely customer and to select a mailing list to match that profile. The second most important factor is to be careful about the letter or mailer that you send, the offer that you make, the envelope, even the postage that you use. All these details can be incredibly important in raising or lowering response rates.
The list
You can compile lists yourself from different sources, carefully chosen to include who you believe to be potential customers. You can buy a licence to use lists from list owners or through list brokers. In this case, you are buying the right to use the list usually either just once in a 12-month period or multiple times during a specified period. Increasingly, you can buy lists online for immediate download from websites such as marketingfile.com (consumer and business lists) and www.businessailing.co.uk (business lists).
Try to make sure that any list you buy is responsive: that is, the people on it are proved to have bought previously as a result of direct mail. The list should also be recent; lists over 6-12 months-old decline in responsiveness.
The price for a consumer list that is recent and responsive might typically be around 16p to 22p per entry for single use (so £160 to £220 for every 1,000 names and, say, 28p to 44p per entry for multiple use). But watch out, because list owners tuck in all sorts of other expenses and selections that increase the price.
Response rates of 1 or 2 per cent for mailing a list that you have bought or compiled would be good.
Lists should be regularly cleaned and the names of people who have died, moved away or have asked for their names to be taken off should be deleted. When you buy a list, if you find that the number of returns is over 2 per cent, say, you should be able to get a refund. Unfortunately, the amount of the refund is likely only to be for names, not the wasted postage or mailer.
The offer
Typically, you devise an offer that makes what you want to sell look attractive. For example, you might be able to offer a discount. Or you might be able to offer some sort of extra. The trick is to give recipients the feeling that this offer is particularly good and not likely to be bettered.
You might also offer a free product or sample of something if the recipient responds within a number of days. The difficulty with direct mail is to generate action by the person receiving it. So the notion that something extra is on offer for a prompt reply is attractive.
The mailer
Gradually, you will find out what style of mailer best fits your target market. But it could be something simple like a letter with a flyer. Or it could be more elaborate.
There needs to be some sort of strapline to attract the reader’s attention. Otherwise, it might be consigned to the bin, like the other 99 per cent. And the copy can be highlighted to emphasis particular words.
The envelope
Some mailers include messages on envelopes to encourage people to open tem rather than stick them in the bin. You could mail using stamps or franking to give your mailer more of a personal touch, but this is expensive. There are now 25 licensed postal operators in the UK (including Royal Mail) and they offer a variety of cheaper mailing options. For example, you may get discounts if you pre-sort your mail shot into postcode areas.
Mailing services are cheaper if envelopes are not personalised or individually addressed. But this might lower the response rate. You have to weigh up what is more important for you.
The website of Postcomm (www.psc.gov.uk), the mail regulator, has a useful list of mail industry suppliers, outlining the direct mail and other services they offer, with links to their websites.
The law
Anyone collecting or using data lists needs to establish whether they need to register with the Information Commissioner. You will not have to register if you collect data or buy stat lists solely for the purpose of marketing your own goods and services. But, regardless of whether you need to register, you must comply with the principles of data. Click here to find out more.
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