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Chapter – 4 Chapter – 4 CONSUMER AND BUSINESS CONSUMER AND BUSINESS

MAILING LISTSMAILING LISTS

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To To PromotePromote a new product or a new product or service or a new venture, or to service or a new venture, or to thrive in the growth stage of a thrive in the growth stage of a business, an organization needs business, an organization needs to to prospect for new prospect for new customers. customers. Even established organizations Even established organizations need new prospects to need new prospects to replenish (Complete) their replenish (Complete) their customer base.customer base.

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*Successful customer retention *Successful customer retention programs programs don’t’ keep 100 don’t’ keep 100 percent percent of customers. *Maintaining of customers. *Maintaining a a balancebalance between customer and between customer and prospect marketing efforts is one of prospect marketing efforts is one of the key to business success.the key to business success.Many organizations rely upon direct Many organizations rely upon direct mail for their main medium or as a mail for their main medium or as a support medium for their support medium for their prospecting efforts.prospecting efforts.

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Mailing lists can help them :Mailing lists can help them :Target businesses or consumers , Target businesses or consumers , Sell a product or service direct, Sell a product or service direct, Generate a lead, Generate a lead, Drive traffic into an on-line or off-line store, Drive traffic into an on-line or off-line store, Sell subscriptions, or persuade Sell subscriptions, or persuade contributors. contributors. They may also use television , radio , print They may also use television , radio , print advertising , co-ops, the internet , or the advertising , co-ops, the internet , or the other media to create new customers. other media to create new customers. They may even supplement with trade They may even supplement with trade shows or events .shows or events .

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Mailing List BasicsMailing List BasicsMailing lists are Mailing lists are not sold but rentednot sold but rented, , typically for a onetime use. If after testing typically for a onetime use. If after testing aa portion portion of a list, the renting of a list, the renting organization wants to remail or roll out the organization wants to remail or roll out the list(e.g., in continuation), it must pay an list(e.g., in continuation), it must pay an additional rental fee.additional rental fee.The List provider seeds the list with names The List provider seeds the list with names that come back to it in order to monitor that come back to it in order to monitor list usage. Companies that repeatedly list usage. Companies that repeatedly violate the rental agreement soon find violate the rental agreement soon find they are unable to rent lists from any they are unable to rent lists from any organization. organization. Seeding is a significant deterrent to abuse.Seeding is a significant deterrent to abuse.

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Specialty lists of hard-to-get namesSpecialty lists of hard-to-get names – such as – such as buyers of airplanes , sailboats, and exotic buyers of airplanes , sailboats, and exotic cars; small and large cap investors; and cars; small and large cap investors; and foreign lists – may rent for three to four foreign lists – may rent for three to four times premium! times premium! The Quality of the names and difficulty in The Quality of the names and difficulty in acquiring them is always a major factor in acquiring them is always a major factor in list rental costs.list rental costs.Hot-line namesHot-line names also are rented at premium also are rented at premium price. price. Hotline names remain a very popular Hotline names remain a very popular category of names to rent.category of names to rent.Some organizations choose Some organizations choose not to rent not to rent their their lists. But even they will often lists. But even they will often exchange lists with other exchange lists with other companies that companies that have noncompetitive offers.have noncompetitive offers.

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Types of Mailing ListsTypes of Mailing ListsThere are three kinds of mailing lists: House There are three kinds of mailing lists: House lists. Response lists, and Compiled lists.lists. Response lists, and Compiled lists.House Lists:House Lists: They are simply the databases of They are simply the databases of an organization; an organization; Considered the key asset of any organization , Considered the key asset of any organization , they include current customers , former they include current customers , former customers , and inquiries(i.e., prospects). customers , and inquiries(i.e., prospects). Because the house list is so important , it Because the house list is so important , it must be maintained and updated constantly.must be maintained and updated constantly.The word “customer” usually refers to an The word “customer” usually refers to an ““active ” buyer. active ” buyer. Someone who had Someone who had purchased within the last 12 months.purchased within the last 12 months.

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Response ListsResponse ListsResponse lists are the house list of other Response lists are the house list of other organizations.organizations.Response lists are made up of Response lists are made up of individuals who individuals who have exhibited a particular kind of behavior.have exhibited a particular kind of behavior.They may have responded to a They may have responded to a direct mail offer, direct mail offer, a print ad, a broad-cast commercial, via a print ad, a broad-cast commercial, via telephone , or on the Internet.telephone , or on the Internet.Response lists can be broken into number of further Response lists can be broken into number of further categories.categories.Buyers ListBuyers ListAttendee/Membership/Seminar Lists who attend Attendee/Membership/Seminar Lists who attend conference ,trade show ,eventconference ,trade show ,eventSubscription Lists; to news paper or publications Subscription Lists; to news paper or publications Donor Lists; contribute money to charitiesDonor Lists; contribute money to charitiesCredit Card Holder ListsCredit Card Holder ListsMerged Database ListMerged Database List

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Merged Database Lists:Merged Database Lists: This type of lists This type of lists includes the merged lists of companies that includes the merged lists of companies that often won’t rent theirs individually.often won’t rent theirs individually.Using the merged list simplifies the selection Using the merged list simplifies the selection process because duplicate names are process because duplicate names are eliminated.eliminated.

Compiled ListsCompiled ListsCompiled lists are made up of individuals or Compiled lists are made up of individuals or companies without any previous indication companies without any previous indication of willingness of willingness to respondto respond, but with some , but with some defined and identifiable characteristics such defined and identifiable characteristics such as as demographics , psychographics ,zip demographics , psychographics ,zip code etc.code etc. its useful for retail ,consumer its useful for retail ,consumer goods ,business offer . Its three kinds ; goods ,business offer . Its three kinds ; consumer complied lists, lifestyle and consumer complied lists, lifestyle and business complied listsbusiness complied lists

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Consumer Compiled Lists:Consumer Compiled Lists:Consumer compiled lists are created from a Consumer compiled lists are created from a number of different public and private sources. number of different public and private sources. Name , Address, and phone numbers are gleaned Name , Address, and phone numbers are gleaned from telephone directories and credit bureau from telephone directories and credit bureau records. records. Consumer Lifestyle Enhanced Lists:Consumer Lifestyle Enhanced Lists: Based on Based on lifestylelifestyleBusiness Compiled Lists:Business Compiled Lists:Typical firm graphics include,Typical firm graphics include,Standard Industrial Classification (SIC)Standard Industrial Classification (SIC)Annual SalesAnnual SalesNumber of EmployeesNumber of EmployeesHeadquarters or Branch OfficeHeadquarters or Branch OfficeGeographyGeographyBusiness Structure (e.g., corporation, subsidiary)Business Structure (e.g., corporation, subsidiary)Recent RelocationRecent Relocation

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ProfilingProfilingProfiling is a first step in understanding Profiling is a first step in understanding an organization's customers by an organization's customers by identifying demographics, firm identifying demographics, firm graphics, or lifestyle attributes of each graphics, or lifestyle attributes of each customer.customer.Appending this information to the Appending this information to the customer file adds valuable information customer file adds valuable information for targeting future promotions, for targeting future promotions, understanding customer defections, understanding customer defections, and identifying cross-selling and other and identifying cross-selling and other new business opportunities.new business opportunities.

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List Selection List Selection GuidelinesGuidelines

Description. Who is on the list?Description. Who is on the list?Affinity. A close relationship with the Affinity. A close relationship with the target group that the marketer is target group that the marketer is trying to reach.trying to reach.List Source. The origin of the names List Source. The origin of the names on the list.on the list.Renting Mailing Lists:Renting Mailing Lists:Mailing lists may be from list owners, Mailing lists may be from list owners, list managers, and list brokers. Each list managers, and list brokers. Each source has its strengths and source has its strengths and weaknesses.weaknesses.

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Evaluating Mailing ListsEvaluating Mailing ListsSteven RobertsSteven Roberts, president of list brokerage Edith , president of list brokerage Edith Roman Associates, Inc., notes that the following Roman Associates, Inc., notes that the following information, included in most data cards, should be information, included in most data cards, should be evaluated when deciding upon a list rental.evaluated when deciding upon a list rental.List sizeList sizeCost per thousandCost per thousandList description its sources, history, profile of List description its sources, history, profile of customerscustomersAverage order sizeAverage order sizePercentage of the list that is direct mail-generatedPercentage of the list that is direct mail-generatedHot line : responding customers who buyHot line : responding customers who buyActive versus inactive: his membership validActive versus inactive: his membership validList usage report: if its used by our competitors List usage report: if its used by our competitors for the same offerfor the same offerSelections available; is it include selection criteria by Selections available; is it include selection criteria by which could be segmentedwhich could be segmentedFrequency of updatingFrequency of updating

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List HygieneList HygieneAccording to the Direct Marketing According to the Direct Marketing Association," The most important step Association," The most important step every mailer can and should take is to every mailer can and should take is to improve list hygiene." improve list hygiene." Standardizing formatsStandardizing formats Merging multiple filesMerging multiple filesEliminating duplicates and Eliminating duplicates and Updating and verifying address Updating and verifying address elementselements are all critical steps essential to are all critical steps essential to maximizing deliverabilitymaximizing deliverability

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Applying List HygieneApplying List HygieneThere are number of steps that can be taken to clean There are number of steps that can be taken to clean

lists before mailing. They are:lists before mailing. They are: List StandarsationList Standarsation Editing and ReformattingEditing and Reformatting Merge/PurgeMerge/Purge Verification and CorrectionVerification and CorrectionPrivacy:Privacy: Questions of data compilation and usage are Questions of data compilation and usage are

sensitive. Many consumers and businesses alike view sensitive. Many consumers and businesses alike view them as privacy issuesthem as privacy issues

Unauthorized access is focused in three areas:Unauthorized access is focused in three areas:1.1.FraudFraud2.2.Identity theftIdentity theft3.3.AnonymityAnonymity

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The Direct Marketing Association has The Direct Marketing Association has two services available free of charge two services available free of charge for consumers:for consumers:Mail Preference (MPS):Mail Preference (MPS): Which enables Which enables individuals to receive less national individuals to receive less national advertising mail by having their advertising mail by having their names removed from many national names removed from many national mailing lists.mailing lists.Telephone Preference Service(TPS):Telephone Preference Service(TPS): which enables people to receive fewer which enables people to receive fewer telephone sales calls in their homes telephone sales calls in their homes by removing their names from many by removing their names from many national telephone sales lists.national telephone sales lists.

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PrivacyPrivacy concerns often arise when concerns often arise when information collected for one purpose is information collected for one purpose is subsequently used for other purposes. subsequently used for other purposes. Concerns abate when mailers and lists Concerns abate when mailers and lists renters offer consumers the opportunity to renters offer consumers the opportunity to object to this reuse. object to this reuse.