A complaint filed by the Citizens for Responsibility and Ethnics in Washington (CREW) says that Newt Gingrich, Republican presidential candidate, has unlawfully sold his mailing list for $42,000.  Whether Newt was unlawful or not, is it possible for a mailing list of this kind to be worth the amount paid?

Before we jump to conclusions, let’s look at how mailing lists are valued.  Certainly, if the list will be used for direct mail purposes, and said direct mail campaign performs as expected, the answer is yes.  But, has the list been proven to respond?  How many records are on his mailing list?  Is it for one-time use or can the mailer use it more than once?  How clean is the list?  Here’s how BB Direct would value the mailing list before adding it to our mailer’s recommendations.

1.       Who’s on the list?
Let’s make the assumption that Newt has a mailing list of contributors to his campaign.  Are these political donors all responders from a previous direct mail campaign or from a variety of campaigns?  Furthermore, are they all from direct mail responders or is a portion of Mr. Gingrich’s mailing list from friends, associates, and golfing buddies?  This matters because to get the most out of the mailers direct mail campaign investment, they will want the language and offer of the campaign to best resonate with the recipient.

2.       How large is the list?
A typical political donor file goes for anywhere between $80/M and $150/M (M=1,000 records) for a one-time use.  Let’s assume that Newt’s salesmanship is better than most and he’s able to get the highest price for this kind of database ($150/M).  If that’s the case, the Gingrich mailing list is 280,000 people long ($42,000/$150).

3.       Is the mailing list worth $42,000?
First, let’s look at what Newt disclosed so far to the Federal Election Commission.  According to their website, Newt has received $2,910,879.  Though we cannot assume that every donor gave the same exact amount, let’s use what we have for valuation purposes.  So, $2,910,879/280,000 donors = $10.40.  Now, likely, there are many donors who ponied-up a bit more, but for those who gave more, many more gave much less.  Should anyone mail this total number of 280,000 people, the numbers simply do not add up.  I mean, let’s put some made up numbers to it.  With a standard direct mail cost of $1.42/per piece, a direct mail campaign to this audience would run $297,600.  Now, let’s assume the mailer get greater than average response of 3%.  The total number of responders would equal 8,400.  So, to break even on their direct mail investment, they would need to generate at least $35.43 dollars in profit from each and every responder just to break even.  So the mailer would have to generate more than 3 times what Newt was able to generate from these very same people.  Brian Berg, President and CEO of BB Direct, concludes, “Newt Gingrich’s mailing list is definitely not worth $42,000.  I’m more likely to assume that Newt put his best salesman foot forward and convinced the buyer that they can do 3 times better than he has done”.

BB Direct recommends that all mailers evaluate their break-even point on this type of investment prior to launching.  To find your direct mail campaign break-even point, click here.

BB Direct is a provider of targeted mailing lists, list enhancement services and database hygiene processes.  If you’d like more information on how mailing lists are valuated, please visit us at www.bbdirect.com.

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There are essentially two ways to use email marketing; broadcasting your email message to a known audience of existing customers, members, warm prospects, and broadcasting your email message to an audience which has no prior affiliation with you and your business.

Existing Customers

The first type of email is when you want to reach your existing customers. This group of people have done business with your company or organization, they recognize your brand, they likely use your product or service. Like postal direct mail marketing, this type of email broadcast is typically far more successful in terms of response.

New Prospects

The second type of email is when are attempting to grow your existing customer database using email. You broadcast to the most likely audience of non-customers, in hopes of getting an introductory opportunity for them to learn more about you, your company, or your product and service. In this example, your response is dependent on a number of factors.

Factors For Success

Targeted Email List – With email marketing, the targeted list must be both targeted and deliverable. The email must point to the most likely responder audience, but also must broadcast out of a “white hat” listed server. If not, the email will likely end in the trash.

Relevant Offer – No matter how well you’ve discounted your product or service, it’s got to be right for the audience. No sense in inviting parents with children to a single club outing.

Brand Recognition – It’s been proven time and time again, the more popular your brand, the more likely your message will be read and considered. Therefore, if your targeted audience isn’t familiar with your brand, it’s important that the email include the most recognizable name, product or service in order to get opened.

Before you invest in any direct marketing, you’ll likely benefit from a no cost evaluation from one of our experienced email marketing experts. Give BB Direct a call before your next project at 866-501-6273.

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Targeting the right audience is just as crucial to a direct mail marketing campaign as avoiding those who are simply not going to respond to your offer.  What if your typical mailing list audience just read a profoundly influential or inspiring book such as Steve Jobs biography?  And in doing so, they experienced a paradigm shift in the way they think about technology, art, business philosophy, and ultimately, their interest in your product or service.  Can reading the right book affect the way you once responded to direct mail?  What about a movie, a lecture, and sermon, or late night conversation?  The answer is, of course, yes.

Considering how fast information flows through our online gadgetry, or streams past us while we search on the web, or how often new ‘better’ products replace the old, it’s no wonder why the majority of mailing lists no longer perform the way they once did.  Information, people, places, and events shape our perception, which affect our interest and potential for responding to a direct mail offer.  Consider the news and its impact of technological change; products are services are becoming more and more….temporary.  For this, it is vitally important you take the necessary time to evaluate the mailing list you are about to mail.  It typically pays to upgrade your mailing list order to the 90 Day Hot Line segment of responders.  It’s essential that you pass your in-house list against the National Change of Address.  And when you test mail to gauge a response level before a continuation, be sure you don’t way too long between the two direct mail drops.

Consider an automobile direct mail campaign selling the new 2012 vehicle of choice.  Would you postpone that direct mail campaign for another year and expect the same response?  The answer is no.  New vehicles come out each and every year.  The same goes with electronic technology.  There’s a new cell phone or cell phone activation place every month.  And a cell phone app made available every few minutes.  And just as fast as we experience events within our own personal lives, so does the value of a particular mailing list.

Now think through your product and service as it relates to the ultimate value it brings to the market place.  Then consider how well it’s positioned alongside your competition.  Chances are your direct mail campaign is designed to announce your unique selling proposition.  This is a great reason for investing in direct mail.  But the value your product is bringing to the market is only half the direct mail campaign battle.  The other half is creating a mailing list that will best respond to your offer.  If you could mail to the people who recently read Steve Jobs biography, you’d capture an audience who’s in the “technology and inspiring entrepreneur moment”.  Are these the kind of people you want to talk to?  What about using this reader list to suppress from your campaign?  Would this give you lift in response?  Depending on the offer, the answer is likely yes.

At BB Direct, we help direct mailers consider the possibilities of who they are mailing and especially who they are not.  Maximizing your response requires both a timely offer and an updated and well-crafted mailing list.  If you’d like help with your next mailing list creation, give us a call at 866-501-6273 or visit us at www.bbdirect.com.

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Source One, BB Direct’s Premium Automotive Database, not only delivered over 4 times the quantity of vehicle coverage as compared to the next highest coverage, but nearly 5 times the quantity of verified vehicles.

Additionally, the Premium Automotive Database captures the overwhelming majority of unique records not found on any of the other 3 sources.

In conclusion, the Premium Automotive Database delivers the highest degree of coverage and accuracy, as compared to the other 3 competing auto files.

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Making improvements to your mailing list criteria is easier than you think. Below are the insider recommendations that smart mailers incorporate into all their direct mail campaigns. Follow the directions and logic below and start seeing immediate lift in response rates and bottom line direct mail ROI.

Trade Practice # 1 – Capping Your List Select Ranges

Many first time mailers will intuitively select an age or income range based on what they think is the most targeted for their product or service offering.

As an example, suppose your business is a fine dining establishment and you want to promote a New Year’s Eve dinner celebration. The typical restaurant owner might decide to target local residence and select age 30 +. They chose this age range because, of all the people that come to their restaurant, the vast majority do not fall below age 30.

What about the people on the opposite end of the age range? Will mailing to the people age 85 and older join you till midnight? The answer is, likely not. They are more likely to join friends and family in the comfort of their own home, open a bottle of Champaign, and be in bed by 10:00 pm.  Certainly this is not all people over the age of 85, but you follow the logic. There is a diminishing return for mailing people on the upper end of the age range. Will, a few pieces of mail sent to this audience truly affect the bottom line? The answer is, absolutely. Follow the example below:

Example Criteria Set:

Geography: 4 mile radius from zip code 33914 (chosen in my home town where there is such a restaurant that offers an annual dinner event)

Age 30 Plus = 27,420 records

Age 30 to 85 = 26,609 records

A difference of 811 pieces x $1.43* = $1,159.73 Savings

*Average mail piece + postage

This is true bottom line savings on your overall ROI.

Trade Practice # 2 - Version Your Message and Offer For Best Resonation

Businesses that create a one mail piece for their entire mailing list inadvertently miss out on the benefits of versioning their message to say different things to different segments within their mailing list. Time and time again, campaigns which include “segments” that are distinctly different from one another, respond better with different communication, creative, and offers.

Consider the example in Trade Practice # 1. Likely, there are segments of people who may respond better to one message vs. another. Let’s assume the mail piece will include a photo of a couple or a foursome enjoying dinner together. If you’re mailing to a range of ages from 30 to 85, why not choose 2 or 3 photo versions, such that the younger age mail recipients will be mailed a mail piece with a photo of younger people. The second and third mail piece would include the same offer, but a different photo of two older generations. In theory, the message is much stronger when the mail piece ‘speaks’ directly to the different segments.

You may also consider mailing a completely different offer from one segment to another. Let’s say you’re planning on mailing not only to a new list of prospects, but also to your existing good customers. Your existing good customers are already familiar with your good food and good service, while the acquisition portion of the mailing may not be familiar with the menu and décor. Incorporating changes to the mail piece provides a way to test offers and message response.

Trade Practice # 3 – Always Be Testing Something.

First and foremost, you should always test something. Whether it is the mail piece design, offer, or targeted list, be sure that response measurement is active so that you know how well, or how poor the campaign is performing. If your direct mail campaign doesn’t ultimately provide you with insight into future mailings, you’re wasting an opportunity.

Testing, of course, starts with the inclusion of a response vehicle. How are you measuring response? Is there a coupon code the customer will have to provide when calling in to order? Must they bring in the mail piece to get the discount?

Be sure you are able to measure who responded from the direct mail campaign, from those that have come to your place of business from other advertisement.

The easiest test to incorporate into your direct mail campaign is the list. Mail the same mail piece to two different segments of the population. Then, tally the results from all the responders. Is there a better response with one list segment over the next?

Testing starts with some assumptions. How well do you know your current customers? If you do not know what your current customers look like, you might be well advised to have your in-house list of customers enhanced with some simple demographic variables. This will help you in choosing what target is likely to respond best.

Trade Practice # 4 – Align Your Messaging With Other Mediums So That Your Overall Communication Is Congruent.

Smart mailers are always conscience of integrating their direct mail messaging with other advertising mediums.  There’s a synergy that takes place with integrating the same branding colors, offer, tag line, characters, tone, logo, and story line when marketing. Saying the same thing over and over to the same market, through multiple channels is more powerful that saying different things. Saying different things to the same audience is usually counterproductive.

Who is your primary and secondary audience? Are your other marketing efforts saying the same thing that your direct mail message is saying? Or are you giving your market mixed messages. Use the same logo color scheme, same tag line, and same language. Doing so builds brand and, if done properly, reinforces your brand through consistency, and ultimately provides the best chance for response and customer loyalty.

Trade Practice # 5 – Mail Multiple Times to the Same Audience

It is consistently proven that mailing more than once to the same audience will provide lift to your response. Direct mail isn’t always effective as a “one shot deal”. But, over time, your mail piece is remembered, your brand recognition develops, and your response goes up.

This can be done two ways; one, mailing the exact mail piece multiple times, or two mailing a different piece each time such that you tell a story as you reach your audience. Each time you mail, your audience should be ‘pulsed’ with product / service value, your offer, and your call to action. To be most effective, your mail piece should be similar enough for memory recall.

Trade Practice # 6 – Include Your In-house List of Customers Whenever Possible.

Whenever possible, you should mail your existing customers. Whether you mail them separately, or include them in a direct mail campaign with a purchased list, your existing list of customers is your best list to mail. It has been proven to outperform any acquisition direct mail list, time and time again.

Recalling the recommendation of message versioning, it’s highly recommended you make a different offer to your existing customers, than to a new list you are testing. Again, highlighting new products and services from a trusted provider, or returning rewards with discounts to past customers will almost always outperform an effort to introduce your brand to new people.

Trade Practice # 7 – Consider the Competition When Defining Your Geographic Target Market.

Lastly, depending on the business you’re in; consider the competition when defining your market territory. If you’re market territory is ‘local’ in nature, likely your competition is also. All things being equal, are your customers driving to your location because you are closer to them that the competition? Or do you share the same geographic market territory as your competition? In either case, if you answer YES, you would likely benefit from developing a geographic market strategy when using direct mail.

Smart mailers will make a stronger offer as they mail closer to their competitions geographic location. Others will avoid mailing to areas around the competitors because of they’ve experienced a diminishing direct mail response when mailing closer and closer to their competition. Again, knowing your customers and why they buy from you will give you intelligence on how to find more customers.

If you currently do not maintain a database of existing customers, simply take a survey of your customers. Ask them where they reside, why they buy from you, how they found you, and how you can improve to continue winning their business. Make a list of the zip codes people tell you and look for patterns in where they are coming from. Most businesses find that their best mailing audience to be located within the top 80% of where their current customers reside. Of course, when a new competitor sprouts up, everything changes.

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Assembled disparate data in an effort to better understand a range of human behaviors.

Fair Isaac Co, the company that created and maintains the algorithm for determining an individual’s credit score, says they can predict, among other things, the likelihood that a person will take his or hers prescribed medication.  They call it the Medication Adherence Score and it’s the latest innovation in predictive mailing list data.

This new predictive data is one of several new predictive approaches to identifying cluster groupings from data collected from an individual’s credit bureau.  Experian PLC, also recently introduced their newest innovation with a mailing list product they call the Income Insight Score, which estimates the income of a credit-card applicant.  Legal provisions don’t apply to their Income Insight product as it only produces estimated income based on spending habits found on their credit report.  Credit card issuers cannot use it only to deny and applicant because of this estimation.

Some consumer privacy protection groups have a problem with this form of classification saying that it classifies people with potentially negative labels.  Once labeled as a “risk” candidate, those individuals are less eligible for certain credit related offers.  However, financial businesses must use something to gauge their prospective customers and the use of this form of predictive data ultimately keeps the costs down on “credit worthy” borrowers.

According to the Society of Human Resource Management, about 60% of the employers check credit histories of some or all prospective hires.  They do this with the understanding that there is a pattern of low credit scores and long-term hires.

The U.S. Equal Employment Opportunity Commission claims that credit histories are falsely claim that blacks and Hispanics, on average, have lower credit scores than non-Hispanic whites.  The Commission said that Kaplin Higher Education unit of Washington Post Co., discriminated against black employees and applicants by using credit-based screens that were “not job-related.”

So the use of predictive analytics is used far more often than for financial lending eligibility, however, the accuracy is in question when these predictive models cross racial lines.

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According to the Small Business Association, a small business is defined as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. When you’re considering a direct mail campaign to reach these business owners, direct mail marketers should consider the both the industry they are attempting to reach and the number of employee’s. In some instances, mailers should also consider the sales revenue as well.

As an example,

Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;

Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;

Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;

Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;

General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;

Special Trade Construction: Annual receipts may not exceed $7 million; and

Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.

If you’re looking to reach small businesses, consider BB Direct’s Small Business Masterfile. We have the largest, most accurate database of small businesses in the county.

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If you use Satori Bulk Mailer to process your saturation resident mailing list, you’re likely finding your postage costs to increase. And chances are, as post offices closes continue, you can expect this to occur more and more. The Satori Bulk Mailer software will sort your list based on their most recent file update that Sortori have received. Sortori typically updates every 60 days, while the Postal Service releases their information every 30 days. So, any changes to carrier route boundaries will require re-sorting of the database, hence, throwing some files out of saturation. Any routes not fully saturated will incur a higher postage cost.

So how does this happen? What’s causing the changes, and who do mailers avoid this additional postage cost?

First, this will occur when carrier route boundaries change. Lately, the largest contributor of this type of change has been the closing of certain postal offices. When post offices close, offices nearby must still deliver the mail. To avoid being affected by these changes, you have two options. One would be to use the certificate that came with the Walk-sequence list you ordered and not run it through Satori Bulk Mailer software. The data should already come sorted and should be good for 90 days. The other option is to order the list data from Satori so that the list certificate will be in sync with the data.

If you would like help with your residential list ordering, or any list ordering for that matter, please call us anytime. We’ll be happy to help.

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Targeting car owners via direct mail has just gotten better.  BB Direct introduces its newest database, the Premium Automotive Database, for auto dealer direct mail marketers.  The Premium Automotive Database delivers far more detailed record information and coverage in all 50 states.  Mailers are now able to select and output auto make, model, year built, transfer date, odometer reading, trim data, as well as VIN (Vehicle Identification Number), Blackbook value, and Kelly Bluebook value.

BB Direct’s Premium Automotive Database will help bring “life” back into sluggish automotive direct mail response.  Since the passage of the Shebly Bill back in the year 2000, most auto database compilers have struggled to recreate a verified database of car owners that matched the data accuracy of the Department of Motor Vehicles.  Attempting to model vehicle ownership dilutes the accuracy required by dealerships to attract the right customers.  And using data that comes directly from the State is, well, both difficult to access and illegal.

With this new database, BB Direct is also able to append BB/KBB data as well.  Simply provide either the name and address, or just the list of VIN information and we’ll return your file with the values.

If you’d like to learn more about the Premium Automotive Database, or any other list products, give us a ring at 866-501-6273, or email us at info@bbdirect.com.  We’re looking forward to hearing from you.

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Don’t let the list manager fool you.  Everybody is a donor.  Want a good donor file to mail your fundraising offer, raise money, and develop your own database of “highly targeted donors”?  First you need to better understand who your currently mailing to and why those that response are responding.

Institutional fundraising is very different from political fundraising is very different from cause affinity fundraising is very different from religious affiliation fundraising.  And direct mail, as a whole, is evolving.  Those who responded in the past are not responding the same as they did in the past.  Further, donors are far more aware of what their money buys.  They are considering all the best ways to “invest” there money to make sure it’s put to best use.  In fact, even Warren Buffett, arguably the most successful investor of our time, chose to donate his money to the Bill and Linda Gates Foundation.  He did this because he knows that they’ve done the research on where and how to best invest in philanthropic causes.

We’ve all donated some amount of our hard earned money toward something we believe it.  So we’re on a list.  What how long ago was that?  What was that for?  And, are we donating toward the same or has our “giving” changed toward something else?  Chances are that we “give” to something different, whether it’s a different cause, or same cause but different charity.  People “give” differently in both donation amount and appeal.

So which donor mailing list is right for you?  How can you tell which one is outperform the last one you tested?  Consider the following:

1.      Is the list you’re considering “compiled”.  These typically do not work well for specific causes.  They are really designed for campaigns that are very local in nature.  Compiled lists are just that.  They typically come from multiple sources which dilute the “target-ability” of the list.

2.      Request a usage report.  This will tell you both who used the file, if it was “tested” but not “continued”, and if the list is over mailed.

3.      Consider the recency of the file.  You’ll likely have better success with individuals who’ve donated within the last 24 months.  Pay the extra select change to purge those outside of two years.

4.      Is the list you’re testing in line with your appeal?  Be sure you’re looking at how your appeal is presented and how well it compares with the appeal of the list rental you’re about to mail.

5.      Be sure you’re able to show success with your cause.  Too often mailers neglect to include the success of the donor’s investment.

For help with your next direct mail list rental, call BB Direct to discuss your options.

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