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Tag Archives: Direct Mail Marketing

Quality Over Quantity, The Importance of List Management

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dans Database Marketing, Direct Mail Marketing, Direct Response Marketing, Marketing Strategy

Quite a while ago I read an article that described the list woes of a mail-order gourmet brownie company. They ran into some issues trying to effectively manage and grow their mail catalogue distribution lists.  Because the majority of their business, or all of it, depended on responses to their catalogues, the company decided to expand their customer mailing list by acquiring multiple purchased lists from an agency.  The rapid growth of their mailing list caused them to increase catalogue production and, as a consequence, increase costs associated with their direct marketing campaign.  The tough part for this company, though, was that they didn’t see a correlating increase in response rates.  After investing all this money, the responses were not sufficient enough to recuperate the growing cost of catalogue production, let alone producing any bump up in profit.

So, what went wrong?  A lot of people assume that if you increase your marketing campaign’s reach, the ratio of responses should grow at the same rate.  Statistically, this theory might be true if you’re talking about something like playing the lottery – the more you play, the more chances you have to win.  Unfortunately, this rule doesn’t apply in direct marketing.  Success isn’t necessarily dependent on quantity, but rather on quality of your marketing message and the relevancy of it for the people that receive the message.

Proper list management is an incredibly important part of a successful and effective direct marketing campaign.  The effort of reviewing and refining your mailing lists should be constant and should hold just as much importance as things like defining your marketing message or balancing your budget. Read More »