You can start a direct marketing campaign to reach your current customer database, or you can purchase a direct mailing list from a list broker or list manager to connect with new potential customers. If you are considering purchasing a direct mailing list, there are several factors to consider.
Decide on the contact method
The first step is deciding how you want to reach your potential customers. Do you want to run a direct email campaign, do you want to communicate by phone, or do you want to try an email campaign? Each method of contact has its own considerations.
When deciding on a contact method, it is extremely important to make sure you are aware of the various rules and regulations that govern each direct marketing method. If you plan to purchase a telemarketing list, take the time to research the Do Not Call regulations. If you decide that mass email is the way to go, make sure you are aware of the CAN-SPAM requirements.
Not learning about the rules governing the marketing method you might use could cost you.
Know your target market
The next thing you need to do is determine which group would be most interested in your products and services. This is called a target market, and your direct mailing list must be tailored specifically to reach them. Are you promoting your products to consumers or businesses? If you don’t know what your target market is, try looking at your current customer base and using their characteristics as a model for your target market.
How often are you going to get close?
Is your direct marketing campaign going to be ongoing or is it going to be over and done with? This factor will likely be determined by the purpose of the campaign. Are you reaching out to new potential customers to try to raise awareness or are you trying to promote a limited-time offer? Repetition is important in any marketing campaign, the more you can get your message across, the better.
Direct mailing lists allow single or multiple uses. Single-use mailing lists are usually cheaper than multi-use lists, as you only use them once. With multi-use lists, you pay the full fee for the first use and a reduced fee for each subsequent use.
You just need to make sure you are clear about the usage guidelines for the mailing list you are purchasing. If you use a mailing list multiple times when it is a one-time list, you will be charged a hefty fine.
How many contacts?
The size of the mailing list you buy can be determined by a couple of factors. First is the marketing method you decide to use.
Email lists have a higher success rate if they are sent to a large number of contacts. The average open rate for an email campaign is 18-20%, with the average click-through rate after it is opened 3-4% (rates vary by subject line and relevance). This means that out of 1,000 emails sent, approximately 200 will be opened and of those, 8 will respond to the call to action. A larger email list will ensure that your message is open and reactive.
The size of the telemarketing list should be determined by the number of callers. If you plan to outsource to a call center with multiple callers, then the telemarketing list should reflect that. A telemarketer can make between 300 and 500 calls in an eight-hour shift. If you have 4 telemarketers calling, you can review approximately 8,000 names in a week. Conversely, if you only have one person in the house making calls when you have time, you might be able to review only 100-150 names in a week.
The number of contacts on a mailing list will mainly depend on the budget. With direct mail campaigns, the list is often the cheapest part, especially if you have a lot of contacts. Printing and mailing can be quite expensive if your mailing list is large.
The other factors that can determine the size of your list are the number of contacts that match your target market and budget.
The more defined your target market is, the better the mailing list will perform. The key is to be able to correctly delineate your target market. If your target market is too broad, the mailing list will be too large. However, if you narrow down the target market too specifically, you will end up with a mailing list that is too small to market. You have to find the happy middle ground.
When do you need the list?
It is also important to know that mailing lists have a shelf life. People move, get married, change staff, new businesses open, others close, etc. Whether it’s a business list or a consumer list, there are myriad influences that can affect the data on your purchased mailing list. If you don’t plan on using the mailing list right away, don’t request it until you’re ready to use it.
What is your budget
Nobody likes to answer this question. In a perfect world, you would buy as many names as you can to get the optimal result from your direct marketing campaign. Unfortunately, we all have to budget. Paying for printing and postage or paying the call center or email design and implementation software or services consumes a large chunk of the marketing budget, leaving little for the mailing list. Fortunately, as mentioned above, the mailing list is usually the cheapest part of a direct marketing campaign.
With that being said, you don’t want to go cheap on your mailing list either. The more specific you want your mailing list to be, the more effective it will be, and as a result, it will cost slightly more than a generic, undirected mailing list. But it will be far more effective than a generic, undirected mailing list.
As the old saying goes, anything that can be bought for a very low price is probably not very good. You can probably buy a cheap mailing list with tens of thousands of names, which is inaccurate, unsupported, and untargeted and probably won’t work. A targeted, compliant, and well-sourced marketing list won’t come cheap. You get what you pay for and if it sounds too good to be true it probably is.
The answers to the previous six points are the foundation of your direct marketing campaign. Whether you are searching your direct marketing lists directly or using a list broker, you will need to know the answers to these points. It’s always good to really think about the different aspects of a direct marketing campaign. If you’re not sure what your answers might be, find an experienced listing broker. They can help guide you through the list buying process.