Putting Lists to the Test[/title]

Despite its renewed attraction, direct mail is a very expensive medium and, therefore, must be used selectively if it is to be cost-effective. The costs involved must be considered before mailing lists are given serious attention. At DDM Advertising, for instance, the potential client is asked to meet with the account director and list broking manager to decide jointly whether the arithmetic makes the business suitable for direct mail. If the product being offered requires an impossibly high response rate, direct mail is not recommended. In addition to the response rate, the client's potential market and pricing policy are considered to ensure that the offer is more tempting than what is already available. After cost-effectiveness has been measured, the lists are ready to be tested. At least 3 lists should be tested, and it should always be emphasized that no list will work as well as the company's own. Existing customers would buy more readily than complete strangers. It is also important to eliminate any duplicated names; the merge urge process is now quite sophisticated. After the mailing occurs, further tests on a small section of the list can be made to find ways to improve response for the next mailing.

Full text: Marketing, Jan 27, 1983Internet Marketing Tools

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