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Everyone is trying to save money when it comes to list prospecting. As with any purchase, you want to do your research. Consider the base list price, the type of list and typical response rate, and watch out for hidden costs.
While price often is a defining factor for many buyers, quality should play into your decision. And here is where your research pays off. Just like with car shopping, you can buy the least expensive list, but you will probably get the least desired results. Don’t buy on price alone, says Steve Tamke, senior vice president at marketing firm Mokrynskidirect in Hackensack, N.J. You need to consider the type of list, the features included in the price and the response, he cautions.
The type of list matters just as much as from where the list comes. “I know that complied lists were the last selected. They are cheaper, but the response is usually lower,” says Michael Keller, director of marketing for MarketingWorks, a full-service educational strategy, marketing, sales and research firm in Yardley, Pa. Tamke adds that while compiled lists have not been high responders, the segmentation technology is improving, and using custom models may make these lists more cost efficient.
Another trend to consider: list exchanges. While you may not incur the cost of renting names in an exchange, keep in mind that these arrangements often are made with mailers that have a close affinity with your offer or customer demographics, so you may be trading for names that might eventually have come your way. Also, if you are exchanging names with a company that might otherwise have rented your names, “you may well have foregone list rental income,” says Tamke.
When it comes to price, haggle. There is more negotiating than before, and nearly everything is up for grabs. Some areas to negotiate:
* Net name arrangements: Never pay for more than you actually mail. You’ll have to prove you already had those names in your database, but it’s worth the effort. In that same arena, many list owners are offering an off-the-top discount for duplicates. Buyers take a guess at how many names they already have and negotiate a lower price. Also, if your list or the list you are purchasing are part of a co-op database, don’t add co-op names into the merge/purge, and ask to have your names suppressed as well.
While price often is a defining factor for many buyers, quality should play into your decision. And here is where your research pays off. Just like with car shopping, you can buy the least expensive list, but you will probably get the least desired results. Don’t buy on price alone, says Steve Tamke, senior vice president at marketing firm Mokrynskidirect in Hackensack, N.J. You need to consider the type of list, the features included in the price and the response, he cautions.
The type of list matters just as much as from where the list comes. “I know that complied lists were the last selected. They are cheaper, but the response is usually lower,” says Michael Keller, director of marketing for MarketingWorks, a full-service educational strategy, marketing, sales and research firm in Yardley, Pa. Tamke adds that while compiled lists have not been high responders, the segmentation technology is improving, and using custom models may make these lists more cost efficient.
Another trend to consider: list exchanges. While you may not incur the cost of renting names in an exchange, keep in mind that these arrangements often are made with mailers that have a close affinity with your offer or customer demographics, so you may be trading for names that might eventually have come your way. Also, if you are exchanging names with a company that might otherwise have rented your names, “you may well have foregone list rental income,” says Tamke.
When it comes to price, haggle. There is more negotiating than before, and nearly everything is up for grabs. Some areas to negotiate:
* Net name arrangements: Never pay for more than you actually mail. You’ll have to prove you already had those names in your database, but it’s worth the effort. In that same arena, many list owners are offering an off-the-top discount for duplicates. Buyers take a guess at how many names they already have and negotiate a lower price. Also, if your list or the list you are purchasing are part of a co-op database, don’t add co-op names into the merge/purge, and ask to have your names suppressed as well.
Companies Mentioned:
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Secrets of Direct Marketing Testing
Strategic Catalog Marketing