Economic Impact on List Rental Supply vs. Web 2.0 Insights
In reality, the number of postal names is fairly consistent with the population, while the number of opt-in e-mail files continues to grow. However, uncertainty remains as to whether or not the real number of new response lists is growing—but how important is that really?
The increased diversity of data, selectivity, program options and list-specific metrics are enabling marketers to do more than ever before. New lists come and go, many lists become hybrids as a result of enhanced data processing, and other traditional marketing programs are expanding online (e.g., webserts).
Here’s the takeaway: Opportunities for direct marketers must be evaluated in a broader context. The counting of new lists is meaningless without an understanding of list quality, segmentation, selectivity and options for multichannel use. The dark ages have been replaced by Web 2.0, which supports an online knowledge base that is available to direct marketers 24/7. Provided below are three examples of list-specific attributes that are available online for direct marketers to consider before testing new files:
• List popularity index (LPI): a mailing list's popularity rating on a range from 0 to 100, with 100 being the highest rating. The LPI scores are calculated using an algorithm that analyzes recency and frequency of more than 100,000 outside list recommendations made in the trailing 12 months of the scoring date.
• Recency, frequency, monetary value (RFM): Try running a Google search on “Swiss Colony Mailing List” or click here. Notice the RFM data including a monthly hotline, new-to-file buyers, multibuyers, average order amount ($75) and other targeted selects.
• Highly correlated lists (HCL): If you see reputable titles listed as "highly correlated," you know the list you’re considering is in good company. Notice the mailing lists also recommended by those who recommended the Swiss Colony Mailing List: Harry and David—Mail Order Buyers Masterfile, Jackson & Perkins—Catalog Buyers Masterfile, Wolferman’s, Lillian Vernon Mail Order Buyers, Godiva Chocolatier, The Lighter Side, Abbey Press Mail Order Buyers, Figis Gifts in Good Taste Buyers, Fairytale Brownies, and Trophy Nut Company Food and Gifts.
Focus on retaining the empirical knowledge of a seasoned list broker, and take a closer look at the performance indicators for each new list on your testing matrix.
Chris DeMartine is the director of business development at NextMark, a Hanover, N.H.-based marketing mailing list information and technology company. Reach Chris at (603) 643-1307 x114 or via e-mail at email@example.com. To be notified when new lists are added to the NextMark database, sign up for the firm's e-newsletter.