List Roundtable: How can direct marketers boost their list rental revenue?
John Papalia, president/CEO, Statlistics
The biggest key to list rental revenue growth is managing all your opportunities. Are you developing out-of-market business with tiered pricing strategies? Are you using all available database opportunities, both public and private? Are you promoting your file … using a comprehensive marketing plan specifically tailored to your list(s) and market? Is your file represented at the major industry trade shows, and are meetings being booked at these shows to obtain new business?
Further analysis of your file would include selections. Are there additional selects that could be added through data enhancements? For example, small businesses are a growing area. Do you offer company size? In addition, are you offering full source selections, and are your expires available at a lower rate?
If you’re compiling e-mail addresses, consider releasing them for rental as well. Besides the difference in base pricing points, you’ll also see a faster return on continuation orders, as the response read is a far shorter window than with postal files.
My additional recommendations include annual base pricing analysis to make sure you’re priced competitively with other major files in your category. Also, work with your list manager to make sure the rental file is updated regularly, and that it includes change of address records.
Lastly, partner with your list manager. Help them learn all the unique characteristics of your file, be open to the negotiating necessary in today’s economic environment, and work with them to ensure they’re actively promoting and marketing your file.
Karen Mayhew, executive vice president, consumer management, Direct Media
Start with the basics. Do a competitive price analysis annually. Can you increase the base price of your list? What about selection or run charges? Have you considered raising your minimum order requirement? On a large file these charges really add up to a meaningful amount of revenue.