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For example, if I'm promoting a newsletter on the subject of recruiting, I probably will have to live without subscribers to a hypothetical "Recruiting" magazine (unless I can work out a swap, which is always worth a phone call). But a compiled list of "corporate recruiters" would rate an "A."
A list of human resources managers might also rate an "A," but a list of human resource directors or VPs wouldn't. Why? Because human resource managers often do the actual recruiting work. HR directors and vice presidents are somewhat removed from the day-to-day recruiting process (been there, done that) and probably wouldn't think they need hands-on advice on recruiting.
Watch Out for Fuzzy Logic
OK, you might say, but wouldn't HR directors want their people to know as much as possible about recruiting and pass the mailing piece along to them? Or, might not some of these HR VPs make hiring decisions? Sure, some might. But that's not a primary and normally anticipated behavior for this group. Be careful of that kind of fuzzy logic, tempting as it can be. It will have you selecting marginal lists, which will tend to drag down your aggregate response.. If the promotion or offer isn't directly related to the person receiving it, your odds of a sale drop dramatically.
The numbers are assigned according to the total size of the list. Relative to the lists I have to choose from, the largest lists rate a "1," next largest a "2," etc. Smaller lists (3) can always be added to a continuation or rollout later at low incremental cost, rather than claiming a spot in the initial test. You don't want to mail too many small lists, since even if you get a good hit on some of them, there won't be many names to go back to.
I then construct my test list A-1s first, A-2s, B-1s, B-2s, and so on. If you find yourself getting down into "C" lists rather quickly, you may have a list problem, or need to look further.
Of List Brokers and List Managers
List brokers have access to all or almost all lists available for rent. They consult with you, determine your needs, and make recommendations. Their fee is paid by the list owners in the form of a commission, roughly 20%. If they sub-rent from "exclusive" list representatives, they split some of that. Whatever the case, the list broker represents you and your interests.
List managers handle a wide variety of lists. That is, they market them to the list rental marketplace, either directly to you, or through a broker. They represent the list owner in maximizing the revenue from his or her list.
If you're a relatively small mailer, say 200,000 pieces a year or less, find one broker and give him or her all your business so the broker has an opportunity to learn more about your business and the lists that serve your needs. He or she will also have a stake in your success. By all means, talk to list managers, too. You can learn a lot about lists that way. And if you can develop a good relationship with the list manager, great! Just don't forget that the list manager has a vested interest in the lists he or she represents. That may work well for you, if the management is large enough to encompass your needs.
It is sometimes difficult to find a broker who will give his or her full time and attention to a person needing only 10,000 names for a test. But they do exist, and they hope your business with them will grow as you grow. When you find one of these, hold on. One thing a broker cannot do is tell you a list's rate of response for another mailer. They can, however, tell you the list usage; who rented the list and, more important, who came back for continuations (2nd or 3rd test mailings to larger quantities of names) and rollouts (large-volume campaigns).
List Formats
Lists are provided in several forms: Cheshire labels, pressure-sensitive labels, and magnetic tape, diskette or CD-ROM for direct (ink jet) addressing.
Cheshire labels telegraph "advertising mail" to recipients and are the least desirable. By far the best addressing strategy is to use magnetic tape and direct-address --ink jet or laser -- on the order form (to show through a window envelope), on the top of the letter (ditto), or on the outside of a closed face envelope. (One direct marketing agency I know refuses to take a client who insists on using Cheshire labels.) In some mail formats, you can have computer personalization in more than one place
.Some additional points to remember when renting and using lists:
* Be sure all lists are coded by test panel (or order forms are coded if the record is not on the return piece) so you can record results by list
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