The Different Types of Direct Mail Lists

The two types of data sources available to direct mail marketers are compiled lists and response lists.

Each type has different characteristics that enable it to achieve specific objectives.

A compiled list consists of data gathered from third-party public sources such as government records, directories, and newspapers. They usually contain a considerable amount of demographic data. Response lists are composed of the names and addresses of individuals who have responded to a direct mail offer. Magazine subscribers, mail-order buyers, and individuals requesting free literature are examples of response-generated inclusions.

A compiled list is good to use when your objective is brand awareness, publicity, or general information. It is also appropriate to use a compiled list when you need to reach an entire market; for example, every homeowner living in a certain Nashville suburb. Compiled lists work well when targeting a well-defined market, too, such as homeowners with household incomes over $40,000 who live within 15 miles of your office or store. Often, a response list is not big enough for an adequate mailing when your geographic market is limited, but a compiled list can be.

Response-generated lists actually consist of another marketer's customer names, which allows you to further define your target audience by interests or buying habits. The more refined list your list is, you the more targeted you can make your mailing message.

To give an example, a local homeowner who recently subscribed to a home decorating magazine is a better target for custom window treatments than an apartment dweller who subscribes to a sports magazine. A homeowner who has bought art in the past six months is an even better target. Response lists can be very specific.

Price Your Options

Most mailing lists are rented for one-time use in return for a fee. The fee is usually determined on an amount per thousand records. However, it is possible to rent lists for multiple uses and receive a discount. For example, a list broker might double the base price but allow you to use the list three times.

Most list companies have minimums (usually 1,000 to 5,000 names), so ask up front. Also, the more filters you use, the more expensive the list. Additional costs are incurred as you add selections, such as income, age, length of residence, new movers, recent purchases, etc.

"Compiled lists are generally less expensive than response lists, costing between $30 and $60 per thousand versus $80 to $100 per thousand for response lists," said McCorry.

Track Results

Every mailing is a an opportunity to learn more. By tracking results, you’ll be better informed and prepared to make future marketing decisions. Tracking results should include who responded, which respondents purchased, and the value of their purchase.

You can track results on a simple spreadsheet and calculate your return on investment accurately. Your return should be significant if you did all the groundwork and selected the right list.