This week's question: With the list universe continuing to shrink, how much more detailed and precise are selections likely to become?
Our current panel features: Tracy Egan of Media Horizons Inc.;Jeremy Johnson of Specialists Marketing Services; Wendy McLaughlin of DSA Direct; Al Schonwald of Chilcutt Direct Marketing; Paul Theriot of Alesco Data Group and Kerry Tranfa of Infocus Marketing. (Would you like to be considered to be a member of our roundtable? Contact Larry Riggs at [email protected].)
Tracy Egan, media director, Media Horizons Inc:
This is an issue that has been ongoing in our industry for some time. We have found a way around it through various types of list models, pre- and post-merge models, cooperative databases, endorsements, partnerships and negotiations.
Goals have been adjusted based on the universe available, but in many times the allowable has not. Selections will continue to be refined to maximize profitability in the mail, and the burden will be on the brokerage and management community to continue to search for viable and creative solutions.
Jeremy Johnson, vice president of brokerage at Specialists Marketing Services Inc.:
For many lists, selections are already very detailed. Enhanced selects are being offered on a number of larger databases which allows marketers to use these types of lists where they were not able to a number of years ago. There are some companies which are overlaying actual transactional data to their databases in conjunction with self-reported (survey, warranty cards, etc.) data. This enhancement on “steroids” allows the marketer to reach someone who not only shows an interest in a particular field, but has also made purchases; a great indicator that person is more apt to respond.
Further, one must also be aware some companies are looking to maintain their universes, but may be looking to do so through cheaper and less desirable sources. For instance, consumer magazine publishers have had to rely on more agent and partner subscribers in these lean times. These names typically do not work well for direct mail offers. Most of these lists, however, have detailed source selections which allow the marketer to eliminate those poorer sources.
Wendy McLaughlin, vice president, list brokerage, DSA Direct:
Our clients continue to mail and have been sharpening their select criteria and getting great pricing deals. Results have been holding up well and while they are not seeking to open up universes by broadening selects, they do continue to test files with smart segment selects.
Consumers seem to be looking for unique, quality products at reasonable prices. So our smaller mailers are actually seeing significant file growth. By focusing on mailing the house file strong offers, and mailing deeper into the house with smart promotions and modeling, we're seeing great results. Strong, growing lists, albeit somewhat smaller, are still out there.
Al Schonwald, vice president, Chilcutt Direct Marketing:
The trend will continue for mailers to increasingly use modeling with databases to select the best performing names. As the quality of response lists decreases there will be more segmentation, use of zip selects and models on top of models. There will also be more effort to get Internet-generated data to work for postal mailers.
Paul Theriot, president, Alesco Data Group:
As response list universes have shrunk, we’ve seen some marketers look to compiled data and analytics, often in a private database environment, to help fill the void. In more and more instances we’re seeing the merger of compiled data, response data and multichannel contact information.
There is also an ever increasing availability of Internet-derived data, be it e-commerce, social media or general Web activity. Many of these data sets are being coupled with site-based interest selections (i.e. if you’ve spent time on an aviation Web site you probably have an interest in aviation) along with being matched back to compiled databases to append demographic information to each record.
The net result of all of this compiling, mixing and matching is a significant increase in the availability of selection criteria, with more to come. But this has also been accompanied by a greater variance in the accuracy of the selections. So it’s a mixed bag in terms of quality and precision.
However, accurate selection criteria generate higher response rates, which drive positive return on investment, which results in more continuations. Over time the wheat (accurate data) gets separated from the chaff (inaccurate data).
Kerry Tranfa, senior consultant, Infocus Marketing:
I don’t see the list universe shrinking – in fact, I only see opportunity. With more associations opening up to e-mails on top of the postal mailings, customers are able to rely on multichannel marketing and meet their budget. The association list world is growing and we have the ability to help our customers drill down to as specific of an audience as they want – or keep their audience wide open.
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