Getting Started

It’s a big step for marketers to open up their packages to the many offers vying to be inside.

Usually a DMer puts its list up for rental and based on how well that goes, it decides whether to try a package insert program (PIP).

Of course, insert management is a different animal than list management. And it has different rules.

When a list goes on the market, the first step is the simple creation of a data card, which is then circulated around the direct marketing community. In the insert game, however, the first step is to preprint the inserts. Once an approval is received from the owner (a cataloger, for example), the inserter ships the material. So the inserter incurs an immediate expense.

Therefore it’s important that the owner doesn’t impulsively put a package insert program on the market, but answers all the necessary questions first. A true commitment must be made for success on everyone’s part.

Here are some questions often asked by marketers that are thinking about testing a PIP:

How much time do I need to start a program?

Timing depends on each individual owner. First, though, the following questions must be answered and procedures adhered to:

• Is the size and weight of each piece acceptable?

• How many inserts would be accepted based on the owner’s postal package requirements?

• Will the pieces be loose or collated in-house or outside?

• Establish the design and typeface of the outer envelope, which can carry advertising.

• Determine the required date for delivery of insert pieces.

• Plan for insert shipment storage.

• Decide who will sign and accept responsibility for the pieces at your shop.

• Establish guidelines for the types of inserts that will be acceptable.

• Select a list manager to put all of the above into practice.

Is it realistic to start a program immediately?

The short answer is yes. Once a decision is made and all the details have been worked out, it’s possible to start right away. In the first month you may wish to limit the insertions to four or less to make sure you can handle all the aspects of the program. Almost any month is a good one to start except for July and December — they’re vacation months, and a new business endeavor can’t really be reliably tested at those times.

What should I look for in participating companies? Which ones should I consider or not consider?

Obviously, you do not want to accept anything too competitive with your own product.

One can briefly categorize the offers and determine which would be appropriate for your company. These include apparel, beauty, checks, children’s offers, collectibles, credit cards, electronics, health-related items, home products, insurance, general merchandise, music, publishing, stationery and vitamins.

Remember, for every mailer’s offer you put in your package, there is an implied endorsement of product or service. You are, in effect, offering this as a service to your customer. Under no circumstances should approval be given to an insert until you have carefully reviewed the contents and claims for their potential effect on your audience.

It’s always advisable to have a good mix of offers as the program grows. Diversification helps determine the offers that are most effective and helps in the future marketing of your PIP.

How many pieces do I take at a time?

It depends on the size and weight of your own packages as well as those pieces coming into your packages and the postal guidelines. Six to eight inserts is usually standard, with an average size of 5 inches by 8 inches.

How do I price my program?

Make a comparison to other programs on the market — that is, catalog vs. catalog, unit of sale, size — and then decide based on your research. Always be prepared to negotiate while keeping an eye on your own profits, taking into account the inserter’s cost per order, weight and commitment to the number of inserts it will put into the program.

You’re coming out of the gate with a price, so always remember to be fair. Your PIP manager will be your best adviser on this. The market is relatively small, and folks look for all the signs that indicate whether or not a program is successful. Given that, changing the price does not bode well.

How long will it take to fill my program to capacity?

It depends on the individual program. If you state that eight slots is your full capacity and the total weight of those pieces is under your postal requirement, you can increase the capacity to more than eight. But review this status monthly, taking into account shifting weight factors.

How do I best enlist a manager?

You might consider interviewing at least three managers with insert media experience. You need to hear about their successes and failures, their reporting systems and how they’ll work with you and your warehouse.

You may want to review their clearance procedures as well as warehouse inventory control, status reporting, billing and collection. And for certain, you will want to know their track record for the growth of other programs they manage.

Margaret Raven Ginns ([email protected]) is senior vice president of consumer marketing at List Process Management, Sarasota, FL.

DECISIONS, DECISIONS…

Marketers considering a PIP should give some thought to the following questions:

• How much time is needed for start-up?
• Is it realistic to begin a program immediately?
• What companies are participating?
• How many pieces should be taken at a time?
• How should the program be priced?
• How long will it take to fill the program to capacity?
• How do I best enlist a manager?