Many an experienced direct marketer would say a response list of buyers or subscribers to a specific offer will outperform a compiled list any day of the week. However, it is imperative to not become short-sighted and completely disregard using compiled lists. They can serve an important purpose for almost all marketers.
Compiled Lists Defined
Compiled lists are generated by list compilers and data aggregators who collect data from a variety of sources, including but not limited to newspapers, telephone and business directories, public records, warranty cards, and trade show rosters. An array of self-reported data from lifestyle questionnaires, online surveys/registrations, and even transactional databases may be brought into the file to identify specific interests or behavioral attributes. List hygiene, NCOA, SAG, DNC, and DMA suppression are performed on a cyclical basis, while updates that add new records and remove old names also occur at specified frequencies (monthly or quarterly in most cases).
Why Use Compiled Lists
- Larger universes: Such volume is ideally suited to direct marketers with a limited geography or demographic target. Many fundraisers and regional publishers fall into this category as they are often unable to meet minimum quantities on response files and find that compiled lists fulfill their needs quite nicely.
- Depth of selects: Many compiled lists offer up to 80% more selection options than a typical response file. The abundant options allow for selecting prospects with many similar attributes to your customer file. Although each select will add to your CPM, ask your list provider for a special test rate. Most will honor such requests.
- Supplemental names: Lower cost and quick order turnaround (usually same day) make compiled files an attractive option when another list declines your offer as “too competitive” or you discover that you are short on records going into merge/purge.
- Competitive usage not an issue: Mail pieces/scripts are held to ethical standards and DMA guidelines, but compiled lists are much easier to approve.
- Accommodating to models: Prospect, zip and other models require volume that will yield a statistically measurable quantity upon testing and favorable roll-out potential which will justify the expense of developing the model in the first place. Compiled list owners are more likely to approve names for usage in these situations, as well as negotiate net name arrangements that afford the mailer with a CPM closer to breakeven.
- Alternative source of names: When list fatigue hits your top-tier lists and others require “dead heading” from the mail plan, compiled lists offer an alternative that can sustain life in your campaign.
Keep a few simple things in mind. First, know your customer profile and be sure to mail records from this segment first. It is tempting to deviate, especially if you have a “gut” feel, but save such assumptions for an A/B split or re-test. Next, don’t forget to request list usage. Tests and continuations from the last six to 12 months can identify marketers with synergies and offers similar to yours indicating a good reason to test the list. Moreover, be sure to use MOB, donor, and magazine subscriber selects for relevant offers. Inclusion of these selects will assist in further qualifying the leads. Finally, remember this direct mail mantra, “Don’t be afraid to test, test, and retest.” Sometimes we discover that what would not work in the past now performs beautifully.
Sandy Ostrander is manager of account management for ListSolutions Inc.
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