Split It Up
Within the confines of the implied social contract between sender and receiver, consumers want improved targeting efficiency and lower mail volume, that is clear. But correct list segmentation and waste reduction can have phenomenal exponential effects on returns.
Mailing list segmentation is simply the practice of breaking one big list up into smaller pieces based on defined criteria.
Over our UK Startups Database our customers segment by SIC code, geography, director attributes, time, keyword, size and so on. Each segment can be mixed and matched with others to produce another mailing list.
Tighten your targeting, reduce your Cost Per Response
If your send sample contains 1000 units at a cost of £0.75 each, then a 1% response (i.e.. 10) will cost you £75 per sale. Take out 20% of the initial send, and the CPR will also drop 20% to £60 and your response rate is 1.25%. This is because the 20% you ditched were never going to respond anyway.
List segmentation saves money! (When you get it right).
Notwithstanding the overhead of running a campaign (staff, design etc) the tightest levels of segmentation will always bring the best CPR.
Send the right thing, to the right people, at the right time.
..everyone who ever wrote about marketing
The giant shoulders we stand upon:
- Milne, G. R., & Gordon, M. E. (1993). Direct Mail Privacy-Efficiency Trade-offs within an Implied Social Contract Framework. Journal of Public Policy & Marketing, 12(2), 206-215