THE TRUTH ABOUT COMPILED LISTS
Many Mailers Misunderstand How And When To Mail Compiled Names By Donn Rappaport Upon hearing rumors of his own death, Mark Twain reportedly quipped,"Reports of my demise are greatly exaggerated." The same
could besaid about compiled lists. In some key respects, the compiled-list business has never beenhealthier, nor has its future ever looked more promising. So whatgives? Why do some mailers swear at compiled lists while
otherswear by them? Why do some mailers vow to never mail a compiledname again?A big part of the confusion is that compiled lists are often misused. There are critical misunderstandings among many mailers about exactly when
-- and how -- to use compiled files instead ofresponse lists. Compiled lists and response lists (subscriber, mail-order customerand donor lists) are not interchangeable.And anyone who uses them as if they were is destined to
failure andfrustration. Each type of list has a set of unique characteristicsthat enables it to achieve specific and distinct objectives. In terms of response rates, compiled lists rarely can compete withresponse files. If
the highest possible response is what you'relooking for, you should search out lists of proven direct-mailresponders.But response is not necessarily always king. A good response iscertainly important to most mailers. But smart
mailers and sharplist brokers know that, for many mailers, response is only part ofthe picture.For example, a mailer who needs to cover an entire market, say everypharmacy in the country or every family living in a specific
Chicagosuburb, has a better chance of achieving that goal with compiledlists.Also, a mailer who needs special selectivity to target a well-defined market, for instance doctors who specialize in internalmedicine, manufacturers with
20 or more employees, or families with householdincomes of $50,000 who live within 10 miles of one of 550 jewelry stores in a particular chain are also likely to do better with a compiled list than a response list.And that's not
all. 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.What about response? No one wants to sacrifice response. But whenyou
take into account the lower costs of compiled lists and theirselectivity and ability to cover a market, you begin to see why,for certain mailers, in certain situations, compiled lists may proveto be more productive overall.Another
problem, often mentioned with compiled lists, is delivery.To most mailers, nixies are like a red flag to a bull. The typicalmailer who sees 10 to 20 percent, or more, of his cherishedmail pieces returned as non-deliverables, loses
his mind. The fact is,compiled lists are not nearly as accurate as response lists. Census studies have shown that more than 10 percent of the U.S.population moves each year. An even higher percentage changes jobseach year.
And since most compiled lists are updated annually orsemi-annually, at any given time, five to 15 percent of thenames and addresses will be incorrect.That's difficult for mailers to accept. But the truth is, it reallydoesn't
matter. All that does matter is the bottom line. In direct mail, that usually translates into response rates, or better yet, cost per order or return on investment.Mailing to a given list will either pay off or it won't. A
compiledlist may very well pay off, even if 20 percent or more of therecords are not deliverable. The trick, as my first boss used tosay, is to keep your eye on the donut, not on the hole.In summary, mailers who are successfully
mailing to compiled listsmay or may not be able to use response lists effectively. But,almost every mailer of response lists can reap some importantbenefits by augmenting their mailings with carefully selected compiled
lists.Browser Fixed
