Knowing exactly who to target is a critical element for success in any direct marketing campaign. It can be difficult or impossible to produce effective campaigns and generate desired response without a qualitative understanding of the consumers you’re marketing to. That’s why, for most mid-sized and mature companies, a combination of predictive analytics models based on customer behavior should drive the direct marketing list selection for your campaign.
Improving your Response and Conversion Starts with Better Targeting
Depending on the size and focus of your organization, you might have many methods for refining your target audience. Predictive analytics is at the core of good targeting. Predictive models can include response models, conversion models, net present value models, Life Time Value (LTV) models and many other advanced approaches. The type and complexity of direct mail lists your organization needs is ultimately based on where your company is in the corporate lifecycle, as well as how many customers and prospects you currently have and how they were sourced. Models are built through complex statistical analysis of past and current customers as well as responding and converting prospects. It’s through understanding the factors driving response and conversion that we can better target prospects most likely to respond and convert.
Some models cannot be developed accurately without enough quality input data, and others are not realistic approaches for smaller and mid-sized companies due to cost and complexity.
Regardless of your size or focus, it’s been my experience that many marketers can benefit from initial development of a targeting model, or from improving existing targeting models.
Bolstering Direct Marketing Lists with Advanced Analytics
Many times we engage in customer analytics to understand who our clients’ best customers look like from a data asset point of view. From there we create models and select more prospects that meet the same criteria. By intersecting that data with responsive and converting customer models, we can effectively target prospects with a high probability of becoming customers. This optimizes direct mail efforts, reduces our clients’ risk, and strengthens the value and ROI of direct marketing lists.
Choosing the List That’s Right for Your Campaigns
IWCO Direct most commonly works with compiled, modeled data sourced from strategic partners, such as analytics firms, list brokers and list owners. Selecting prospects based on a client’s best customers has proven to be a solid approach to targeting and list selection.
Initial exploration of our clients’ goals and objectives helps us understand who the client has targeted in the past, who they are targeting currently, and who they would like to consider targeting in the future. There are many data sources that can be utilized in addition to modeled data. There are several types of direct marketing lists that are for lease on a one time or multi-rental level, and others that are sourced from internal resources. Here are a few examples:
- Magazine publication subscriber lists;
- Company respondent and customer files;
- Compiled data consisting of demographic and other criteria;
- Credit level data extracted from credit sources such as Transunion;
- Transactional data extracted from partners or internal resources;
- Business data, such as that offered by Dunn and Bradstreet.
Modeled lists are typically built using compiled data and not subscription data or publication data. Many times these sources are overlooked but should be tested. The list universe is vast and selecting the right list approach is the key to success. At IWCO Direct we help clients determine what type of list to use as well as the role of models and analytics in targeting. Many times multiple models and multiple lists are tested to determine appropriate combinations for the final campaign. Our internal and external resources use insights gathered from data mining to identify ideal prospects and tactics for customer acquisition. From there, lists are selected that best address client goals, and campaigns are deployed.
The IWCO Direct Difference
In addition to our in-house strategy experts, IWCO Direct’s list resources encompass list assets from multiple strategic partners. We have access to multiple credit assets such as credit bureau data and other custom list tools to help us identify potential prospects for our clients.
If you’re not sure your organization is maximizing your targeting potential, or if you feel that your target universe is not well defined, or if you just want to explore options that you may not have considered before, we encourage you to reach out and discover what IWCO Direct’s powerful direct marketing list expertise and resources can do for your marketing.
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