Five Direct-Mail Terms to Know

Direct-mail marketing is alive and well. In the interest of helping you understand how it can work for you, here are five terms from this business that help make clear what makes this marketing option work.

1. Compiled list .Names and addresses taken from directories, newspapers, public records. People who have something in common. Compiled lists are usually the least useful or responsive for direct marketing. Response lists are better.
2. Control Group .Every database promotion should include a control group of customers who are not exposed to the promotion. The success of the promotion is measured by the difference in response of the promoted group compared to the control group (after subtracting the cost of the promotion).
3. Conversion rate. The percentage of responders who become customers.
4. Database Marketing. Collecting data on customers and using it to provide recognition and services to customers, resulting in increased customer loyalty and repeat sales.
5. Direct Response. Advertising or promotion that seeks not just to provide information, but to generate an inquiry, order or visit.

We'll bring up more terms in future posts. In the meantime, this will help you understand what makes this interesting business tick.

The Executive Pressman

www.executivepress.com

(some content courtesy of the Database Marketing Institute, www.dbmarketing.com)