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Our printing community has long progressed to the age of computer technology. Many of today's printers need to have an understanding of data ,and how to use it as a value-add capability, which can be offered to their customers.
The database is an intrinsic part of working with variable-data printing (VDP). You need two components to have a successful VDP campaign: the design template and the database. Both must work to produce higher response rates, which drive revenue.
The context for leveraging the power of databases is for the print service provider to help their client get the maximum return (ROI) and response rate. Some key metrics: Response rate is the total number of responses received, divided by the total number of pieces mailed. Cost per response is the total cost of the campaign divided by the number of responses received. The conversion rate is defined as the total number of sales made, divided by the total number of responses received. The ROI is the net profit, divided by the total cost of the campaign.
According to USAData, studies show that, on average, every dollar spent on direct-mail advertising brings in $11.49 in sales. The prospects you reach want to hear from you. The U.S. Postal Service states 70 percent of all consumers would rather receive advertising and promotional materials via regular mail.
A Call To Action
According to a DMA survey, 46 percent of respondents said they would increase the use of external database sources for their direct-mail campaigns. We need to consider the correct message with a call to action, and target the right recipient, at the right time.
Customer databases are the best source to capture information for a successful campaign. They are usually rich with information. The data needs to be accurate, recent, and complete. If so, you have a good database to work with. Quality data means everything to the campaign. If the data is old and dated, you will not get a good response rate and the ROI will be disappointing.
Product or Service Upgrades
To increase response rates and ROIs, target the best recipients, make the most appropriate offer, and create a mailer with relevant information, along with a good graphical design. Use the database to target the right person—such as product/service upgrades to an existing customer. Cross-sell related products/services. Offer age-specific products/services, and gear toward certain lifestyles and life stages.
The offer needs to be relevant. High potential customers get better offers. For example, casinos are the premier masters of optimizing data. Airline frequent flyer programs have multi levels, with multi offers per level. Avoid the use of personal or sensitive information, especially if the recipient did not provide it. A natural attractor to the reader is using their name appropriately. Remind the customer that there is some relationship they have with the company making the offer. A reminder of a past purchase or a past service date will make a connection. Avoid the overuse of personalization. Do not use exact dates such as a birth date or anniversary date. This gets too personal and too exact.
Images are worth a thousand words. If you are targeting a young couple, have images of a young couple. If you are targeting products/services for use by a particular gender, be gender specific with the image.
Keep it Clean
Now what if you database is less than perfect? Data hygiene/cleansing is a first step to take. Look at "Addressability," which is verifying, correcting, and applying five-digit zip codes and zip+4 codes. Delivery Sequence File Second Generation (DSF2) identifies undeliverable addresses and provides information about the address makeup, business or residential.
NCOA is the National Change of Address, which uses the USPS change of address information. This reduces undeliverable mail, which identifies and corrects errors. Other processes include BestAddress, ChangePlusMaxCOA, De-Duplication, and Deceased Removal. Advanced database hygiene can improve response rates by 5 to 10 percent, and improved ROI by 15 to 25 percent.
The use of third-party databases can also enhance campaign effectiveness. These organizations are defined as list providers and database management firms. They sell the database, which can be targeted to your criteria. The list provider can provide statements of accuracy and data hygiene information. The database management firm not only can sell databases, it can help with managing that data. These firms also consult with print providers to assist in improving the targeting and ROIs for each direct-mail campaign.
There are different types of prospect databases, which should reflect the type of product/service offered and the target audience. These include Consumer, Business, Resident, New Mover/New Homeowner/New Mortgage, New Businesses, Credit Scored databases, and Miscellaneous (educators, doctors, students, etc.). Complied Consumer databases are complete and versatile.
Ed Bokuniewicz has 27 years in the graphic arts industry. Currently, he is a business development specialist for Eastman Kodak Co. and an Adjunct Professor at the New York City College of Technology teaching print on demand.
author: By Ed Bokuniewicz