Wednesday, April 7, 2010

Pay Attention To What You Learn From A Merge-Purge

Most direct mailers will perform a merge/purge on the prospect lists they rent for a mailing against their customer or donor file. Obviously, the primary reason is they do not want to mail someone who is already their customer.

However, there's a lot to be learned in the merge/purge process. It has been proven over and over again multiple buyers or multiple donors are better responders. They respond at a better rate and they also purchase or donate at a higher amount.

The first thing to decide is the merge/purge hierarchy. List #1 is obviously your own house file. Many mailers will start the merge/purge process with the rental list that gives them the best response. Then proceed from there. When you find a "hit", a name that appears as your customer as well as a customer on the list you are renting, don't throw the name from the rented list away. In their rental agreement, most mailers make sure they have a clause in the agreement that says they reserve the right to mail that name at a later date.

You now have found a name that is not only your customer but a customer also on the list you are renting. That person is a multiple buyer. Mark that person on your customer list as a multiple buyer. Mail multiple buyers from your customer list under a separate code. You will find the response rate and average dollar order is higher than those who are not multiple buyers. Since you have reserved the right to mail that name from the rented list at a later date, a month later mail that name again with a different offer. You will find the response will be at least 50% to 60% of the original mailing.

Now what do you do with names you find on both your customer list and several of the lists you are renting. The same thing as above. These are multiple-multiple buyers. Then how about those names that are multiple buyers on the lists you are renting but do not match any name on your customer list. Code these names as "outside" multiple buyers. You'll find these names respond better than those you rent who are not multiple buyers.

You can learn a lot from paying close attention to your merge/purge process.

Make sure you discuss this and make a solid plan with your list broker and your merge/purge supplier.

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