CharityVillage® Research: Choosing a list broker the crucial element

Resources & Library

Path: Main Street : Resources & Library : Research Articles : Feature Article

Choosing a list broker the crucial element
Canadian FundRaiser: November 23, 2000
A good list broker can be a direct marketing merchant's most significant ally in exploring the viability and direction of a marketing program using the disciplines of direct marketing. Or stated differently, a mediocre mailing package sent to an excellent list will generally prove more profitable than an excellent mailing package sent to a mediocre list. The combination of an appropriate package with a strong offer going to a carefully selected list is still unbeatable in terms of pulling in orders and responses.

Selecting list brokerage services
An organization utilizing direct marketing typically selects a list broker on the basis of reputation and proven track record, with special emphasis on experience and expertise in the market(s) they are trying to reach. The organization will often consider the broker's reputation for service and on-time delivery of lists, as well as his knowledge of mailing procedures and computer processing. These qualities are musts today, and - in addition to list selection, segmentation and overlays - a good broker must thoroughly understand merge/purge, computer-assisted data manipulation and management, carrier walk coding and lettershop work.
A very important intangible must be added: the personality, interest and dedication of the professional who will be working so closely with the mailer. The list broker should be able to relate strongly and personally to the client's management team. Ideally, in time they will be welcomed as a vital and fully-functioning member of that team, bringing to the client all of the resources of the list broker's firm, while at the same time maintaining the confidentiality of an insider in the organization's operations.

Developing the customer 'profile'
Once a working relationship has developed between broker and client, they work as a team in analyzing current or prospective markets, well in advance of the selection of possible lists for testing. The list broker can assist the direct marketing merchant in analyzing the present and past performance of his mailings.
Some tests may have looked promising originally, but may not have produced sufficient paid orders or donations, or may not have resulted in repeat transactions. Some lists may have been unproductive overall - but certain portions of them may have worked very well. Some lists may produce good results but are priced too high to be used when compared with other lists.
Thorough analysis of mail response may show a `clustering' of respondents within certain geographic areas, or demographic/psychographic groupings. With the use of overlays and penetration analysis, the broker and client working together can often get a much more accurate picture of the customer than was previously available.

Teamwork: Matching a creative offer to a target audience
The analysis then leads in two separate but related directions. The broker is able to do thorough research on all list sources containing respondents similar to the profile of the client's customers - and can often discover a number of excellent new opportunities for testing. This research the broker performs goes far beyond the information generally available on the standard data cards supplied by the list owners or managers. Research activities may include conferences with list owners and managers, as well as comparisons with the mailing histories of other marketers with similar types of customers.
The list professional can make special arrangement with a list owner to make previously unavailable names available for a specific organization. The list professional may negotiate a list and data exchange, or assemble a database, or formulate and implement a unique net name arrangement.

A balanced opinion for management
The professional list broker's role as list intermediary is one of their principal assets. In recommending one list over another, the broker is guided by research and past performance. In suggesting computer processes or mailing arrangements, the broker seeks the maximum results for the organization's dollar. The broker offers a balanced outside opinion for management at the client's firm to weigh carefully along with the recommendations of their staff.
Meanwhile, the client's creative staff or advertising agency is able to develop offers and packages that will appeal directly to the target audience. The broker can arrange for testing of several packages to similar prospects - all the while tracking list sources and responsiveness. The information gathered from the results of these tests will help determine which packages and which prospects should be mailed in future campaigns.
There is more to good list selection than providing analysis and reviewing test results. A competent list and data professional will have a significant body of experience in successfully reaching specific audiences, and will bring a mix of art and science to each assignment. There is science in the measurement of the effectiveness of a campaign, program or project. There is art in the `leaps of intuition' towards the possibility of accessing a responsive audience for the product or service being offered.
Source: Christian Lists & Data, Box 200516, Arlington, TX 76006. For more information, call Merri Dennis at 817-277-1469, fax 817-277-7580, or eMail at mdennis@ldsc.com.