Can your business benefit from a targeted lead list?
Last week, I had a chance to speak with a representative from USDataCorp, a provider of lead lists. The company gave good insight on how a small business can use and capitalize on targeted leads.
Anthony: What exactly is a "targeted, lead list" and why would a company desire one?
USDataCorp: A targeted list hosts contact information of potential clients who match pre-determined criteria sought after by a company for marketing purposes. A lead list works well regarding specific marketing campaigns. Rather than blindly searching for a desired market, a company can target it from the start.
Anthony: What is the difference between a response and a compiled lead list?
USDataCorp: A compiled list may be managed by a list owner via a database and contains contact information taken from telephone books, credit bureaus, annual reports, etc.
A response list can be more expensive, but is better targeted toward a specific population. The information is taken from responses given by people regarding products, services, or due to a contact request.
A small business' options regarding either type may be contingent on whether they are a business-to-business or business-to-consumer entity.
Anthony: Provide us with more information regarding the return on investment.
USDataCorp: In short, the price of a list is contingent on how well customers are targeted through criteria or "selects". As a lead list becomes better targeted, the price of the list rises.
Lead list success rates vary. On average, for a targeted mailing list, a 3 to 4 percent response rate is good. For an email list, the average response rate is lower - about .5 percent.
Most brokers' lists start at a minimum of between $500 to $1000 for either direct mail or targeted email lists (the former is usually priced higher).
In addition to the broker's price, a small business must also consider supplemental costs such as designing a direct mailer, postage, printing, etc.
A small business needs to consider the cost of a list, estimate a modest response rate, and then assess how much money they intend to make off of each new client recruited in order to get an idea on their intended return.
Anthony: What are some tips in shopping for a lead list?
USDataCorp: - Ask list providers about their "selects." Selects are what make the list better targeted. A provider with more select options may facilitate the possibility for the best return.
- Discuss the intended campaign with the list provider. They may be able to provide insight regarding choosing selects, drawing on experiences of past clients, and making suggestions regarding contact approaches.
- Ask about other services they may address. For example, for a direct mail campaign, the list provider may also be able to help in regards to aesthetic design.
- Speak with several list providers in order to measure how pricing, customer service, and any "extras" differ from provider to provider.
Anthony: Can you highlight any "tips" regarding how to use a lead list?
USDataCorp: - Orchestrate several versions of a contact message. Issue separate versions to subsets of recipients and survey what "version" is getting the best rate of response.
- Make note of the logistics of the campaign. To assess whether it is something a business should attempt again, all statistics and money numbers involved should be meticulously recorded.
- Do not abuse the lead list. It is unethical, but in addition, list providers implement "faux information" into their lists that will go to an address monitored by them. They will know if a user is abusing a rented list.
- Be aware when purchasing email lists. Estimated response rates are lower and some providers may not revise their list in regards to people who are opting out of receiving emails.
- Be aggressive with potential leads. Emails can be followed with direct mailers. Direct mailers can be followed by a call center campaign. Remember that the original reason to rent the list was to recruit more customers!
For more info on Philadelphia small business strategies:
Is search engine optimization in your budget?
Attracting business from a Web site
How a niche site extends marketing reach
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