Want to Reach More of Your Potential Market?

Recently our Sales Manager told me of a creative solution she implemented to help one of our clients reach more of their potential market. The client operates a national chain of dental offices. Their normal marketing consists of reaching all the carrier routes that have a median income of at least $35,000 and are within 8 miles of an office. They use the resident list to reach this market and enjoy all the benefits of using this type of list which include delivery to every address within the carrier routes that meet the income and distance criteria, a low $/M list cost, and the lowest postage cost possible.

However, since there are carrier routes within 8 miles of their offices that they are not reaching due to the income limitation, the client was looking for possible ways to profitably reach more of their market within these carrier routes. In a strategy session to discuss marketing tactics and better understand how their business generates profit, we realized that households with children between the ages of 7 and 18 have high profit potential based on normal on-going dental hygiene and maintenance needs plus the prevalent need for orthodontia. To reach this highly profitable potential market we tapped the consumer list to select at the household level those households containing children in the target age range that met the income criteria. This is a market not penetrated before and the initial results from their direct mail campaigns have been very encouraging.

Consider combining household selects from the consumer list with your resident list mailings to reach more of your potential market.

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Email Marketing?

Why am I talking about email marketing in a blog about resident lists? Because it is becoming more and more relevant as marketers move to embrace integrated or multi-channel marketing. This new marketing revolution allows marketers to reach their target audience through a variety of channels, each of which supports the other. The various channels available could include direct mail, email marketing, paid Internet marketing, and social media networks like Facebook or LinkedIn.

I am watching this new revolution unfold for one of our clients who mails a coupon publication monthly using the resident list. For several months now they have been mailing as usual, but supplementing their direct mail with two email marketing campaigns during the month. The email campaigns target demographically appropriate prospects within the zip codes that encompass their advertiser’s businesses. So far, the results are meeting their expectations as they watch traffic on their web site jump substantially following each email broadcast. Once on the web site visitors are able to download coupons that are available through the printed publication as well. Integrating these two channels, direct mail and email, is allowing this client to broaden their reach and response and improve resulting coupon redemptions at their advertiser’s businesses.

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Make the Most of the Holiday Season

Halloween is right around the corner and Thanksgiving and Christmas will be here before we know it. For many marketers the holiday season represents a unique business opportunity because many consumers open their wallets at this time of the year and up their spending. For most retailers the holidays and the 4th quarter represent their highest quarter for sales and profits. For non-profits this time of the year is also the time when they receive their highest level of donations as many find themselves feeling generous to those who have needs (and many also time their donations at year end to maximize their tax deductions). Churches, too, find that this is the time of year when people are moved to attend religious services. Home improvement, painting, and interior design businesses thrive at this time as the holiday hostess and host want to spruce their home up so that it looks its best for holiday guests and visitors.

What does all this have to do with the resident list? Well, many of the successful businesses and organizations noted above—retailers, non-profits, churches, and home improvement services—promote their businesses and causes using direct mail marketing. In addition, many use the resident list as their list of choice to reach their target audience—in the right neighborhood, around their store or church location, and reaching those with the right demographics. I hope that you already have your holiday direct mail campaigns planned and organized. If not, there is still time to make this most of this special time of the year. But, don’t wait, get started now!

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Can the Resident List Work for Non-Profits?

Conventional direct marketing wisdom would say “No, the resident list will not work for non-profits.” Conventional direct marketing wisdom dictates that when mailing to acquire new donors one would rent a list(s) of names of individuals who are known donors and often donors to a similar non-profit cause.

However, I have seen a number of significant non-profit organizations use the resident list very successfully to generate new donors. Their acquisition mailings were holiday appeals and the mailing package was very simple and low cost. They used the resident plus list that contains names on approximately 80% of the records so there is an element of personalization on the majority of the pieces. In addition, the resident list was selected using an income demographic so that the appeal mailing was directed only to higher income carrier routes. Potential donors in high income routes logically have more discretionary income available to donate to a non-profit.

I think their secret to success is a combination of factors that converge to create a very low cost in the mail. First, the resident list is a very low cost list relative to a named known donor list—probably 1/10 the cost. Second, using the resident list allows for the lowest postage rate possible, ECR WSS. Finally, the package mailed is simple and low cost. When the appeal is over and the donations are all in, the $ donated per $ spent ratio is high enough to make the campaign successful based on the usual non-profit financial ratios that benchmark success.

Consider using the resident plus list for your next appeal mailing.

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Are You A Coupon Mailer? If So, Read This!

An article published in yesterday’s New York Times business section, A Clip-and-Save Renaissance, notes that coupon use has risen dramatically during the past year as the economy has been in recession. It notes that even though “it may be the digital age, when it comes to pinching pennies, most consumers are opting for a method that is well over a 100 years old: the paper coupon.” Not only has coupon redemption risen 23 percent during the first of half of 2009, paper coupons account for 99.5 percent of the coupons redeemed in the country.

The resident list is the primary list used by many coupon mailers who mail coupons in envelopes, printed in magazines or publications, or as part of a self-mailer.

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Do You Want to Reach Businesses?

Some direct mail marketers offer products and services that are targeted to businesses. A simple example might be a fast food restaurant that wants to reach businesses around their location with a coupon offer to drive lunch traffic. Since the resident list (res/occ list) reaches all addresses that are delivered by the US Postal Service, there are over 10 million addresses that the USPS identifies as business deliveries. Business marketers can tap into this subset of business addresses to reach their target market. The business list can be targeted geographically at the zip code or carrier route level. But, since this is an address-only list, demographic targeting by SIC code, employee size, sales size, etc. is not possible. Address quality for the occupant business list is excellent since the USPS maintains the address database and deliverability is close to 100%. If the marketer wants to reach both residences and businesses, they can mail to an integrated list containing both types of addresses sorted in postal carrier walk sequence so that they can take advantage of the lowest postage rates possible.

In summary, the business addresses that are part of the resident list offer a great opportunity for marketers who want to reach a business audience with high deliverability and the lowest postage cost possible.

Take a look at resident list counts by zip code and carrier route by downloading free count reports. Business counts are included.

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Who Actually Uses a Resident List?

In this blog I am going to provide you with a list of companies and businesses I have known who successfully use the resident list (res/occ list) for their direct mail marketing efforts.

Here you go—dry cleaners, restaurants, companies who mail coupons in envelopes, newspapers, magazine publishers, mailing houses, hospitals, printers, event promoters, health insurance companies, churches, house cleaning services, funeral homes, pennysaver-type shoppers, water districts, bus companies, non-profits, trash pick up services, telecom companies, automotive repair services, cable television providers, marriage mail companies, hair salons, nail salons, advertising agencies, dentists, health clubs and gyms, colleges—2 year and 4 year, insurance agents, marketing communication companies, graphic designers, house painters, banks, vineyards, spas, fast food chains, coupon magazines, and doctors.

And this is just a partial list! These companies and businesses use the resident list because it allows them to mail to households in their geographically targeted market trading area. They can select or filter homes, apartments, and mobile home spaces to reach just the right audience. And, they mail at the lowest postage rates available! Most of these companies are repetitive mailers who send out messages weekly, monthly, quarterly, or yearly as part of their on-going marketing efforts to acquire new customers.

Should you being using the resident list to help grow your business?

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Do You Want the Lowest Postage Rates Possible?

Among the numerous benefits of the resident list (res/occ list) is the fact that using the resident list for your direct mail campaign allows you to take advantage of the lowest postage rates available from the US Postal Service. Today, the postage cost to mail a First Class letter is 44¢. However, most direct mail campaigns that use a resident list will mail under the Standard Mail classification (used to be called Bulk Rate). A commercial letter that can run on US Postal Service high-speed sorting equipment (automation compatible) can cost as much as 27¢ to mail under Standard Mail rates. If that same letter is mailed using a resident list, the postage drops to 18.2¢. That same letter can be mailed for 13.9¢ if the mail is delivered to the appropriate USPS Sectional Center Facility. If you are a non-profit mailer, those same costs are 11¢ and 6.7¢.

What do these postage rate savings mean in terms of real dollars and cents? In each example below, it is assumed that the number of pieces mailed is 10,000. In the most extreme case, the savings for a non-profit mailer between the highest First Class rate and the lowest Standard Mail rate is 37.3¢ per piece or a savings of $3,730! Wow—that’s a lot of money! A less extreme and more realistic case is the mailer that uses the resident list and is able to move their postage rate from 27¢ to 18.2¢. These are still decent savings of $880.

The name of the game in direct mail marketing is results, response, and ROI. Using the resident list with all its benefits and taking advantage of the lowest postage rates possible should give you the best opportunity to maximize your results and ROI.

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Resident List Updating – A Dynamic and Active Process

Like all mailing list databases, the resident list (res/occ list) is a dynamic list of addresses that is changing daily. New construction is taking place and new homes and businesses are being added to the list. Homes and businesses are being vacated or reoccupied and the vacancy flag on resident list addresses is being updated. The US Postal Service is constantly reorganizing and realigning the 200,000+ carrier routes that exist within their distribution system. Thus, addresses are moving out of one route and into another route. Individual postal carriers make changes to the way they walk their route and deliver the mail each day. This activity requires changes to the walk sequence identifier that exists on each resident list address. And finally, buildings are torn down and these addresses are removed from the resident list. In most cases this happens on a one-off, random basis and other times the elimination of addresses is more dramatic, think Hurricane Katrina.

The US Postal Service provides updates to the resident list on a weekly basis to CDS (Computerized Delivery Sequence) qualified companies who own and maintain a resident list. To insure the best results, response rates, and ROI for your direct mail campaign, make sure you are using a resident list that is current and updated. That way you will reach all the deliverable addresses in your targeted geography. These addresses will be directed to the correct US Postal Service carrier route and the walk sequence will be accurate so that you qualify for the lowest postage rates possible.

Do not under estimate the importance of using a resident list that is current and updated.

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Do You Want Names with Your Resident List?

Many direct mail marketers successfully mail the resident list (res/occ list) in its native form as a highly accurate and deliverable address list, but without the name of the recipient. The mailing piece is usually title addressed to RESIDENT.

However, there are marketers who want to use the resident list and take advantage of the increased personalization that results by have the recipient’s name on the mailing piece. Depending on the mailer, the offer, and the format of the mailing piece, testing has shown that using the recipient’s name will indeed increase the response rate and ROI. For those marketers the Resident Plus list is available. Resident Plus is created by matching the resident list to consumer databases and appending the head of household name from the consumer database to the resident list. On average, 80% of the addresses on the resident list are available with names.

The beauty of the use of Resident Plus is that in addition to increased response rates, the mailer is also able to take advantage of the lowest postage rates available under the Standard Mail category, ECR walk sequence saturation.

Consider use of the Resident Plus list that provides names on the resident list when planning your next direct mail campaign.

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Why is the Resident List the Most Deliverable List Available?

I feel confident making the claim that the resident list (res/occ list) is the most deliverable list available. The resident list delivery rate will always be higher than any named consumer or business list on the market. Based on 30 years of experience in the list business, I estimate the resident list to be deliverable in excess of 99.5%. Most consumer and business lists will be deliverable at between 80% and 95%. What explains this difference in deliverability?

First, the resident list is compiled and updated by the US Postal Service and their postal carriers who actually deliver the mail. This compilation and updating is done by the front liners who visit every mailbox in the US every day. They have intimate knowledge of all 150,000,000 delivery points in the country.

Second, the resident list contains accurate and complete secondary address information on all deliveries that require this information. Every delivery point that requires an apartment, unit, suite, or space number will have this information on the resident list. This information is often missing on named consumer and business lists and contributes to deliverability issues with these databases.

Third, the resident list does not have names. With the mobility in society and so many people and businesses moving, a named consumer or business list is aging and becoming less deliverable every day.

Consider the importance of deliverability when selecting a mailing list. By getting more of your mailing pieces delivered, your return on investment or ROI will improve.

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What is Rooftop Mapping?

If your mailing geography has to be very precise, you might want to consider rooftop mapping. We have worked with many clients who are required to do “notification” mailings. Some examples include restaurants who have applied for a liquor license, gas stations that are replacing their tanks, liquor stores that are new to a neighborhood and businesses that are expanding and doing new construction. Various governmental agencies that oversee these situations require that a “notification” mailing be sent to the residents that live within 500 feet or 1000 feet, for instance, from the location involved. Using a computerized mapping system that has rooftop mapping capabilities this very precise mapping is easily accomplished.

Several other client examples come to mind. More than once we have been asked to use rooftop mapping to define an area that is two to three blocks around a bus route. The bus company was proposing changes to their routes and schedules and was required to notify those in the immediate neighborhood. In another case, we used rooftop mapping to define the area 1,000 feet around a marathon route so that the marathon organizers could inform the neighborhood of street closures on the day of the marathon.

If you are required to send our “notification” mailings or want to engage in micro marketing, rooftop mapping may be the answer for you.

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Resident List Demographic Selections – Ethnic Marketing

Marketers who want to reach the African American, Hispanic American, or Asian American market can use the ethnic selections available on the resident list to do so. The ethnic make up of each carrier route (approximately 500 households) within each zip code is known and is compiled and updated using census data. Using this ethnic data for selection, the marketer can reach those carrier routes or pockets of households that are predominately, or contain a higher %, of the ethnic group that they want to target. Using this ability to hone in on populations that are made up of a specific ethnic group is an ideal way to filter the resident list and improve response rates and ROI.

If your product or service appeals to a specific ethnic group, consider using the ethnic selections available on the resident list.

Take a look at resident list counts by zip code and carrier route by downloading free count reports. The ethnic makeup for each carrier route is available.

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Resident List Demographic Selections – Age

Another common demographic selection available and used to filter the resident list is age. The median age of the population in each carrier route is known, compiled, and updated from census data. Age selections are used by direct mail marketers to target their list and find those pockets that are most likely to respond to their offer. Age is not used as widely and commonly as income, but in my experience it has been used primarily by marketers who are offering and selling products and services to senior citizens, age 65+. Using the age selection on the resident list they are able to identify and isolate carrier routes that have a predominance of older residents. This increases their rate of success and ROI.

Consider using the age selection on the resident list as a way to improve your direct mail success.

Take a look at resident list counts by zip code and carrier route by downloading free count reports. The age level for each carrier route is available.

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Resident List Demographic Selections – Income

Smart direct mail marketers use all the tools at their disposal to filter and target their mailing lists so that their message reaches those most likely to respond. It’s all about ROI, Return on Investment. We’ve talked about the use of geographic selections to narrow the list to the optimum or ideal geography be it county, zip code, carrier route, or zip+4 code. We’ve talked about using radius and/or drive time mapping to define the geography most likely to respond to a direct mail campaign. Our last discussion was about using dwelling type selections to narrow the list and make it most responsive.

Another tool available when using the resident list is demographic selection. The most popular demographic selection is income. Income is defined as the median household income of the carrier route. If you remember, a carrier route has an average of 500 households. Since a typical zip code might contain 10,000 households, that zip code is made up of 20 individual and unique carrier routes. In one of the zip codes near our office the carrier route median income ranges from $49,000 to $218,000. Quite a wide range! Think of each carrier route as a neighborhood with its own unique characteristics, income being one of them.

The smart marketer will use the carrier route income selection to their advantage when filtering the resident list. If their offer requires a higher level of disposable income, the marketer has the option to select only the higher income carrier routes in a zip code that they want to reach. Conversely, if their offer is value-oriented with coupon savings that would appeal to a lower level of income, they can select the lower income routes in the zip code. Other creative uses of carrier route income selection are possible.

Be sure to consider income when selecting or filtering the resident list.

Take a look at resident list counts by zip code and carrier route by downloading free count reports. The income level for each carrier route is available.

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Can I Select Homes or Apartments from a Resident/Occupant List?

Dwelling type selection from a resident/occupant list is certainly available. The three main types of dwelling selections are: homes, apartments, and spaces. Homes are defined as those residential dwellings that have a primary address only e.g. 1234 Main St. Apartments are those residential dwellings that have both a primary address and a secondary address e.g. 1234 Main St Apt 105. Typical secondary address abbreviations for apartments are APT or UNIT. A third type of dwelling selection is spaces which refers to mobile homes or trailers. Spaces are defined as those residential dwellings that have both a primary address and a secondary address e.g. 1234 Main St Spc 155. Typical secondary address abbreviations for spaces are SPC (space) or TRLR (trailer).

Smart marketers use dwelling type selection to target their direct mail campaigns to those most likely to respond. The homes only selection works well for companies selling home improvement services like remodeling, reroofing, landscaping, siding, etc. Real estate agents and brokers often use the apartments only selection to reach renters who may be candidates for purchasing a home. Depending on the marketer and what they sell or offer, spaces can either be included or excluded from the resident/occupant list selection.

Be sure to consider dwelling type selection when defining your resident/occupant list selections.

Take a look at resident/occupant list counts by dwelling type by downloading free count reports.

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Mailing List Geography, Part 4 – What is Drive Time Mapping?

Although radius mapping is often used to define geography for direct mail campaigns and mailing list selection, some marketers are more interested in using drive time mapping to define their geography. Radius mapping could be used to reach all the households within five miles of a store location, for instance. However, depending on traffic routes, streets, highways, and natural boundaries, people living at the edge of that five mile radius may find that it takes them between 15 minutes and 35 minutes to reach the store. The store knows that most shoppers will not travel for more than 25 minutes to come to their location. Thus, direct mail marketers are now turning to drive time mapping to define their mailing list selections.

Using drive time mapping the marketer can specify that their mailing list contains only those households that are located within a 25 minute drive of the store. The ideal target audience is reached and waste is eliminated versus using the five mile radius approach. Drive time mapping is an exciting new way to select mailing lists that is made possible by improved computerized mapping technologies.

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Mailing List Geography, Part 3 – Want to Use Radius Mapping?

Many marketers want to define their geographic market or reach by using radius mapping. Radius mapping allows the marketer to target the geographical reach of their direct mail campaign by defining the distance or quantity desired around a specific location—a store or restaurant, for instance. A grocery store, for example, might want to reach all the households within a one mile radius of their location. Their research indicates that this is their ideal target geographical market. In another application of radius mapping, a dry cleaner may have a direct mail budget that allows them to mail 5,000. Using radius mapping they can mail to the 5,000 households that are closest to their location. Radius mapping is a powerful geographic selection tool used by mail direct mail marketers.

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Mailing List Geography, Part 2 – Want to Reach the Neighborhood Market?

For many marketers even the zip code is not granular or precise enough as they want to target their direct mail campaign to a specific neighborhood, for instance, around a store or restaurant location. Since each zip code is sub divided into postal carrier routes, this unit of geography can be used to more tightly target their direct mailing. The postal carrier route represents those deliveries made by a US Postal Service letter carrier. A typical route contains approximately 500 deliveries on average.

At an even more finite level, a mailing list can be targeted to the Zip+4 level. The finest sub division of the zip code is the Zip+4. This unit of geography typically represents one side of one city block in an urban area and contains approximately 5 households on average. Real estate agents and home improvement contractors often select their mailing lists using the Zip+4 to reach a very specific and tightly targeted group of households.

Take a look at maps of carrier route boundaries or download Resident List counts by carrier route.

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Mailing List Geography, Part 1 – What Are Some Common Selections?

The use of geography is one of the primary selections used to filter or target a mailing list. At the highest level a national marketer could plan to send a mailing to the entire United States. This is rarely done, however, as most marketers want to more precisely target their direct mail campaign. Below the national level a marketer could choose to mail to an entire state or could select certain counties within a state. The most common geographic select is at the zip code level. A typical zip code in an urban area might contain 8,000 to 10,000 households.

Take a look at mailing list counts by zip code by downloading free count reports.

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What is a Resident/Occupant List?

A resident/occupant list is a list of all the addresses that the US Postal Service delivers mail to in the United States. The list contains nearly 150,000,000 addresses. It includes the address of the physical structure of homes and businesses as well as Post Office Box addresses. Some consumers and businesses rent Post Office Boxes and receive mail at their PO Box.

For direct mail marketing the resident/occupant list with resident addresses is a powerful tool that is used by savvy companies to get their message to potential and prospective customers.

The list can be filtered and targeted so that the direct mail message reaches the most desirable audience. Selections are available by geography, dwelling type, and demographics.

Examine a resident/occupant list data card to see more details about this exciting list.