The Direct Mail Era - In the List Owner's perspective

1. By
Yogesh Aggarwal
Global Business Director
Yellow Umbrella Group
The Direct Mail Era

2. Critical success factors
• Realistic Expectations
• Relevant Communication
• Correct Timing
• Correct Mail size
• Correct Test Size
• Correct Evaluation of Results
• Understanding of Profile

3. Direct Mail Response
A List owner’s Perspective
1. Responds to a factor of your knowledge on
Chosen segment
2. HNI Syndrome
3. Database options and cuts available
4. Living with list owners

4. Responds to a factor of your
knowledge on Chosen segment
• Major Flaws – Individual / Corporate
misunderstanding on what Works / Worked or
Doesn’t..
• Zero Profile knowledge… a Failure in doing
Homework before running campaign.
• Segment knowledge: Study Product / Market
/ Target Segment
• Target those who require / would respond
and not to all…

5. HNI Syndrome
A little bit of TOO MUCH
• A segment over-done.
• Everyone wants a bit of HNI
– 100% database queries are for HNI
– 100% companies wants to target HNI
Is HNI so Important ??
Small Test…… Define it…..

6. Basic Questions to answer yourself
before Targeting HNI
• Why HNI?
• How Do you connect to HNI?
• Is HNI your Target segment?
• What is your expectation from HNI?
HNI… HNI… HNI…
HNI Syndrome
Continued…

7. HNI Syndrome
Continued…
Purchase Behavior
• It’s not the money that responds but the
profile and lifestyle of a person which does.
• Target the group by Profile, Educational
balance…..
So how would you select the Data??
Largely a Psychographic study of the TA?
Continued..

8. What is Database????
– a key component in Direct Marketing
You Buy Customers and not the Mailing Lists
Options & Cuts Available
Databases are available by deep segmentation on
Psychographic & Demographic classification
Spending Patterns

9. Critical factors – Data selection
• What is your current donor profile?
– By Location
– By Age
– By Occupation
–By Availability of Data with List owners
Now Lets understand
Psychographic study of the Target Audience…

10. Psychographic Analysis
• It is a Technique of Geographic & Demographic
study on psychological measurement, which
includes the measurement of knowledge, value,
abilities, attitudes, buying motives and
personality traits.
• Gender, Age, income, occupation, Location &
even Religion play vital role in any purchase
behavior.
• Psychographic data can be purchased from direct
marketers or market profiles for general
marketers

11. Database options and
surrogates
Segment Surrogate
By Occupation CEO/MD
General Manager +
Business Heads
By Ownership Car Owners
Mutual fund owners of High value
By Business Directors , Proprietors
By Credit Credit Limit 1.5 Lakh +
By Residence Residents to Premium localities
By Age High Networth + Age > 40
By Ability to spend High value shoppers
High value donors

12. Living with list owners
List owner is like your doctor.
• Share the objective
• Share the communication
• Share the expectations
–What ROI ?
Do not look for immediate R.O.I (return on
investment).
Building a good relationship with the customer
is possible only by winning loyalty.

13. Living with list owners
Continued…
–What Media?
To maximize your R.O.I, It is vitally important to test your
campaigns.
– What Budget? & What size of campaign?
Start small campaigns and test various things to find what
works
(Vivid Segments / Different Creative / Different Offerings)
Then, just scale it up, your profit will scale up along.

14. Living with list owners
Continued…
– Method to measure?
A homework on what works and what doesn’t is very
eminent before running a large scale campaign / or to
derive a conclusion
– What Time?
Streamline your offers & campaigns with the current
situation / Market Trends
Communicate well
- Your segment
- Your interpretation of HNI

15. Last but not the Least…
It’s a War..
Direct mail vis-à-vis Email/SMS/Tele calling