Strategy: Should You Remail the Same Prospect Names Within a Season?

Remailing the same prospect lists or cooperative database segments in the same season is common. But should you remail the exact same names? This is a frequently asked question, and as you’ll see, the best mailing strategy might not be obvious.

When a particular list is mailed, or cooperative database model segment is used, results are tracked by source code. If the results meet a predefined criteria — e.g., incremental breakeven, 20 percent less than incremental breakeven — you want to remail that same list or model. If 10,000 names initially were tested, it would make sense to mail 20,000 names next time, and continue to roll out as long as the results are positive.

Still Mail ‘Fresh’ Names

Using the same list and/or model, however, normally doesn’t mean using the same prospect names. When you place the list rental order, you often request OPU (omit previous usage). This means the list owner or co-op provides you with different names within the same list segment or database model. This allows you to mail to “fresh” names and not the same prospect names previously mailed.

But what happens when you request to re-use the same prospect list within a particular season? Recently, I set up a few tests to determine the effect on the response rate when the same exact names are remailed within 30, 60 and 90 days. The results might surprise you. Look at the first chart (below).

These results indicate that we can remail the same names within 60 days. However, when we attempt to mail names six months to one year old, the results decline substantially. The theory of prospecting is based to a large degree on the “recency” of the prospect names mailed. Recency of purchase always is the No. 1 criterion and the mail priority within standard RFM circulation segmentation.

Your response typically will decline when the same names are remailed, even within the same season or 60 days. But any decline in response generally is offset by two factors:

1. Seasonality. A typical prospect list for a consumer gift catalog will perform better the closer it’s mailed to the buying season. The same list mailed during the holiday season will perform about 20 percent better than when it was mailed in the fall.

2. Merchandising Changes. From one season to the next, up to 30 percent of the merchandise is dropped and replenished with new merchandise. The change in merchandising also will help offset any decline in results from mailing the same list twice.

With regard to cooperative databases like Abacus and Z-24, reuses commonly are done, usually by clients who do multiple mailings from a single merge. Depending on the mailer and the season, Abacus recommends at least four to six weeks between mailings.

Mailing to The Same Names Works

Typically, the fall-off in performance is about 10 percent to 15 percent (can vary by season). Using the same names from the co-ops works because the prospects coming to the top of the models are well qualified. Also, strong seasons hold up better than weak ones.

The main reasons you’d want to remail the same prospect names within a 60-day period are as follows:

Availability of Names: If you’re a large or niche cataloger, the universe of prospect names probably is limited. Therefore, you have to reuse the same names if you’re going to continue to prospect.

Time Factor: There might not be enough time in your schedule to receive new names, or you might not want the expense of a separate merge.

Cost Savings: Abacus charges $55/M on reused names compared with $70/M for “fresh” names. This is based on the net names that are reused. For example, if the initial shipment is 100,000 names and nets 85,000 names out of the merge, Abacus charges for 85,000 names if all the names are reused. Therefore, the savings to the mailer is $15/M, or approximately 20 percent. As you can see from the actual results in the second chart, it can be cost effective to remail the same names within a given season.

You can save money by reusing the same names, providing you do so within a 60-day period. A file can be reused without having a negative effect on the results. Mailing more than one catalog to a strong prospect can work much like running the same advertisement in a magazine more than once. It creates recognition and reinforces your brand. Prospects might be exposed to the catalog three times before they decide to order, for example. But it was the prior two mailings that paved the way for the actual purchase.

Prospect names are not like fine wine; they don’t get better with age. Therefore, keep in mind the importance of the “recency” factor when deciding to remail the same names. Any concern about a lower response rate resulting from reusing the same names can be offset by seasonality and merchandising factors. «

Stephen R. Lett is president of Lett Direct Inc., a catalog consulting firm specializing in circulation planning, forecasting and analysis. He is author of “Strategic Catalog Marketing,” a Catalog Success book published by Target Marketing Group Publications. Reach him at (302) 537-0375 or via his Web site www.lettdirect.com.