Find and Target Multi-Buyers
Multi-buyers, active mail-order purchasers, buy from several, often related, catalogs. But all multi-buyers aren’t created equal.
This month, I’ll examine strategies for mailing and re-mailing to multi-buyers; how to maximize this group’s buying performance; the priority multi-buyers should get in your merge/purge; and more.
Your service bureau identifies multi-buyers each time you perform a merge/purge (the process in which duplicate names are found on the various lists you plan to use for your upcoming mailing). A name you rent also may appear on two or more lists you rent from other list owners.
Unless you have a “net-name” agreement with a list owner, you’ll have to pay for the name every time it appears on a rented list. Net agreements usually are against the housefile and don’t include other outside lists you’re renting. In addition, such agreements traditionally are negotiated only on large quantities, such as 100,000 or more names, rented at one time.
So, if a catalog buyer found on outside List A also appears on rented List B and rented List C, you must pay all three list owners, in this example, for that particular name. However, you’re also entitled to mail that name three times, since you paid these list owners separately for their customer names. A buyer appearing on three outside rented lists is considered a three-time multi-buyer.
To summarize, you’re entitled to mail an outside rented name however many times it appears as a duplicate against the outside rented names you use for your mailing campaign.From the output of the merge/purge, you’ll have more two- than three-time multi-buyers, more three- than four-time multi-buyers and so on. The chart below shows the actual counts from a recent merge/purge. The gross number of outside names input into this merge/purge was 422,125.
Steve Lett graduated from Indiana University in 1970 and immediately began his 50-year career in Direct Marketing; mainly catalogs.
Steve spent the first 25 years of his career in executive level positions at both consumer and business-to-business companies. The next 25 years have been with Lett Direct, Inc., the company Steve founded in early 1995. Lett Direct, Inc., is a catalog and internet consulting firm specializing in circulation planning, plan execution, analysis and digital marketing (Google Premier Partner).
Steve has served on the Ethics Committee of the Direct Marketing Association (DMA) and on a number of company boards, both public and private. He served on the Board of the ACMA. He has been the subject of two Harvard Business School case studies. He is the author of a book, Strategic Catalog Marketing. Steve is a past Chairman of both the Catalog Council and Business Mail Council of the DMA. He spent a few years teaching Direct Marketing at Indiana University in Bloomington, Indiana.
You can contact Steve at email@example.com.