213: Your Mailing List is Too Big

Almost a decade ago, I ordered a series of uniquely-sized boxes from ULINE. If you’re not familiar with the company, it sells an incredible variety of shipping and industrial supplies. Their catalog holds 788 pages and weighs 2.2 pounds.

And I’m still getting them, even though I haven’t purchased anything from them since then.

When I went to FedEx Office to weigh the catalog, the manager told me something like, “Tell ‘em I get six or seven copies of these at a time. A complete waste.”

I can’t imagine the expense of mailing these catalogs, but it doesn’t surprise me that they haven’t weeded me or the five extra FedEx Office managers from their list. I’ve worked for auctioneers using lists they started in the 90’s and “cleaned up” a decade ago. You know—because people who bought something during the Clinton or Bush administrations are still on the hunt.

I get it: those past customers were hard to acquire. You built that list ten or twenty bidders at a time. You pitch that list in your proposals—that you’ve got thousands of bidders at your disposal. But you and I both know that few on your mailing list register for each auction. So, why pay $.80 to $3.00 per person to reach people who aren’t coming to your auction? When you consider that you can upload that list to Facebook and reach that same audience for a penny apiece and then email them for no pennies apiece, it doesn’t make sense to make a huge impression to uninterested people.

That doesn’t mean you necessarily throw direct mail out altogether. You just have to be smart about it—efficient at it. Here are several suggestions for making the most out of your mailing list.

Don’t mail to anyone who hasn’t registered to bid in the last 18 months.

There are exceptions, but most people who were searching for an asset 18 months ago—but not recently—either have satiated that need or now want something different. There are exceptions like specific collectible categories or commercial equipment. On occasion, even some real estate categories have people who repeatedly buy the same type of property on irregular cycles. You can cover these exceptions with email blasts and Facebook ads or both.

Mail to runner-up bidders first.

The people with the greatest desire for what you sell are the people who didn’t get what they wanted last time. Also, they’ve already proven comfort with the auction method. Think of it in terms of a restaurant: the hungriest people order the most food.

Mail only to big hitters and/or frequent bidders.

MVPs want to feel like MVPs. The cost of advertising inefficiently is offset by purchase history. You can also pull just those who’ve registered at multiple auctions, spent a certain dollar threshold, or bought more than once. This list requires semi-annual analysis to discover new MVPs and retire former ones. If that sounds tedious, consider outsourcing the spreadsheet comparison to a gig work site like Fiverr or PeoplePerHour.

Mail a postcard to your big list and the brochure or catalog only to your best prospects.

I know auctioneers who still mail more than 10,000 copies of 6-, 8-, or 12-page brochures per auction. With the budget required for that, I could reach half a million prospects on Facebook and still have budget for a decent postcard campaign. An alternative compromise is to mail the full brochure or catalog to your repeat buyers, big-spend buyers, or potential sellers and then a high-impact postcard to the balance of your full database.

I’ve been subscribing to a local auction company’s mailing list for more than a decade and still get every sale bill—even though I’ve never bought anything in any of their auctions. I laugh because they obtained that list from one of my clients and forgot to change the unique file name of the list, which shows in the list-name code above my address. I relish the fact that they’ve spent hundreds of dollars marketing to someone who has worked for their competitor (and that the inside of every single piece has been printed upside down). I’m thankful they still mail to me, because that junk mail has continued to remind me to finish this article that I started almost two years ago. It’s safe to assume they won’t stop wasting their sellers’ money anytime soon. Hopefully, I don’t have to assume the same of you.

—

Stock image purchased from iStockPhoto.com

178: 5 Ways to Make Your Direct Mail Effective in a Digital World

I’ve written about Facebook so much in the past year that an auctioneer recently questioned whether I was still in the direct mail business. The short answer: yes. The longer answer: no two external media go together better than Facebook and direct mail.

It won’t surprise most of my readers that an auction company hired me to design more than 120 different postcards last year or that the people on their mailing list purchased millions of dollars’ worth of assets from them in 2016. What might surprise you is that this client mailed each postcard to less than 1% of their mailing list database—or that this same customer spent at least three times as much on Facebook per auction than they did on that very successful direct mail.

If your direct mail isn’t that efficient or effective, consider making some of the following adjustments.

Use first class postage to a few instead of standard mail to many.

Outside of Every Door Direct Mail, there’s rarely a reason an auctioneer should use standard mail. The USPS is allowed to take weeks to deliver it. It’s particularly sketchy when it crosses state lines. If you can’t afford first class postage, trim your mailing list. The time savings of switching to first class postage will give you extra days (or even weeks) for taking photos, writing copy, and processing proofs with your designer and seller.

Don’t mail to satiated buyers.

What is the buying cycle of the asset you’re advertising? If someone just bought a primary residence from you, there’s no reason to send them residential auction postcards for several years. Unless you’re marketing to investors or dealers, a list of recent buyers in a particular segment won’t be as efficient as finding new people who need that same thing. Your best bet is to market to past bidders who didn’t buy. That data can be curated in a few minutes per auction with just an extra column in your spreadsheet.

Send teaser postcards instead of brochures.

You have to trust your website. It’s your marketplace, even if your auctions are still offline. If someone isn’t motivated to get more information on your website from your postcard, (1) they aren’t motivated to purchase and/or (2) you need better content on your postcards. Since we can only use one subject line in our emails and about three sentences in our Facebook ads, it should be fairly easy to know how to be succinct with direct mail.

Or mail prestige pieces to maintain premium brand identity.

While Facebook is certainly efficient at keeping your brand in front of prospective sellers, it’s limited in how far your content can be differentiated from that of other brands. Direct mail, on the other hand, can be different shapes, sizes, textures, and colors (including metallic and neon). If you want to create a visual expectation for your brand that is superior to your competitor’s media, direct mail can effectively prove that.

This isn’t just for luxury brands and expensive assets. You can set the bar for any asset category or price point simply by design differences, but you have to consistently mail pieces that look similar in order to build that visual brand equity.

Leverage segmented lists and variable data printing.

Most auction software allows you to sort your bidder lists by purchase history. It only takes a few minutes per auction to add asset category data for each of those bidders or buyers. You shouldn’t have just one real estate list or one construction equipment list, because there are a number of subcategories within each segment. Once you have your lists segmented, you can use variable data to tailor each piece to the recipient’s interest.

While I recommend Facebook solutions for a lot of advertising challenges, I’m still bullish on direct mail. Well, to clarify: I’m bullish on attractive direct mail that gets to a targeted recipient quickly with a succinct message. Thankfully, for me, so are my clients.

—

Stock image purchased from iStockPhoto.com

6 Reasons Facebook Hasn’t Yet Killed Direct Mail

I got a big surprise in the mailbox yesterday. The cover of Auctioneer, the auction industry’s international trade journal, teased a story about the Auction Technology Specialist (ATS) program. Since I was on the panel that rewrote the curriculum for ATS and have been one of the instructors of the course since last summer, I was excited to see the coverage.

The surprise, though, came in the opening paragraphs of the article, when it was declared that the instructors had ditched all print media and used print advertising only to prove to sellers that it was a waste of advertising dollars.

You’d be surprised, too, if—on the same day you read that story—you had also designed three different postcards for one of those instructors and had consulted about a brochure with the other instructor. In fact, I designed 139 postcards last year for Grafe Auction, the company used as the case study throughout the course. Plus 15 already in 2016 (more than I have for any other client).

John Schultz, Robert Mayo, and I spend the vast majority of the course talking about digital media and analytics of all media. So, I understand if direct mail might seem like a tumbleweed ghost town to the casual observer.

I make money creating advertising for both Facebook and direct mail. Facebook is the biggest innovation in advertising ever. I truly believe that and am thankful for the times it bails me out of tough strategy situations with my clients. While Facebook collects a mind-boggling amount of data about its users, there are still audiences it can’t reach that direct mail can.

Your In-House Bidder, Banker, or Attorney Lists

Sure, you can email your registered bidders, biggest hitters, and referral agents; but we all know that direct mail is more disruptive. It has to be physically touched at least once, even to be tossed in the garbage. While Facebook can match 40-50% of your email addresses, that leaves 50-60% in limbo. With email open rates averaging in the 15-25% range, are you willing to take the chance that a number of your proven prospects won’t be bidding?

Acreage Owners (Including Absentee Owners)

I can buy direct mail lists of people who own specific amounts or ranges of acreages in many locations around the country. This is a critical list for farm real estate auctioneers—both in acquiring new sellers and in appealing to farmers looking to buy more land. Facebook doesn’t have any data remotely close to this category.

Owners of Fishing & Hunting Licenses

Facebook can give me fans of Realtree and Mossy Oak, Bass Pro Shop and Cabela’s. I can tap into lists of people who like kayak fishing, bow hunting, and trophy whitetail deer. If I want people with actual hunting or fishing licenses, though, I have to use direct mail. Also, since Facebook doesn’t allow the overt advertisement of guns and ammo, you’re going to need other disruptive media to advertise those wares.

Every Door Direct Mail

If your property needs the attention of everyone on a United States Postal Service (USPS) mail route, Facebook can’t match direct mail. No digital or other print media can, actually. With some ingenuity (that my mail house uses) this USPS tool can be expedited to almost first class delivery times.

SIC Code Businesses

Facebook can match a lot of professional roles—more than any medium I’ve found. What it can’t grab yet are businesses. For instance, today I was working on a proposal for a self-storage facility. I can get a direct mail list of those; Facebook didn’t have that category for entities, employers, or professions.

Chamber of Commerce Members

Facebook can’t tell you who takes part in offline groups like Rotary, the Chamber of Commerce, or other trade associations. If you’re lucky, you might have access to your group’s email database, but that’s usually not an option. Since most groups don’t have daily or weekly (or even monthly) print publications, how do you reach those movers and shakers?  Hint: it rhymes with “correct sail.”

As my clients and industry peers can tell you, I’m an evangelist for almost everything in the ATS course. It was a game-changer for my business and for the firms I serve every day. The part it didn’t change, though, is my belief that a tactile medium holds more value than ever in a digital world. For me and my clients—including both of my fellow ATS instructors—Facebook and direct mail are complimentary tools, not zero-sum competitors.

—

Stock image purchased from iStockPhoto.com.

122: The Right Mailing List for the Job

Direct mail typically accounts for almost 60% of my company’s billable work, and a bunch of mailing lists pass through my inbox every week. (My preferred mail house currently averages about 30,000 pieces of mail per business day.) Because of this experience, I regularly get asked where to find lists of buyers and sellers.

Usually I get a request like, “Where do I find people who want to buy [insert asset here]?” There is no such list of people with intentions. There are, however, multiple resources for lists of people who categorically are more likely to be interested in specific assets or services. I’ve narrowed them down to seven categories. Below, you’ll find a brief description of each category and then a flow chart to help you determine which is right for your situation.

Chamber of Commerce

Chambers of Commerce are typically looking for new infusions of income and are open to new members, even those from outside the community.

Pros: gets you in front of local movers & shakers, business people, and referral agents

Cons: usually only give addresses on labels (which can’t be automated and don’t receive USPS discounts); usually takes longer to obtain than electronic lists

Business SIC Codes

Big brother knows what companies do according to tax records and other public information. If you’re selling items with commercial value, it’s fairly easy to find similar businesses to the assets’ current user.

Pros: connects you with targeted prospects; lists arrive electronically and usually can be reused for little or no list cost; geographic targeting ranges from hyper-local to national

Cons: no guarantee that the piece will get past gate keeper to decision maker; mailing typically to a company, not a person; dependent on company accurately reporting their industry specialty

Trade Publication Subscribers

This can be industry-specific publications on the state, regional, or national level or generic business publications in a small geographic area. Regularly, because of publication dates and deadlines, advertising in these print publications isn’t feasible. However, many publications offer rental of their subscriber list.

Pros: gets you in front of niche buyers or local investors & referral agents; often come with surveyed demographics

Cons: can be very expensive, if available at all; often come as labels, which cost you postage and automated addressing

Every Door Direct Mail

The United States Postal Service (USPS) allows you to saturate neighborhoods like no other media with reduced postage costs.

Pros: concentrated geographic coverage, lower postage

Cons: can be slower than first class if not circumvented with secondary services; printing and mailing quantities can be higher to cover geographic area and USPS size minimums

Interest-Based Publication Subscribers

Collectors and people with similar interests often read niche publications. Regularly, because of publication dates and deadlines, advertising in these print publications isn’t feasible. However, many publications offer rental of their subscriber list.

Pros: gets you in front of niche buyers and highly-qualified prospects; often come with surveyed demographics

Cons: can be very expensive, if available at all; often come as labels, which cost you postage and automated addressing

Demographic Consumers

Thanks to public records, you can find people from a wide variety of demographic selectors, including some lists related to hobbies or interests.

Pros: connects you with targeted prospects; lists arrive electronically and usually can be reused for little or no list cost; geographic targeting ranges from hyper-local to national

Cons: prices can vary greatly, according to specificity of selectors

In-House Contacts

Auction, contact management, and database software allow you to capture past clients. Some of that software allows you to query specific indicators such as geography, spend level, etc.

Pros: typically free to use; offers pre-qualified prospects based on past interest; electronic nature allows for electronic use and USPS presorted discounts

Cons: requires maintenance (content input) and constant updating; not as exhaustive as purchased lists in that the selection is only from past interactions, not the community at large.

—

Stock image of mail boxes purchased from iStockPhoto.com.