Copyright 1999 Carol
Ann Waugh
Most
educational publishers rely heavily on direct mail in order to
promote and sell their products and services to educators. These
promotions run the gamut of a full catalog of all the products
in a company's product line to postcards announcing special offers
or new information available on a company's web site.
With
more than 4.4 million educators at 108,000 school buildings and
16,000 districts, no company can afford to cover this entire market
with one or more mailings.
So, how do you sift through all the options in order to make the
best list selection possible and increase your response rate?
Luckily, there are three companies that do a lot of the work for
you: Market
Data Retrieval, Quality
Education Data, and MCH.
All of these companies have complete databases of the education
market with a myriad of demographics attached to each school and
district. They can tell you what grade levels are taught in each
school, how many students are enrolled, how many computers are
in the school, the ethnic percentage of the school population,
the location (urban, suburban and rural) of the school and hundreds
of other statistics about that school.
These companies also have a database of teachers and administrators
and information about what they teach or their main job function.
Some companies also offer lists of teachers who have purchased
something from another company.
So, where do you start?My recommendation is to start with your
own customer database. By understanding your current market, you
can easily expand into selling your prospect market. The key is
to understand that your best prospects are those schools that
mirror the characteristics of your current customers.
All three of these companies offer a service that profiles your
customers against the entire education market. You send them a
file, they merge/purge the file, and generate reports that will
answer the following questions:
-
Are your customers mostly rural, suburban or rural?
-
Are
they small, medium or large?
-
Are
they rich, average or poor?
-
Are
the connected to the Internet or not?
-
Are
they public, private or Catholic?
Depending on your specific product line and the market limitations
or requirements of your company, these reports can all be tailored
to examine specific demographics.
The real advantage of this profile will be that your customer
database will now be "tagged" and you can use this to
select additional schools and districts to target by giving the
list compiler specific instructions on how to select new names.
Once you understand the demographics of your customer base, it
is time to determine your specific marketing strategies for selecting
your mailing lists.
Strategy
#1
Mail to your customer schools often
and in-depth.
Think of your customer school as a gold mine of new business.
Schools that have purchased only one product should be purchasing
more. Schools that have purchased several products will be ready
for offers that will motivate them to purchase entire product
lines or site licenses. Your list selection should include additional
teachers or administrators at these schools over and above
the names that you have captured in your customer database.
The direction to give the list company in this scenario would
be:
Select all the elementary schools and districts in our customer
database. Give me a list of all the grade 4 teachers, librarians,
media directors, and principals at each school. Select all the
districts associated with these schools and give me the names
of the supervisors of library services, Elementary Curriculum,
and Title I.
Strategy #2
Mail to all the schools within
your customer districts.
Say you have sold a reading program to an elementary school in
XYZ district. The best prospects for new business will be the
other elementary schools in that district.
The direction to give the list company in this scenario would
be:
Select all schools in my customer database. Identify all the districts
associated with these schools. Give me a lost of all the schools
in those districts and eliminate my customers.
Strategy #3
Mail to prospects that most
closely resemble your customers.
The profile report of your customer list will contain many market
penetration charts depending upon the demographics you
have chosen to analyze. The most common chart (and probably the
most useful) will be a chart of your customers by enrollment.
Enrollment has always been the key demographic characteristic
of list selection because the money that is funneled into schools
from the federal and state governments is generally divvied out
by the number of students in a district. Generally, the larger
the school, the more money they have to spend on your products
and services.
Starting with the enrollment chart, you can quickly see what segments
of the market you have the best penetration in.
The direction to give the list company in this scenario would
be:
Select all the prospect schools in the segments where we have
penetrated more than 50 % of the universe.
Using these three strategies in combination, will give you the
best lists for your next mailing and should increase your response
and revenues.
One final word.
Smart marketers know that tracking results is critical to future
success since the idiom of marketing is "do more of what
work and less of what doesn't". A simple strategy but one
many companies can't follow because they don't track responses
very well.
Even if you are not tracking specific lists, offers, mailings,
etc., there is a simple way you can measure your success. Simply
do a profile every year at the same time and track the differences
from one report to another. See if you have increased your business
from customers. Analyze whether you have increased your penetration
in a specific segment. Take charge of your future and stop the
strategy of mailing to the same list every year because that's
what you've done for the last five years. Remember, selecting
the right list is 60% of your success in direct mail marketing!
ABOUT THE AUTHOR
This article was written by Carol Ann Waugh, President of Xcellent
Marketing, a marketing and new business development firm specializing
in the educational and library market. Xcellent Marketing offers
a variety of marketing services to help publishers increase their
revenues and profits from identifying new markets, providing critiques
of web sites and marketing communications such as direct mail,
catalogs, advertisements, etc. as well as developing effective
traditional as well as Internet-based marketing plans. Carol can
be reached at (303) 388-5215 or at cwaugh@xcellentmarketing.com.
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