Bigger isn't Always Better When it Comes to Your Customer List

Your mother was right, good hygiene is important.

And as experienced mailers and marketers, we all know the value of a good list scrub, don't we? As the economy shifts and squirms and budgets shrink in over-reaction, we're tasked with transforming less into more. So what's list hygiene got to do with your shrinking budget? A whole lot.

Many companies are afraid that shrinking their total customer list will result in lowered opportunity. However, the opposite is actually true. You're far better off with an efficient, smaller customer list than a sloppy inefficient giant slosh of uncategorized, un-scrubbed names.

No one ever said maintaining the tidiness of your customer list is fun. It's an ongoing everyday task that needs the cooperation of everyone from call center reps to outside sales to customer service, marketing and of course your in-house Web and/or database crews. Your list needs to be coded, updated and corrected on an ongoing basis. The payoff for all this hard work will be the power to micro-target, upsell, cross sell and institute a whole new world of sales initiatives. In a nutshell, you're leaving money on the table if you're not regularly maintaining your customer list.

Fourth quarter for many businesses is a make or break moment. That spreadsheet you agonized over may be predicting your anticipated ROI. But, has your spreadsheet met that giant box of nixies or huge pile of bounces that haven't been deleted off your list yet? And while you're making introductions, be sure to also introduce your fourth quarter plan to your non-responders, non-clickers, 3+ month lapsed and, oh yeah, those disgruntled win backs still on your list.

When it comes to budgets and wasted money, the problems you face from a perpetually non-responsive name on your list are as big as an undeliverable. Neither have winning odds of getting on the good side of the ROI column on your spreadsheet.

When it comes to any kind of undeliverable, do not mail, unsubscribe, etc, if it's no good and it's not going to make you money, get rid of it. This name is eating away at your campaign's profits—it's that simple.

Lapsed, unresponsive, disgruntled customers are another matter. They need to be segmented into their own individual categories within your list. Each category then needs to have its own pertinent messaging—and mailed for the sole sake of cleaning up your list. By segmenting out each group into its own category within your list you're essentially giving each group its own "last stand." As you send out each segment's messaging keep a close eye. Track it and if they still don't perform—hit delete. Your next spreadsheet will thank you.

Now let's really go out on a list hygiene limb, shall we? As long as you have your scrubber handy and you're busy cleaning up your list into tidy little categories be sure you're coding each name on your list according to product/service used, demographics, top-customers, etc. The more you can segment out your list for relevant messaging the better your ROI will be on each campaign. This is because you are sending communication of interest to the recipient. You can also setup your list for loyalty programs, reminder messaging, re-order messaging, etc. You'll positively make your ROI column giddy.

Lastly, develop measures for correct input of new names into your list. Data-checker protocols need to be created, carried out and regularly policed. Then, set timetables for ongoing maintenance on a quarterly, bi-monthly or monthly basis so that you're always in control.

When it comes to maintenance of your list, the use of a professional e-mail service provider is tremendously beneficial. Though you will utilize the ESP's software for your e-mail transactions, the ESP's functionality enables you to track behaviors, segment the list and house different versions. This enables you to gain full control of your total list as this vital information can be carried over to your database for use all mediums.

So, here's the moral of the story my little Mailistas: Don't be lazy when it comes to list hygiene and maintenance. At the very least an unmaintained list will waste your time and at the very worst, especially in this economy, it will eat your limited budget ….and your spreadsheet will get very angry.

Carol Lustig is marketing director for Options Media, Boca Raton.

Like to submit an article to List Talk? Contact Jim Emerson at jim.emerson@penton.com