Effective lists target more than just income.

• Author: Turner, Jim
• Position: Direct Mail Essentials

One of the most important variables in determining the success of your direct mail campaign is the list. Direct mail is one of the most expensive media, so it's essential you mail only to the right prospects.

For every name you eliminate, you might save $0.50 or more, which is near the low end of typical production costs for most noncustomer mailings.

Geography and income are the first list variables that usually come to mind. Income is typically very important for most mailings, and especially so for financial institutions. But there are other criteria that can work alone or in combination with income to improve the return on your marketing investment.

For mailings to consumers, the most common geographic selections are based on Zip code. If you have a relatively small market, you may want to consider defining your list by census tracts, which are typically smaller than Zip codes, or carrier routes, which are smaller yet. In cases where a branch is the focal point, a list selected by a radius might be appropriate. The size of the radius usually varies with household density. For example, in an urban market, a radius of one mile or less might be used, while in rural markets, it could be many miles.

Tight geographic selections can be desirable even for larger banks with numerous branches. There may be distance factors or natural barriers such as highways, bridges or traffic patterns that make parts of some Zip codes impractical for specific branches. With careful geographic selections, you may be able to maneuver around these to create a more efficient mailing.

For most financial products, income is usually the next most significant targeting factor after geography. The income range selected will vary with your local market and product promoted.

For example, in selling a loan product such as home-equity credit...