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Hotline Lists and
How to Mail Them While They’re Still Hot
I define a hotline select as those individuals on a list rental file
whom responded or purchased within the last three months. This is the
industry standard, although you will see list owners advertise their
hotlines as updated every month or every week.
Why does a hotline select exist? Mailers have known for some time that
many offers work best with hotline names. The theory is that people go
through buying or responding phases, so hit them while they’re hot!
Consequently, the quicker you can get to a person after they’ve
responded to another offer, the higher your response will be. This is
simply a fact of life for many opportunity seeker and low-end general
merchandise mailers, and for many fundraisers. Without the availability
of hotline names, they would be unable to mail profitably.
I have tested and proven this phenomenon many times. Here are actual
results of a well-structured timing test of one large (50,000), hotline
list selection:
|
Activity |
Days
From the Initial Response or Purchase |
Actual
Response Rate |
%
Change in Response |
|
Prospects respond or buy |
0 |
|
|
|
Prospect
names are added to list rental file |
+7 |
|
|
|
Names are
rented, delivered and divided into 5 test panels |
+12 |
|
|
|
Test
panel #1 mails |
+14 |
4.5% |
|
|
Test
panel #2 mails |
+21 |
3.9% |
-13% |
|
Test
panel #3 mails |
+28 |
3.2% |
-29% |
|
Test
panel #4 mails |
+35 |
2.8% |
-38% |
|
Test
panel #5 mails |
+42 |
2.7% |
-40% |
The astonishing aspect
of this test result is not only the huge drop off you see in just a
week, but look how soon this occurs after the prospects initial response
or purchase. In only a matter of three weeks, we see a dramatic drop in
response to the new offer. This is why many mailers mail on a weekly
basis and many hotlines are updated on a weekly basis as well. The sad
truth to this very real test result is that even monthly hotlines are no
longer ‘hot’, and three-month hotlines—forget it! Plus, many mailers who
have never mailed real hotlines are not even aware of their potential.
I am very familiar with the typical mailing schedules for many mailers
and it’s not un-common for promotions to be mailed on a quarterly
basis—and that’s only half the problem. Even these quarterly mailings
have lead times of months from list order to the actual drop date.
Mailing January hotlines in April is common practice for many mailers.
Organizing your printers, lettershop, list broker and service bureau,
not to mention your in-house support, to take full advantage of hotline
names can represent a major undertaking. But if you increase your
response rates as much as 40%, it’s well worth the effort. I have
implemented this strategy for a few mailers and it has completely
changed the way they do business, not to mention the huge increase in
profits they have experienced as a result. If you have success now
mailing hotlines, but are not mailing them on a weekly basis, as they
become available, then I strongly suggest you test this approach.
Proceed to Chapter 7... |