Q: A marketing agency we use ran a test mailing of our tabloid. The test was that a second mailing was sent to 10,000 households in segment 1. The results showed that there was no significant difference in response rate between households in segment 1 who received a second mailing of the tabloid and households in segment 1 who only received one mailing of the tabloid. Segment 1 includes households with similar demographics of our best customers. They suggested we send tabloids to households in segment 4 rather than send a second tabloid to some households in segment 1. We mail a total of 80,000 tabloids. The test was we mailed 70,000 tabloids in mailing one and 10,000 additional tabloids were mailed to households for a second mailing.
My questions for LERN are as follows: is sending a second tabloid to good prospects betters than expanding our reach to a lower segment? Or should we only send second mailings to repeat customers who have actually taken a class rather than to good prospects?
A: What a great question. I also applaud your decision to test your responses to your mailings. This is very sound practice. Here is what LERN recommends:
1. Send out your first mailing to both prospects and past customers
2. Send out a second mailing to past/best customers
By mailing twice to your best customers, you have a better opportunity to increase your response rate.
I am not sure what you mean by "lower segment." Your mailings should target your most likely prospects and your past customers. Mailing to those who have never shown an interest in your program is generally not recommended, as response rates tend to be low for this group.
While demographic similarities are important in developing a targeting plan, they are only one element you need to consider. Geographic distribution, the competition, and other resources are also important factors.