Buying mailing lists seems like an enticing way to expand your marketing outreach and get in front of new leads. However, purchasing mailing lists isn’t as straightforward as it seems. There are many issues that come along with purchasing a mailing list, making it an unsuccessful way of reaching potential new customers.
In general, the problems associated with purchasing mailing lists far outweigh the benefits. From outdated contacts to high costs and ethical concerns, there are many issues businesses could face if they decide to purchase a mailing list for their direct mail campaign. We’ll explore in greater detail the problems associated with buying mailing lists. We’ll also cover how EDDM is a better alternative strategy for generating new leads.
What Is a Mailing List?
A mailing list, in the context of direct mail marketing, is a carefully curated collection of addresses to which promotional materials are sent. These addresses can belong to individuals or businesses and are selected based on specific criteria to ensure that the marketing message reaches a relevant and potentially interested audience.
Mailing lists can be generated in various ways, each serving a unique purpose in reaching the target market. For example, some businesses may create a mailing list over time by asking for contact information from existing customers or leads. Other companies may be curious about other methods, such as purchasing a mailing list from a list broker.
Why Should Businesses Avoid Purchasing Mailing Lists?
Purchasing mailing lists from an outside source might seem like a shortcut to growing your customer base, but for small businesses, it can be an expensive, ineffective, and risky strategy. Many people commonly think that if they purchase a mailing list with a large number of contacts, it will lead to better results. But in reality, having a massive list of contacts doesn’t guarantee success. From outdated contacts to high purchasing costs, buying a mailing list is often ineffective compared to alternative solutions.
Outdated Contacts
The data in a mailing list has a short shelf life. As time passes, people move, change jobs, switch addresses, and update their contact information. Therefore, even if you purchase a mailing list that was accurate when you bought it, it’s likely to become outdated within a relatively short period. Most industry statistics suggest that contacts in a mailing list decay at a rate of about 1-2% per month or close to 20% per year.
Using outdated contacts on a mailing list can cost your business a lot of money and waste your time and energy. When your direct marketing campaign targets an outdated mailing list, you’re allocating valuable resources—time, money, and effort—toward individuals who may no longer be relevant to your business. These resources could be better spent on reaching an audience genuinely interested in your products or services.
High Costs
For those looking to purchase a mailing list, it can often be an expensive strategy that offers low returns. The cost of acquiring a sizeable list, often calculated per contact, can quickly add up, especially when taking into account the cost of sending emails to potentially uninterested or outdated contacts. This makes it a less cost-effective marketing strategy than other options, like EDDM or compiling your own contact list.
On average, the cost of purchasing a direct mail list can vary from about $50 to $250 per 1,000 contacts. However, the price of the list can vary widely based on factors like the size of the list, the quality of the data, and the criteria used for segmentation. Larger lists or those targeting specific demographics or niches often come at a premium, and costs can increase rapidly.
When you purchase a mailing list, you have limited control over the quality and accuracy of the data. You’re relying on a third-party list broker to provide you with contacts, and this lack of control can result in costly surprises, such as discovering that a substantial portion of the list is unresponsive or outdated, which is why one of the most significant issues with purchasing mailing lists is the low return on investment they often produce. When you buy a list, you’re essentially sending materials to individuals who may have no genuine interest in your products or services. As a result, your campaign’s response rates are often disappointingly low, which means you might not recoup the money you’ve invested.
Low Engagement Rates
Mailing lists often consist of people who may not have any prior interest or engagement in your products or services. As a result, engagement rates are often disappointingly low, leading to ineffective direct mail campaigns. The lack of engagement can also harm your reputation, making it harder to reach genuinely interested recipients in the future.
One of the main reasons that purchased mailing lists have such low engagement rates has to do with the lack of targeting. Purchased mailing lists are often one-size-fits-all. They may not be sufficiently targeted to match your ideal audience.
Without proper targeting, you’re essentially casting a wide net, hoping to catch a few interested fish. This broad approach doesn’t resonate with individuals who have specific needs or preferences, resulting in low engagement rates. Recipients may also be more likely to view your mail pieces as spam, which can harm your brand’s reputation.
Ethical and Legal Concerns
There are also several ethical and legal concerns to be aware of when purchasing mailing lists. One of the most significant ethical issues is the lack of consent. Individuals whose contact information is included in a purchased list may not have given explicit permission for their data to be used for marketing purposes. Sending unsolicited marketing materials to these individuals without their consent can be seen as intrusive and unethical.
With marketing mailing lists, there are also strict data privacy regulations in place to protect individuals’ personal information. Purchasing a mailing list without ensuring compliance with these regulations can lead to legal consequences. You have to make sure that the list you bought follows all legal requirements, which can take up your time.
Solution: Opting for EDDM Instead of Buying Mailing Lists
One of the best alternatives to buying mailing lists is opting for an Every Door Direct Mail (EDDM) campaign instead. EDDM is a highly effective and cost-efficient method for businesses of all sizes. It’s different from mailing lists, as you target geographic areas rather than individuals. EDDM allows you to choose specific neighborhoods, ZIP codes, or mail carrier routes to deliver your marketing materials. This ensures that your direct mail reaches an audience relevant to your business, increasing the likelihood of a positive response.
Purchasing mailing lists can be extremely costly, especially for small businesses operating on a tight budget. EDDM offers a more cost-effective solution. You pay per piece for postage, and you can tailor the volume of your mailing to suit your budget. The cost efficiency of EDDM makes it an attractive option for businesses looking to maximize their marketing dollars. Plus, with mailing lists, the number of outdated contacts eats away at your ROI. EDDM typically has a high ROI thanks to its budget-friendly postage costs and relevance to the recipients.
Additionally, EDDM increases your brand’s visibility within your local community. Repeated exposure through consistent direct mail campaigns can help establish brand recognition and trust, which is essential for long-term business growth and businesses with longer sales cycles. In comparison, mailing lists can potentially harm your brand’s reputation if it’s irrelevant to your recipients.
Building Your EDDM Campaign
If you want to build a cost-efficient direct mail campaign that sees high engagement rates and ROIs, then you should consider utilizing EDDM. Using a list broker to procure mailing lists often leads to lackluster results due to outdated contacts, high costs, and other issues. By using an alternative solution, like EDDM, you can feel confident knowing that your mailers will reach your intended audience.
We offer several different size options and campaign scopes to ensure that you find a solution that fits your budget and project goals. As an end-to-end solution for your direct mail campaign, we can help with the creation of materials all the way to tracking and measuring the results of your campaign. If you’re ready to get started, hop on our easy-to-use platform and begin creating your EDDM campaign. Our team is ready to help you with any questions you may have about building a successful direct mail campaign.
