A while back we encountered a prospect interested in Lead Liaison’s revenue generation software. They told us they send about 10,000 emails per month and they were always buying “purchased lists” (list for sale from list brokers) – it sounded like one of their core strategies. We thought this was a great opportunity to blog on the subject of purchased lists. Are they a good source for outbound marketing? Should you feed your email marketing machine with purchased lists?
Unfortunately, the ROI on purchased lists is very low. There’s a better outbound marketing strategy which calls for using a “house list”. A “house list” is a company’s most valuable asset. It’s their existing contact database! We came across an article from Kevin Bush, Principal & CEO of Rainier Sky Marketing & Public Relations that further expounds on this subject. Here’s what Kevin had to say:
The ROI of Purchased Lists
The average response rate with a purchased prospect list is just 1.38 percent according to the Direct Marketing Association (DMA), and a quality list can cost you $400 to $700 per thousand (CPM) with a minimum purchase of 5,000 addresses.
Sound targeting and segmentation can significantly improve results, but organizations may have to test several list before finding a source that performs well. Having the communications piece professionally designed and written can also improve results, but it too adds to the cost. So, you can imagine the kind of long-term return on investment that direct marketing requires.
A better approach for smaller organizations is to simply do their own direct marketing. It might not be as efficient, but it can still be effective. With a basic data base or, preferably, contact management software a small organization can build its own list with resources they may just find online or at their local library. Coupled with a valuable call to action and personalized follow-up, the DMA reports the response rate on such “house” lists improves more than double up to an average 3.42 percent. – Kevin Bush, Rainier Sky Marketing & Public Relations
Getting the Most out of your House List
For most B2B companies building a house list from resources at their local library is not practical. Although, most businesses put themselves in a position to aggressively build their house list. Trade shows and website inquiries are two solid sources. Once you’ve got a house list in hand turn to revenue generation software to maximize return on this valuable asset.
Revenue generation software includes features such as closed loop email marketing, lead nurturing, list segmentation and lead scoring to help marketers get the most out of their “house lists”. It also includes lead capture techniques to optimize landing pages and trade show lead generation. If you’re interested in a free consultation to understand how we can help you recycle, renew and replenish your existing marketing database without wasting money on purchased lists contact us.
What’s your feedback on purchased lists? We would love to hear it.
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