If you knock at the front door of one of your customers you will know when they answer whether they are the person you are trying to reach, but how do you ascertain whether your direct mail communications are reaching the right person when you can’t visit each and every home you are contacting?
Thousands of people move home (in some cases leaving the country altogether) every year and this figure is increasing, but the lowest priority these people have is updating their contact details with every company they have ever done business with; updating address details with banks, credit card companies, utility suppliers, mobile phone providers, loyalty cards, pension providers, solicitors etc. can be a mammoth task alongside the general hassle of moving house. Perceived as an unimportant activity for a mover, it is unsurprising that customers fail to inform companies about a change of address.
The incoming tenant often has to deal with months of unwanted post addressed to people that have long since moved away, and many people throw this away instead of returning it to the original sender. Although a lot of direct mail is returned each year as a result of house moves and people wishing to unsubscribe from future mailings, there is a huge amount of direct mail that disappears into landfill, never reaching the intended recipient nor making its way back to the sender for removal. Further to this, many companies never action these returns, or take so long doing so that sending continues, despite having the information that some people have moved or do not wish to receive any further communications. This inaction on the part of the originating company can lead to negative perceptions of the business and its practices.
Research by The Software Bureau indicates that each piece of returned mail costs the originating company £4, yet many companies continue to print and send mail to these obsolete addresses, quickly amassing a huge bill that could be avoided through undertaking regular database cleansing. Estimates put a figure of 40% of returned mail being due to unsubscription requests, and 60% being due to goneaways. Printing and sending communications to addresses that are no longer related to a genuine customer is a waste of money and resources; funds and time that could be more efficiently assigned to attaining a cleaner and more reliable database.
One reason businesses do not remove goneaways from their databases is to avoid incurring the associated costs, but this is a short-sighted view as the costs of continuing to mail people who are not there will far outweigh that of keeping the database clean. Using a cleansing file like Re-mover means your database will be up to date to within one month of all house moves at any given time – that is much quicker than relying on new tenants to return the odd bit of unwanted post. If a direct mail campaign involves sending several iterations or reminders about a service, there is every chance that time and money has been invested in contacting a customer who has moved. If the new tenant then eventually returns all the unwanted mail you could be looking at a cost of £40 per record over a period of a few months – this adds up fast and cuts into the available marketing budget as well as skewing ROI figures.
Companies that regularly use Re-mover and other suppression files will see a much better return on investment from their campaigns, a lower overall campaign cost (due to reduced print and postage costs) and a much better reputation for not sending unwanted or irrelevant postal communications.