Marketing strategies are critical for any business. One important strategy is managing the prospect database, which involves more than just keeping the list clean by updating addresses, removing duplicates, and excluding deceased individuals and current members.
To manage the prospect database effectively, it's crucial to segment the list based on past monthly performance. This entails creating a response propensity profile to determine your mailings' depth, timing, and frequency. Remember, mailing closer to the enrollment deadline often yields better responses. It's also essential to mail the best-responding groups more frequently than the lower-responding ones. Regular testing can boost these decisions, a key aspect of refining your marketing strategies.
Based on my experience, allocating 75% of the direct mail budget within five months before the enrollment deadline is optimal for delivering the maximum CPA and sales volume requirements. This strategy involves gradually increasing the rollout database quantity as the enrollment deadline approaches, starting with low-penetration mailings. Other channels, such as DRTV and non-direct mail channels, should be utilized 9-10 months before enrollment to create demand and position your product against the competition.
In addition to direct mail, most plans run DRTV and print advertising to support their direct mail campaigns. These activities will positively impact your direct mail response rates while generating additional new business within these added channels.
Your direct mail should be personalized for existing members and potential new members. Existing members should receive a special package directed at them, while new prospects should receive a personalized package that speaks to them as potential new members.
In summary, to develop effective testing strategies, focus on database segmentation, drop frequency, creating executions, time of year, and channel support such as DRTV, digital overlays, radio, and newspaper inserts.