In mass advertising, the message reaches many, but measuring its selling effectiveness is not easy. No wonder executives took a hard look at direct marketing, in which it is possible to mail two versions of the same letter and see which sells more life insurance. Even direct marketers felt the squeeze as the recession, coupled with skyrocketing postage and paper costs several years ago, pushed them to get smarter in figuring out who should get their catalogs and credit-card solicitations. That's because an essential element in all direct marketing is the request that consumers call 1-800, fill in a coupon, or mail back a postcard. Motor-vehicle records might indicate who has corrected vision and might need spiffy designer glasses.
Some companies buy, sell and trade response lists.
There are also indicators of habits and lifestyles. A subscriber to Runners World magazine, for example, might be someone interested in a healthy lifestyle who would appreciate an offer for vitamins or exercise equipment. Credit records might show who has a Neiman Marcus or Bloomingdale's credit card, making that person a more likely candidate for an offer of a luxury cruise than someone whose wallet is stuffed with J.C. Penney and Wal-Mart credit cards. Without computers, all that information would overwhelm marketers. The first step, she said, is for a company to learn as much as possible about its best customers.