The Definitive Direct Marketing Glossary
By Greg Marshall

Jamie Paul is a senior list manager at the UK office of Clear Blue, one of the world's longest established mailing list companies, with over 100 offices all over the globe.

A

ABOVE THE LINE: Advertising using high profile media such as television and newspapers.

ACCESS TIME: The time taken by a computer to find or store a piece of information and act upon it.

ACD: See Automatic Call Director.

ACTION DEVICES: Techniques used in a marketing piece to generate a response by the reader.

ACTIVES: 1. Members whose subscriptions have not yet expired. 2. Listed customers who have made purchases within a year.

A.I.D.A: A guide to creating copy for a direct mail campaign. The letters stand for Get Attention, Arouse Interest, Stimulate Desire, Ask for Action.

ALPHANUMERIC: A coding system that uses both letters and numbers. Alphanumeric is a contraction of "alphabetic" and "numeric".

AREA BUNDLES: One of three ways a mail house can pre-sort the mailing before delivery to Royal Mail to receive postage discounts. Sorted by postcode range or sorting division. ASCII: A computer language used by PC programmers to create software (including direct marketing software). EBCDIC is its equivalent in mainframe computing.

ASSIGNED MAILING DATES: Agreed dates a rented database list should be mailed. Other dates are not acceptable without the list owners permission.

AUTOMATIC CALL DIRECTOR (ACD): A computer which handles incoming calls. An ACD directs the calls to an inbound communicator. If all communicators are busy, the ACD plays a tape recording and directs the call to the next available communicator.

AVERAGE ORDER VALUE: A simple mathematical formula used to establish the average order value. The total revenue generated from a program divided by the total number of orders equals the average order value.

 

  

B

BACK-END: Upselling a direct marketing campaign respondent (i.e. converting a prospect to a buyer or converting a buyer to a repeat buyer).

BACK TEST: Retesting an uncertain list which did not produce excellent results, but might have potential.

BAD PAY: Subscription or membership offers which are "bill me" but are cancelled when they are not paid.

BANGTAIL ENVELOPE: An envelope with an extra flap which people can tear off to use as the response device.

BATCHED JOB: A job that is grouped with other jobs as input to a computer system, unlike a transaction job entry where each job is run individually to completion.

BELOW THE LINE: Advertising using low profile media such as the Internet or direct mail.

BILL ENCLOSURE: Promotional material enclosed with a bill, an invoice or a statement.

BINGO CARD: Reply card inserted in a publication. Used by readers to request literature from companies whose products and services are either advertised or mentioned in editorial columns.

BOUNCE BACK: An offer enclosed with a mailing sent to fulfil a customer order.

BPI: See Bytes Per Inch.

BRC: Business Reply Card.

BRE: Business Reply Envelope.

BREAK-EVEN: The point in a business project when income equals expenses.

BRP: Business Reply Post.

BURST: To separate continuous form paper into individual sheets.

BUSINESS LIST: A list of names of businesses and individuals based on common business interests

BYTE: Sequence of adjacent binary digits operated upon as a unit and usually shorter than a computer word. A character is usually considered a byte. A single byte can contain either two numeric characters or one alphabetic or special character.

BYTES PER INCH (BPI): Characters represented by bytes per inch, often used in magnetic tapes.

 

C

C/A: Change of address.

CASH BUYER: A buyer who encloses payment with an order.

CASH RIDER: An order form that offers instalment terms, but a postscript offers the option of sending full cash payment with the order for a saving over the total instalment price. Cash rider is also called "Cash Up" or "Cash Option".

CATALOGUE: A book or booklet showing more than one product; graphics and text display merchandise with prices.

CELL(S): In reference to lists, a cell is a statistical unit or units; a group of individuals selected from a file on a common basis.

CHESHIRE LABELS: Paper that has printed names and addresses which are to be mechanically affixed individually to each mailing piece. The types of paper include fanfold, accordion fold, etc.

CIRCULARS: A printed advertisement in any medium. Circulars can include printed offers sent out by direct mailers.

CLEANSING: In list management, refers to the process of removing or altering a name and address inside a list. The list detail may be out of date, may have moved categories or may have been incorrectly entered.

CODECUTTER/CHIPHEAD: A programmer who writes computer software.

CODING: Identifying marks used on response coupons to identify the mailing list, version of mailing, or other differentiation within the mailing.

COLLATE: To assemble individual elements of a mailing in a sequence for inserting into a mailing envelope.

COMMISSION: A percentage of sale agreed upon between the list owner and the list manager/ broker for their part in selling a list rental.

COMPILE: A process where a computer translates a series of instructions written in a programming language into actual machine language.

COMPILED LIST: Any list of names and addresses that can be compiled from a variety of different sources including newspapers, directories, public records and retail sales slips, which identify groups of people with common traits.

COMPLETED CALLS: An outbound call where the target of the call has come to a decision regarding the offer; accepting, rejecting, remaining undecided or requesting additional information

COMPUTER PERSONALISATION: To print letters and other promotional material using names, addresses and special phrases' extracted from a computer database. Computer personalisation attempts to make the promotional material suit specific individuals.

COMPUTER SERVICE BUREAU: A facility either internal or external to a company, which provides specific or general data processing services.

COMPUTER RECORD: Information stored on magnetic tape or disk. In direct marketing addresses and names of individuals and companies.

CONSUMER: 1. Generally, a consumer is anyone who buys a product or uses a service. 2. In telemarketing, a consumer is someone who can be contacted at their residence after work or on the weekend.

CONTINUITY PROGRAM: Products or services bought as a series, instead of all at one time. Usually these products and services have a common theme and are shipped at regular intervals.

CONTINUOUS FORM: Paper forms used in printing which are folded at certain lengths. Letters, vouchers, invoices and cards can all be created using continuous forms.

CONTINUOUS STATIONARY: Forms designed for computer printing which are later trimmed to size and collated.

CONTROLLED CIRCULATION: Free publications with restricted distribution.

CO-OP MAILING: Where two or more organisations combine to make separate offers within the same mailing, each party sharing the mailing cost.

COPY: The written text used by marketers to present their offers to the public.

COST PER INQUIRY (C.P.I): Formula derived by dividing the total cost of a mailing or an advertisement by the number of inquiries received.

COST PER ORDER (C.P.O): Formula derived by dividing the total cost of a direct marketing campaign by the number of orders received. Based on actual orders rather than inquiries.

COST PER THOUSAND (C.P.M): Common rate for list rentals when fee is based on actual orders rather than inquiries.

COUPON: Part of an advertising promotion intended to be completed by the customer and returned to the advertiser.

COUPON CLIPPER: A person who has expressed interest in free or nominal-cost offers out of curiosity, with little or no real interest in purchasing the product.

C.P.I: See Cost Per Inquiry.

C.P.M: See Cost Per Thousand.

C.P.O: See Cost Per Order.

C.T.O: Contribution to overhead (profit).

 

D

DATA: A display of facts, concepts and instructions in a formal manner processed manually or automatically.

DATABASE: A collection of data. A direct marketing database provides a means to contact a group of prospects and a method to measure purchases.

DATA ENTRY STANDARD: 1. Design rules used when creating names and address records which treat all elements the same way. 2. Rules used to delete, rearrange, insert, or select any needed data.

DEAD MAIL: Mail sent to an incorrect address. The person or company having moved, changed names, etc.

DE-DUPLICATION: Controlled duplication which makes sure that no matter how many times a name and address is on a list, or how many lists contain that name and address, it will be mailed only once. De-duplication can also be called "Dupe Elimination" and "Merge/Purge".

DEFAULT SALUTATION: Names on a database or rented list which do not have proper titles. They need to be replaced with a common salutation such as "Dear Sir/Madam", "Dear Colleague", etc.

DELINQUENT: A person who has fallen behind in their payments for a product or service.

DELIVERY DATE: 1. The date an order is fulfilled. 2. Date a list user receives a specific list order from the list owner.

DELIVERY GUARANTEE: Refers to the percentage of the list guaranteed to be correct. The better the list the more accurate the deliverability.

DIRECT BAGS: Roal Mail's terminology for a larger pre-sorted mailing. A direct bag contains mailing pieces totalling at least 5 kg in weight - including the bag - or 300 articles, all of which carry addresses that have only one postcode.

DIRECT BUNDLES: Royal Mail category in which discounts are given if pre-sorted for one postcode, but must number more than 20 articles to the same postcode, or the bundle be 40 mm or more thick.

DIRECT MAIL ADVERTISING: Any promotional advertising which travels through the post, or is delivered to mail boxes by other distributors.

DIRECT MARKETING: A planned system of contacts seeking to produce a lead or an order. Using any media, direct marketing requires the use of a database and can be measured in costs and results.

DIRECT RESPONSE ADVERTISING: Advertising through any medium inviting direct response by any measurable means. Advertising on the telephone, through the mail, etc.

DONOR LIST: A list of those who have given money to charitable organisations.

DUMMY: 1. Name inserted deliberately into a list to verify how the list is being used. 2. A pre- production printed mock-up showing how the final article is likely to look and read.

DUPE: The appearance of identical, repeated information in a database. Dupe is short for "duplicate".

E

EBCDIC: Computer language used in mainframe computer programming which is distinguished from the ASCII language used by smaller PC's.

EXCHANGE: An agreement between mailers to exchange an equal quantity of mailing list names.

EXPIRE: Former customer who no longer purchases goods or services.

 

F

FILE MAINTENANCE: Changing, adding or deleting data in a file to keep it up-to-date. Exactly like "List Maintenance".

FIXED FIELD: A method of formatting list information in a computer file that puts every piece of data in a specific position relative to every other piece of data.

FLIP-CARD: Cards that can be "flipped" to display the next logical part of a telephone script in response to a customers questions over the phone.

FLOATING VARIABLE: "Personalised" information that can be placed anywhere within a laser text, usually within a sentence.

FORMAT: The form in which a mailing list is to be presented - this could be on a computer tape, on floppy disks, etc.

FREEPOST: Royal Mail postal service where a reply device can have postage charged to the original mailer, not the person who has responded afterwards.

FREE- STANDING INSERT: Leaflet or other printed material inserted loose in a publication or mailing package.

FREQUENCY: The number of times an individual has ordered over a certain period of time. See also "Monetary Value" and "Recency".

FRIEND-OF-A-FRIEND: Friend recommendations. The result of one party sending in the name of someone who might be interested in a specific advertiser's product or service.

FRONT-END: Activities performed to produce responses to a direct marketing program and the measurement of those activities.

FULFILMENT: 1. Process of supplying goods after an order has been received. 2. Process of reacting to a customer's request, covering everything that has to happen from the time the customer places an order until they are completely satisfied.

 

G

GEOGRAPHICS: Any method of subdividing a list, with geographic subdivisions.

GIMMICK: Attention seeking device, usually dimensional, attached to a direct mail printed piece.

GUARANTEE: A pledge given by the seller to the buyer detailing the way a seller will make good his offer.

H

HOUSE LIST: A mailing list made up by a company based on current or former customers or inquires for the companies product or service.

I

INBOUND TELEMARKETING: Handling an incoming call from a prospect or customer.

INCOMPLETED CALLS: Outbound calls in which the caller was unable to speak with the prospect or customer because, for whatever reason, they were unavailable.

INFLUENCER: In the business-to-business environment, a person involved in the buying decision process but who does not make the final decision.

INKJET: A type of printing that jets ink onto paper to produce text and graphics. Inkjet printing is a cheaper alternative to laser printing.

INQUIRY: Someone who has asked for literature or other information about a product or service. Unless otherwise stated, it is assumed no payment is required for the information. (A catalogue request is generally considered to be a specific type of inquiry.)

INSERT: Promotional piece placed in an outgoing package or invoice.

INSTALLMENT BUYER: A person who has ordered goods or services, but pays for them in periodic installments.

INTEGRATED MARKETING: A combination of two or more forms of marketing used to sell a product or service (e.g. a direct mail campaign combined with a series of television commercials).

INTER-LIST DUPLICATE: Duplication of name and address records between two or more lists.

K

KEY CODE (KEY): Group of letters and/or numbers, colours, or other markings, used to measure the specific effectiveness of media, lists, advertisements, offers, etc.

KEYLINE: Any one of many partial or complete descriptions of past buying history coded to include name and address information and current status.

 

L

LASER PERSONALISATION: Computer printing using a laser printer to personalise mailing pieces with specific individual information held on computer records.

LETTERSHOP/MAILHOUSE: Company which performs the mechanical details involved with mailing including addressing, imprinting, collating, etc.

LIFETIME VALUE: In direct mail and marketing, the total profit or loss estimated or realised from a customer over the active life of the customer's record.

LIFT LETTER: An extra component of the mailing piece in which a specific point of the offer is reinforced. LIST: Mailing List. Names and addresses of companies and individuals with a common interest, activity or characteristic.

LIST: Mailing List. Names and addresses of companies and individuals with a common interest, activity or characteristic.

LIST BROKER: A specialist who makes all the arrangements for one company to make use of another companies list. A broker's services can include research, selection, recommendation and subsequent evaluation.

LIST BUYER: 1. The term applied to someone who actually buys mailing lists. 2. Someone who orders mailing lists for a one-time use.

LIST CLEANING: 1. The process of correcting or updating a name and address from a mailing list. 2. Used to describe the removal of duplicates on house lists.

LIST COMPILER: A person who builds a list of names & addresses from a variety of sources. Sources can include directories, newspapers, public records, sales slips, trade show registrations, etc.

LIST EXCHANGE: Trading one or more lists with another company. This may involve a direct swap, a list for space, or a list for something which is equal in value.

LIST MAINTENANCE: Any method which keeps name and address records up-to-date.

LIST MANAGER: A person who oversees the use of a list(s) by others. The list manager, if not also the list owner, serves the owner by promoting and marketing a list, record keeping and list cleaning, along with the collection of list usage fees.

LIST OWNER: 1. A person or company who has built a list by compiling names which have something in common. 2. Someone who has purchased a list from someone else.

LIST RENTAL: The arrangement between the list owner and mailer where the owner gives the mailer a set of names for a one time use for which the list owner is paid a royalty by the mailer.

LIST ROYALTY: Payment to a list owner for use of a list on a one-time basis.

LIST SAMPLE: A collection of names selected from a list to evaluate the responsiveness of the list. See also "List Test".

LIST SELECTION: Processes of segregating smaller groups within a list. This segregation creates a list within a list.

LIST SOURCE: Original source of names and addresses for a mailing list.

LIST TEST: Part of the list selected to try and determine the effectiveness of the entire list. See also "List Sample".

LIST USER: A person using names and addresses of someone else's list as prospects for the user's product or service

.

LOYALTY PROGRAM: A program to reward customers who continually use a companies products or services. Loyalty programs can include company discount cards given as certain purchase levels are reached.

 

M

MAGNETIC TAPE: A computer storage device for electronically recording defined bits of data.

MAIL DATE: Date planned for a mailing, usually an agreement between the mailing list owner and list user.

MAILER: 1. Direct mail advertiser who promotes products or services by using house lists or his own list - or the two combined. 2. Folded carton, wrapper, or tube used to protect materials in the mail. 3. Printed direct mail advertising piece

.

MAILING MACHINE/INSERTER: Machine that attaches labels, addresses envelopes, inserts printed pieces into any style envelope as well as sticking postage on mail pieces.

MAIL ORDER BUYER: Someone who orders and pays for a product through the mail.

MAIL PREFERENCE SCHEME (MPS): A service where consumers can request to have their names taken off or added to lists.

MAILSORT: A discount structure for postage provided by Royal Mail for mailings over a certain volume.

MAINSTREAM: Direct marketing which makes use of high profile media - like television or newspapers - to promote its message.

MARGIN: The gross profit on sales derived by subtracting the cost of goods sold from gross revenue.

MASTER MAILER: Inserting machine for large envelopes.

MASTER FILE: A file that is of a permanent nature, or one that contains all sub- files.

MATCH: To make the typing of addresses, salutations, or inserts into letters agree with other imprinted copy.

MATCH CODE: Code developed by either the user or creator of a file for matching records contained in a second file.

MATCH FILL: Getting the body copy of a letter typeset and preprinted by a printer to achieve the appearance of a personalised letter. Names, addresses and other information can be added during computer printing.

MATCH MAIL: Matching together various personalised items within the same mailing kit.

MATTE FINISH: Dull paper finish without gloss.

MERGE-PURGE: To merge one file with another to produce a file with no duplicated names, etc.

MICR: Magnetic Ink Character Recognition. Ink that can be scanned by Optical Character Reading machines (OCR's). This type of toner is used frequently by banks to produce cheques.

MONETARY VALUE: Complete expenditure of a customer during a specific period of time.

MULTIPLE REGRESSION: Statistical technique used to compare the responses of a mailing with census demographics and list characteristics of mailing lists. Used to direct mail to the best types of people or areas. This technique can also be used to analyse customers, subscribers, etc.

 

N

NAME ACQUISITION: A way of soliciting a response to obtain names and addresses for a mailing list.

NEGATIVE OPTION: A buying plan in which a club member or customer agrees to accept and pay for products or services announced in advance at regular intervals. The customers can stop the company shipping the products only if they notify them, within a reasonable time after announcement, not to ship the merchandise.

NESTING: Placing one enclosure within another before inserting them into a mailing envelope.

NET NAME ARRANGEMENT: An agreement where the list owner agrees to accept adjusted payment for less than the total names shipped to the list user. (e.g. pay for total names mailed after duplicates are eliminated).

NO-PAY: One who has not paid for goods or services ordered.

NSP: National Sort Plan. Preferred sorting sequence according to Royal Mail regulations.

NTH NAME: A selection for a list test mailing where names are selected on the basis of the size of the test sample in relation to the size of the list.

 

O

OCR (OPTICAL CHARACTER RECOGNITION): Optical Character Reading machines. Machines used by companies and Royal Mail to read handwritten or typed characters using light sensitive devices.

OFFER: The terms promoting a particular product or service.

ONE-TIME BUYER: Buyers who have only ordered once.

ONE-TIME USE OF A LIST: Normally a list is rented for a one time use only. With a list exchange or list reproduction agreement it is usually understood that the mailer will not use the names more than once without the prior agreement of the list owner.

ORDER CARD: Reply card used to initiate an order through the mail.

ORDER FORM: Printed form on which a customer can provide a name and address to initiate an order by mail.

OUTBOUND TELEMARKETING: Calls that are placed by a marketer, as opposed to inbound telemarketing where the customer calls in first.

 

R

RANDOM ACCESS: An access mode where records are placed in non-sequential order in mass storage so they can be accessed rapidly. This is the same as "DirectAccess".

RECENCY: The latest recorded information about a company or customer on a customer list, in relation to purchasing or other recorded activity.

REFORMATTING: Converting a magnetic tape format from one arrangement to a more usable one. Exactly the same as "Conversion".

REGENERATION: A consistent attempt to get a prospect to respond through direct mail and telephone selling, after a prospect has expressed some degree of interest.

RELATIONAL DATABASE: A database that shows the relationship between various pieces of information stored about customers. The information stored can include anything from names and addresses to a customers buying habits. Relational databases make updating and altering records a much easier task.

RENEWAL: A subscription that has been renewed prior to it expiring or within six months after that date.

REPEAT BUYER: See Multiple Buyer.

RESPONSE RATE: Amount of responses received as a percentage of total promotions mailed.

RETURN ENVELOPES: Stamped or unstamped addressed reply envelopes. These are different from business reply envelopes which carry a postage payment guarantee.

RETURNS: 1. People who have responded to a direct mail program. 2. Products shipped to customers on free, or limited trails which are returned.

RFMR: Acronym for Recency Frequency Monetary Value Ratio. RFMR is a formula used to evaluate the potential of a mailing list to create responses.

ROLLOUT: To continue with the mailing after testing a portion of the mailing list.

ROYALTIES: Amount paid for the one time or continued use of a list or patent, etc.

RUNNING CHARGE: The price a list owner charges for names run or passed, but not used by a specific mailer'. When such a charge is made, it is usually to cover extra processing costs.

RUN OF PAPER (R.O.P): 1. Printing term applied to colour printing on regular paper and presses, compared with colour sections printed separately on colour presses. 2. Sometimes used to describe an advertisement positioned by publisher's choice in an other than preferred position for a special price

 

S

SAMPLE BUYER: A person who sends for a sample product. The sample can come free, for a small handling charge or at a special price.

SAMPLE PACKAGE: An example of the package to be mailed by the list user to a particular list. The sample package is submitted to the list owner for approval prior to commitment for one-time use of the list.

SEED: A name inserted deliberately into a list to verify list usage.

SELECTION CRITERIA: Refers to characteristics that identify segments or sub- groups within a list.

SELF-MAILER: A self-contained mailing piece which is designed to form an envelope when folded, therefore not requiring a separate outer envelope.

SEQUENTIAL PROCESSING: Information storage. Each item must be read one at a time, going through all the preceding records to get to the next record in sequential order.

SHEET-FED FORMS: Using a standard cut form in computer printing as opposed to continuous forms. Also called Cut-sheet Forms.

SOLO MAILING: A mailing which promotes only one product.

SOURCE COUNT: The number of names and addresses found in the media (or list sources) from which the names and addresses were derived.

SPLIT TEST: Representative samples from the same list, used for package tests, or to test homogeneity of the list.

STATEMENT STUFFER: Printed piece inserted in an envelope carrying a customer's statement of account.

STEP UP: Special premiums used to get a mail order buyer to increase his unit of purchase.

STOCK ART: Art sold to advertisers to be used in their promotions.

STOCK FORMATS: Direct Mail formats which have pre-printed illustrations or headings to which an advertiser adds his own copy.

SUBSCRIBER: Person who has paid to receive a periodical.

 

  

T

TAG: To mark a record with definitive criteria so it can be used or avoided in the future.

TAPE DENSITY: The number of bits of information (bytes) that can be included in an individual magnetic tape

TAPE DUMP: A printout of data from a tape used to check for things like correctness and reliability.

TAPE LAYOUT: A "map" of the data contained in each record and its location to the rest.

TAPE RECORD: All the information contained on a magnetic tape about companies and/or individuals.

TEASER: An advertisement or promotion planned to excite curiosity about a later advertisement or promotion.

TELEMARKETING: Using telecommunications in sales and marketing efforts.

TELESALES: Telephone selling where the marketer has a dialogue - scripted or open - with the prospect. The marketer is usually a qualified salesperson.

TEST PANEL: A term used to identify each of the parts or samples in a split test.

TEST TAPE: A group of representative records in a mailing list which allows a list user or service bureau to prepare for reformatting or converting to a form more efficient for the user.

TIE-IN: Mailing effort involving two or more advertisers working together.

TILL FORBID: An order by a customer which is to continue until the customer advises you to stop. Till forbid can also be abbreviated to "TF'.

TIP-ON: An item glued to a printed piece.

TITLE ADDRESSING: Functional titles used in compiling business lists, where no individual name has been found.

TOKEN: An involvement device, usually consisting of an order card designed to be removed from its original position and placed in a designated area on another card, which will signify a desire to subscribe or purchase.

TRAFFIC BUILDER: A direct mail piece used mainly as a way to attract customers to the mailer's place of business.

TRIAL BUYER: A person who buys a product on the understanding that they do not have to pay for it until a certain period of time has passed.

TRIAL SUBSCRIBER: A person ordering a publication or service on a conditional basis, giving them the right to test the service or periodical and return it if they are not satisfied.

 

U

UNCOLLECTIBLE: A person who has not paid for goods and services after a number of collection attempts.

UNIT OF SALE: The average amount spent by a customer on a mailing list.

UNIT RECORD: A form designed to record information about individual calls so they can be sorted, tabulated and printed in records and reports.

UNIVERSE: Total number of those who might be able to be included in a mailing list; all of whom fit a single set of specifications.

UPDATE: To add the most current information to a mailing list.

V

VARIABLE FIELD: A way of laying out list information for formatting that assigns a specific sequence to the data, but doesn't assign it specific positions. While this method conserves space it is generally more difficult to handle.

VARIABLE INFORMATION: Data that relates specifically to each individual person in database records.

VERIFICATION: Sending a questionnaire to a customer to ensure that the order is a valid one.

 


Copyright © Greg Marshall

The content and opinions expressed in this article do not necessarily reflect the views of nor are they endorsed by Clear Blue.