Glossary Direct Mail Terms

9-Digit ZIP Code or ZIP+4: Extension of the five-digit ZIP coded providing the U.S. Postal Service with even more precise destination information to facilitate mail handling.  The nine-digit ZIP is based on a system of grids.  The first two digits of the added four digits are a sector; the last two digits are a segment within a sector.  The USPS intends the nine-digit ZIP to be used by business mailers, not individuals, and offers a small discount for its use.  Another benefit provided by the nine-digit ZIP is that it can serve as a basis for demographic and psychographic selections from mailing lists.

Accordion Fold: Two or more parallel folds in a letter so it opens like an accordion.

Address Block: The format in which name and addresses are printed on top of letters.

Address Service Requested: A message appearing on mailing envelopes that authorizes the post office to charge the sender a fee for providing a new address (if known) of a business or person no longer at the address on the mailing piece.

Append: The matching of two or more lists that contain the same names or addresses, but where one list adds additional data such as demographic or geographic variables to the other. Synonyms: enhancement, data overlay.

Automation-Compatible Mail: Mail that can be scanned and processed by automated mail processing equipment such as a barcode sorter.

Bar Code: The nine-digit ZIP code translated into a coding structure of vertical bars and half bars used in order to speed the sorting of mail and enabling mailers to take a discount on postage.

Bleed: In printing, the extension of color to the edge of the page, accomplished by printing on oversized paper and trimming the excess.

Block Group: U.S. Bureau of the Census term denoting a cluster of blocks in which 800 to 1000 people reside. Block groups are a subset of census tracts.

Body Copy: The main portion of a written sales pitch, separate from headlines and illustrations, containing descriptions, features, benefits and offers.

Bulk Mail: Mail that is rated for postage partly by weight and partly by the number of pieces in the mailing.  The term is generally used to refer to Standard Mail.

Business List: A business mailing list consists of mail addresses of businesses and their employees. Such lists are used to sell products and services of interest to businesses.

Call to Action: Copy that encourages the reader to respond, and describes how (by mailing in a reply card or phoning a toll-free number, for example).

Call Out: A short section of copy, usually rendered in bold or larger typeface, and often set off from the main text, that emphasizes key features, benefits or other key messages.

Carrier Route Presort Mail: Mail sorted by carrier route to qualify for discount postage rateds.

Cheshire Labels: Address labels printed on specially prepared paper and mechanically affixed to mailing envelopes one at a time.

CASS (Coding Accuracy Support System): Created by the U.S. Postal Service to ensure the accuracy of software programs used by service bureaus to check addresses and code mailings for delivery.

Compiled List: A list of names and addresses gathered from directories, newspapers, public records, etc. identifying people or organizations with common characteristics.

Consumer List: Any list of individuals at home addresses. Such lists are used to sell products and services directly to individuals and families. See also business list.

CPI (Cost Per Inquiry): A simple formula that tells you how much money you spent to generate one sales inquiry. Calculated by dividing the cost of your mailing by the number of inquiries (not sales orders) received.

Cost Per Piece: Cost to produce each individual mail piece in a promotional mailing. Usually includes writing, design, printing, list rental and postage. Calculated by dividing total costs by the number of pieces mailed.

CPM (Cost Per Thousand): One of the most common measurements in advertising and direct marketing. Tells you how much you must spend to communicate your message to one thousand people. The M in CPM stands for Mille, the Roman numeral used to represent 1,000.

CPO (Cost Per Order): Similar to Cost Per Inquiry except it measures your cost to generate a sale (order) rather than an inquiry. Calculated by dividing the cost of your mailing by the number of sales completed.

Database: A file that is maintained on a computer comprised of pertinent information such as a company’s prospects or customers. The file can serve multiple applications and be maintained for various purposes. The following definitions apply to databases used for direct marketing purposes.

  • Database Analyses: Interpreting information within the database in order to gain customer insight and improve marketing efficiency.

  • Commercial Database Management: Professional management of large compiled databases for list segmentation and rental.

  • Database Modeling: Using statistical techniques in order to predict future customer behavior.

Data Card: Detailed description of a mailing list, supplied by list brokers and list owners.

Data Overlays: The matching of two or more lists that contain the same names or addresses but where one list adds additional data such as demographics or geographics to the other. Synonym: enhancement.

Decoy: A unique name inserted into a mailing list so that the list owner can verify that the mailing list is used according to the terms of the list rental agreement, If a business mails to a rented list more times than it is allowed to, the list owner will know because the decoy names in the list will receive each mailing and notify the list owner.

Deduping: The process of removing duplicate entries from mailing lists. Deduping results in lower costs because it reduces the amount of postage and marketing collateral needed for direct mail campaigns.

DSF (Delivery Sequence File): A computerized file of more than 125 million records containing all the addresses the U.S. Postal Service serves throughout the U.S. Each address record features ZIP+4, carrier route, delivery sequence, delivery type and seasonal delivery information. Mailers use it to maintain accurate and complete addresses on the lists they own and rent as well as being able to code their mail for walk sequence discounts from the postal service.

Demographics: Social and economic information about human populations including age, gender, income, education, family structure, type of residence, ownership of cars, etc. which pertain to a specific location or geographic unit such as a given ZIP code or county.

Direct Mail: Using the U.S. Postal Service to delivery your message.

Drop Date: The calendar date when a direct mail campaign is to be delivered to the post office for mailing.

Dupe: Short for duplicate. Identical or almost identical names that appear more than once in a mailing list.

Duplex Lasering: Laser printing on the front and back of a letter or promotional piece.

File: A structured collection of customer records.

Fulfillment: The process of responding to inquiries and orders from people who responded to a direct mail promotion. Includes sending information, shipping products and billing for products ordered.

Geocoding: The process of appending latitude and longitude coordinates to a database record so it can be properly placed on a geographical map.

Geographics: Any method of subdividing a list, based on geographic subdivisions ZIP codes, sectional centers, cities, counties, states, regions).

Hotline List: The most recent names available on a list, typically names added within the last three months.
House List: A list of names and addresses that a company has compiled from inquiries, orders or acquisition, used to promote the company’s products and services.

Indicia: A unique printed artwork box in the top right corner of a mailing piece, authorized by the post office, indicating that postage has been paid by the mailer.

Ink Jet Printing: Superheated dots of ink that are sprayed from an ink reservoir on the printhead to form full characters.

John Samples: Sample direct mail packages addressed to a fictitious John Sample of Any Street, Any City, and kept by the mailer as a record of the look and contents of each mailing.

Johnson Box: Copy placed at the top of a letter and surrounded by a box or other graphic element, usually highlighting benefits or the offer, to persuade prospects to read on. Named after Frank Johnson, American direct mail pioneer, who invented the device to promote magazine subscriptions in the 1970’s.

Key Code: A group of letters or numbers (or combination of each) colors or other marks, usually placed on order forms or reply cards, to help mailers measure the effectiveness of their mailing lists, offers, creative, timing and other variables. Also called a Source Code.

Laser Printing: Similar to a photocopy machine, the laser printer uses a laser beam, toner, and fuser to “etch” the image onto a photoelectric drum.

List: Also called a mailing list. Names and addresses of individuals or businesses who share a common characteristic (such as all being golfers, or purchasing managers at industrial chemical firms).

List Cleaning: The process of updating a list in order to remove any undeliverable addresses. Other cleaning activities could include removing duplicates, bad debts, names on the DMA Mail Preference Service, prison SIPs, etc.

List Maintenance: The ongoing process of keeping a mailing list up-to-date by adding, editing and deleting data.

Merge/Purge: The process of combining (merging) two or more lists into one list while removing (purging) duplicate names.

Minimum Order Requirement: A stipulation stating that payment of a given amount (minimum) will be paid regardless of quantity of order.

NCOA (National Change of Address): A service provided by the U.S. Postal Service, through licensed computer service bureaus, that enables mailers to make any necessary address corrections prior to their mailing being dropped. The mailer provides a magnetic tape that is run against the national change of address and then is returned to the mailer with all corrections made.

Negative Option: A direct mail buying option in which the customer agrees to receive and pay for products or services at regular intervals (such as receiving a book a month) unless the customer tells the company in advance not to ship the product. (see Positive Option below)

Nixie: A piece of mail returned to the sender by the post office because of an incorrect or undeliverable name or address.

Offer: The incentive that a business gives prospects to motivate them to respond to their mailing, either by placing an order or by taking the next step in the sales process.

Offset Printing: Using a metal or paper plate, ink is first transferred to an off-set drum and then passed to the paper.

One-time Usage: The stipulation in a list rental agreement that the advertiser will mail to the names on the list once only.

Peel-off Label: A self-adhesive label enclosed in a mailing package, intended to be removed and attached to an order card.

Personalization: Using/printing personal information, such as a first or last name, in a direct mail campaign. See Variable Imaging.

Piggy Back: An offer that accompanies another offer, free of charge.

PLANET Code: A bar code that allows mailers to track a mail piece or an entire mail campaign, throughout the USPS delivery system.

Positive Option: A method of selling products and services using the same technique as Negative Option (see above) but requiring customers to place an order each time.

Premium: An item offered to a buyer, usually at no charge, to encourage them to place an order. Premiums that are included in the mail package are called front-end premiums. Premiums that the buyer must request are called back-end premiums.

Presorted Mail: A form of mail preparation, required to bypass certain postal operations, in which the mailer groups pieces in a mailing by ZIP Code or by carrier route or carrier walk sequence (or other USPS recommended separation).

Pressure Sensitive Label: A self-adhesive label that can be peeled off a sheet and placed on a direct mail piece for addressing.

Psychographics: The qualities or characteristics of individuals which indicate lifestyle, purchase habits, attitudes and personal values.

Purge: To remove duplicates or unwanted names from a mailing list.

Reply Card: A card included in a mailing, which the prospect completes and returns to the sender in response to the offer. Often postage paid.

Return Postage Guaranteed: An endorsement printed on the face of envelopes stating the sender will pay the post office to return undeliverable standard (third-class) bulk mail.

RFMR ( Recency, Frequency, Monetary Value Ratio): A formula used by direct mailers to calculate the sales potential of names on a mailing list.

Salutation: The way in which the reader is addressed at the start of a letter (‘Dear Tom’, ‘Greetings’, ‘Hello’).

Saturated Mailing: A mailing that targets all deliverable addresses within a specific geographic area. It is the least expensive bulk mail type as it goes only to addresses and is not name specific or personalized in any way.

Sectional Center Facility (SCF): A postal facility that serves as the processing and distribution center (P&DC) for post offices in a designated geographic area as defined by the first three digits of the ZIP Codes of those offices. Some SCFs serve more than one 3-digit ZIP Code range.

Self Mailer: A direct mail piece (post card) that mails without an envelope.

Seeding: False or ‘dummy’ names added to a mailing list as a way to check delivery and uncover any authorized list usage.

Sheet-Fed Press: An offset printer that prints on paper which is fed one sheet at a time. Used primarily for short runs or higher-quality printing.

Source Code: A group of letters or numbers (or combination of each) colors or other marks, usually placed on order forms or reply cards, to help mailers measure the effectiveness of their mailing lists, offers, creative, timing and other variables. Also called a Key Code.

Standard Mail: A class of mail formerly known as “Third Class” or “Bulk Mail”.

Targeted Mailing: A mailing that targets a group of prospects with like-characteristics, either demographic or psychographic. A more expensive type of bulk mailing than a saturated mailing (see above).

Traffic Builder: A direct mail piece designed to attract recipients to the mailers place of business.

Universe: Total number of individuals or businesses that might be included in a mailing list, or all those who meet a set of specifications.

Variable Imaging: Personalization done on a digital press.

White Mail: Mail from customers with no purchase order form or other identification, including complaints, commendations, referrals, orders, checks or cash.

ZIP+4 or 9-Digit ZIP Code: Extension of the five-digit ZIP coded providing the U.S. Postal Service with even more precise destination information to facilitate mail handling.  The nine-digit ZIP is based on a system of grids.  The first two digits of the added four digits are a sector; the last two digits are a segment within a sector.  The USPS intends the nine-digit ZIP to be used by business mailers, not individuals, and offers a small discount for its use.  Another benefit provided by the nine-digit ZIP is that it can serve as a basis for demographic and psychographic selections from mailing lists.

 


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