What is a penetration report and why they are so important to developing successful direct marketing campaigns.

What is a penetration report?

Hear from Spectrum's VP Corey Shaw

The Importance Penetration Reports

What is a Penetration Report? And why are they so critical to developing direct marketing campaigns?

When we hear from clients that they want to send saturation mail, we always explain how Spectrum’s targeted saturation mail is a smarter direction to take. When we discuss penetration reports, particularly with new clients, many don’t understand them or know their true value.

So, what is a penetration report? And why they are so critical to developing successful direct marketing campaigns?

We spoke with Senior VP Corey Shaw about this question and here’s what he had to say.

What is a Penetration Report?

Penetration report is an analysis of your customer list vs the USPS mailing routes. More effectively target your mailing audience using Spectrum's smart targeting services.

A penetration report gives you the ability to target direct mailing efforts further than zip code mailing. Targeting areas where your products and services are more likely used, ensuring your marketing budget is used effectively. Penetration reports allow us to target the neighbors of your customers, those that are more likely to be interested after hearing about you.

Defining Your Market Penetration

Market penetration is the measure of how much a product or service is used by customers compared to the total estimated market for that product

For example, if there are 300 million people in a country and 65 million own cell phones, the market penetration of cell phones would be approximately 22%. In theory, there are still 235 million more potential customers for cell phones, or 78% of the population remains untapped. The penetration numbers might indicate the potential for growth for cell phone makers.

Penetration reports and analysis help organizations define their target market, and with direct mail marketing, defines best areas to target.

Target Neighbors, Not Areas

Imagine this; you wake up on a nice Saturday morning, sun is out, it’s a beautiful day. You are looking outside and you notice your neighbor has brand new vinyl siding. It looks amazing! It's so much better looking than the old siding. After speaking with your neighbor, you begin thinking about your own house and that it could use the same upgrade. His new siding provides a whole new line of features that you don’t have on yours. With that thought in your head, you check your mail and find an offer for that exact same siding. Is it a sign? Is it time to upgrade your siding? You get the point. Relevant communication at the right time to the right prospects deliver the best results.

With penetration reports, your direct mail marketing can target more specific areas, focusing on potential customers and not just blanket mailing.  Targeting just a radius of your location can result in wasted mailing and spend.  With targeted saturation penetration you can rest assured that each piece of mail sent out will go to someone who is more likely interested in your company and what you have to offer.

The Benefits

Penetration report is an analysis of your customer list vs the USPS mailing routes.

  1. When you mail a straight radius to your business, you may be missing opportunity.
  2. We use a targeted approach to avoid obstructions and incorrect demographics.
  3. We use a targeted approach to saturation mail which is a much more efficient strategy – eliminate wasted mail delivery and spend.
  4. We look at your neighborhoods with the highest penetration of your customers and target prospects who are neighboring your customers.
  5. We target just consumers, not businesses that may be in a traditional saturation mailing – resulting in less wasted spend.
  6. We focus on the most successful neighborhoods
  7. Identify your customers and prospects and develop campaigns to target each effectively.

Improved ROI

Discover the Secrets to Direct Mail Audience Targeting

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