With more legislation to protect consumers from potential fraud being drafted at the state and federal levels, list owners and professionals need to be more cautious before accepting work from direct marketers. In addition to helping direct marketers find the right people to send offers to, list brokers and managers should also look out for signs of trouble.

According to Chicca D'Agostino, president of Hackensack, NJ-based list management firm Focus USA, that means the information direct marketers include in their copy is as important as what they don't put in their copy.

"The consumer does not understand what target marketing is all about, so you need to put your consumer hat on when you're deciding to work with a direct marketer," D'Agostino said during a session this month at DMA's Directo Days in New York. "The marketer should not reveal information it knows about the consumer in its direct offering, because it will raise a red flag for the consumer."

D'Agostino said the wisest thing for list managers to do is inspect the direct mailer's piece for red flags and gray areas before agreeing to rent out the names to the mailer. The red flags would be any sort of e-mail subject line or print headline that offers a promise that can be considered too good to be true. The gray areas would be anything that could possibly reveal personal information about the person the piece is being sent to.

(Entire article)

Threats to the List Industry

March 2006
Target Marketing

Apart from legislation, the compiled industry has another issue that is threatening it… and that is the proliferation of companies that are reselling data, everything from compiled to survey to transactional to modeled. Ten years ago, there were a handful of companies doing this. Today there are probably 30-40. This creates two problems: 1) rather than being the premium that it should be, data are becoming a commodity and 2) in order to "get the business", pricing becomes the competitive issue.

Some companies multi-source and use sophisticated segmentation techniques designed to enhance response, but this adds to the cost of data. So, when cost is the bottom line, mailers may opt for the lowest cost. Over the years, many mailers who otherwise "would not touch" a compiled file, have begun to test the waters. The number of demographic selects that are available is a strong selling feature and the widespread low pricing is compelling. However, when the cheaper lists don't perform, it casts a shadow over the entire compiled industry….and we find ourselves back to Square 1 again with mailers who say that compiled files don't work.

FOCUS ON: PRIVACY

By PAUL BARBAGALLO - November 2005
Fundraising Success Magazine

Not to Be Indelicate, but ... Is it possible to know too much about your donors? And what do you do with what you know?

More than 50 million consumers have had their personal data compromised this year, a statistic grim enough to elicit spasms of paranoia in donors' hearts about identity theft, data security and privacy. But, in reality, there have been few cases of privacy infringement reported in the nonprofit world — not enough to spawn a skittish donor pool.

It does, however, raise two important questions for nonprofit fundraisers. First, with the explosive growth in data collection and compilation, to what extent is it moral, ethical or legal to mine data on potential donors? And secondly, what proactive measures can be taken to safeguard donor privacy?

...Plug the holes
Chicca D'Agostino, president of Focus USA, a Hackensack, N.J.-based list firm that maintains myriad compiled files on donors, likens her job to hurtling down a highway in a big rig carrying precious cargo.

"This is how all fundraisers should view their donor files," she says. "Your database might contain gift amounts or charitable-trust information and should be seen not just as a collection of names and addresses, but rather as a file of precious information about individuals that must be protected at all costs."

(Entire article)

"What You Need to Know to be Effective in the Profitable Hispanic Market... Powerful Insights and Strategies"

The New England Direct Marketing Association and The DMA Directo: Council for Hispanic Marketing
November 30, 2005
NEDMA

Session 4 - What You Should Know About Hispanic Lists and Data
                   Lori Collins, Corporate Vice President, Focus USA

With so many Hispanic lists available on the market how do marketers know exactly what they're getting? Find out the major sources of Hispanic lists; the definitions of Spanish Speaking vs. Hispanic; and what questions to ask list managers and compilers to ensure your list meets your needs.

Lori Collins, Corporate Vice President, Focus USA

Lori has been with Focus USA, a leading list management and analytical solutions company for over 5 years. Focus USA specializes in Consumer, Business and Ethnic data. She oversees the National Sales Team and is also responsible for identifying and implementing new and timely data products and services for Focus USA's clients. Lori is currently the Vice Chair of the DMA's Directo Council for Hispanic Marketing and a member of the List and Database Council.

(Register for event at NEDMA)

Privacy/Usage Issues in List Rental

By Chicca D'Agostino, President, Focus USA - Nov 2005
Fundraising Success Magazine

Fundraisers -- or any list owner, for that matter -- who rent lists automatically assume responsibility for how those names ultimately will be used by the list renter. Unless they take precautionary measures, fundraisers could be held responsible by the FTC if the names are used in a way that is in violation of state and federal laws. A list rental agreement that stipulates the terms of list usage can be employed to provide protection. It is important for fundraisers to request a copy of the mailing piece or telemarketing script to determine that the offer is not illegal, fraudulent, deceptive, privacy invasive or pornographic. This is another precautionary step. The Direct Marketing Association's Web site contains guidelines for this purpose.

(Entire article)

Dying for Change

By: Doug Sacks, Columnist, Sept 2005
Direct Marketing International

THE LIST INDUSTRY is going through turbulent changes. Yet direct mail still drives direct marketing here and abroad. Will this continue, or is the list industry dying? If so, "Who is killing the list industry? That was a session topic at last month's List Vision Day -- an annual one-day conference sponsored by The (USA) DMA's List Council.

In years past, List Vision has been a combination of Database Marketing 101 and a whinging contest by list brokers who are finding the going getting tougher but are never willing to make substantive changes. This year presented a much better mix of sessions and topics and a better attitude. Less complaining and more practical information. To counter the criticism that the sessions were too basic and to attract higher-level people to the conference, an executive summit was added for senior level list people.

(Entire article)

Don't Do It! Suicide Prevention for the List Industry

By: Kristen Bremner, Senior Editor, Aug 2005
DMNEWS

NEW YORK -- Somebody stop the list industry before it does itself in!

With a title like "Suicide Prevention: Let's Not Kill the List Industry," few marketers could resist a panel discussion on privacy at yesterday's Direct Marketing Association List Vision 2005 conference at the Marriott Marquis.

"We list people are afraid," said Harriet Heyman, vice president and senior strategic consultant at Harte-Hanks Direct Marketing and chair of the DMA Ethics Committee. "Our universes are shrinking, consumers are opting out, public data is being threatened -- but if we alleviate consumer fears, ours will go away, too."

This is where the list industry needs to be more proactive, and one professional said it's simply a matter of returning to the roots of the list business.

"We are taking an ultra-conservative approach," said Stacey Girt, senior vice president of MKTG Services, a CBC Innovis company.

(Entire article)

Live From List Vision 2005: List Industry Regulation Increasing

By: Jim Emerson, Aug 2005
Direct Magazine

Self-regulation through good business practices and compliance with existing list regulations are the best mitigation defense the list industry against more drastic direct marketing data restrictions, according to speakers at the List Vision 2005 conference in New York.

Federal legislation appears imminent that would authorize the Federal Trade Commission to write list industry regulations, a process likely to take another year to complete after approval of such a bill. Several variations of bills to regulate data brokerage are being discussed in Congress, although none have been formerly proposed, yet.

"We'll see a bill by the end of this year. There's no doubt about it. Several data broker laws are in the hopper," said Harriet Heyman, vice president and senior strategic consultant at Harte-Hanks Direct Marketing. Heyman who is also the chairwoman of the Direct Marketing Association's ethnics committee led a session on privacy issues at List Vision. The session was titled "Suicide Prevention: Let's Not Kill the List Industry."

(Entire article)

LIST ROUNDTABLE

Edited by Lisa Yorgey Lester - Managing Editor Target Marketing, May 2005
Target Marketing

What can list professionals do now to prevent future legislation of the list industry?

Chicca Agostino, president, Focus USA

Given recent developments, it appears unlikely that we will be able to prevent future legislation. The best we can do is try to mitigate it. Apart from data security, another major issue is how we treat consumers via our advertising messages. All of us --brokers, managers and list owners --need to screen advertising offers. If you feel it invades a consumer's privacy, reveals specific details about a family, is deceptive, or is not in compliance with GLB, FACTA and other laws—-try to have the copy corrected ... or reject it....

(Entire article)

Getting Your Wish List - List firms deliver focus in fuzzy times

By: Doug McPherson, Oct 2004
Response Magazine

If you're seeing ad costs rise and response rates fall, list managers say welcome to reality. They also say they can help in times like these.

"Rising prices of general advertising and falling response rates are forcing marketers to reevaluate how they reach and stimulate consumers to buy from them and lists are a clear option," says Donald R. Ryan, a senior partner with iKnowtion, a marketing consulting firm in Burlington, Mass.

The way Ryan sees it, lists give marketers two proven marketing advantages: better targeting and multiple contacts with prospective customers...

(Entire article at Response Magazine.com)