A mailing list of potential new customers — purchased, rented, or compiled from public sources.
Definition
A prospect list is a mailing list of people who are not yet your customers. Prospect lists are typically purchased or rented from list brokers, compiled from public records, or built using demographic and geographic targeting. Common selection criteria include ZIP code, income level, homeownership, age, household composition, and behavioral indicators.
Why it matters
Prospect lists are how local businesses acquire new customers at scale. While response rates are lower than house lists (1–2% vs 5–9%), prospect lists let you reach people who don't yet know your business exists. The economics work when customer lifetime value significantly exceeds acquisition cost.
Example
An HVAC contractor buys a list of 5,000 homeowners in surrounding ZIP codes whose homes were built before 1995 (older HVAC systems likely needing replacement). At a 1.5% response rate, 75 homeowners call for a quote, and at a 30% close rate, 22 become customers — averaging $8,000 per install.
Related terms
- House List — A mailing list of your existing or past customers, built and owned by your business.
- Direct Mail Response Rate — The percentage of mail recipients who take the desired action — call, visit, scan a QR ...
- EDDM — USPS's saturation mail program — postcards sent to every address on a chosen carrier ro...
- Customer Lifetime Value — The total revenue a typical customer generates over the entire time they remain a custo...
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