This package could cost you $1.50 per piece. Mailing costs are an important consideration when measuring your direct mail results.Ĭonsider, for example, a mailing package that includes multiple components, all printed in four color, fully personalized and mailed first class. The numbers should speak for themselves.Īlthough campaign 2 produces half the initial response rate, the lead quality was significantly higher resulting in a much higher conversion rate. The other produces a 1% response rate, but 30% convert to customers. You need to think of both the quantity and quality of the response.Ĭonsider, for example, these two mailings: One produces a 2% response rate, but that only 5% of the responses are able to convert to customers. That should be another part of the equation. The response rate tells you how many people responded to your mailing, but it doesn’t tell you anything about response quality.įor example, in lead generation, you can generate of leads with a free offer, but how many of those leads will convert into customers? It’s not unheard of to see response rates as low as 1/10 of 1% (.001). ![]() In order generation, you are expecting an actual order in the form of a payment or an agreement to pay.Įven if the price is low (or discounted or spread out in payments over time), price is a barrier to high response rates. This is the difference between order generation and lead generation. If instead of using a free offer, you use a price offer, you can expect to see a lower response rate – often fractions of 1 per cent. This is how catalog and other mail order businesses make their money – by repeat mailings to their house list.Ģ. In direct marketing, they say “the profit is in the list” – and this is what they mean. The people on your house list already know you and have already demonstrated (from their previous response) some interest in your topic. If instead of mailing to an outside list, you mail to your house list of previous responders, you can expect a higher response rate – possibly several times higher than 2%. However, there are applications and situations in which 2% (or 1%) should not be part of your projections. In trying to project response rates for a business plan, 2% could be considered an average response rate (although 1% is safer and more realistic). Or you could see a response as 3-5% – which is very unlikely. You could see a response rate of 1% or lower – which is very likely. Of course, even if these two factors are in place, remember 2% is just the average. These leads are then considered potential customers.īecause these offers are free, you can expect more people to respond. You then offer the report to your target audience – and those people who are interested in the topic will respond. You create a free report or white paper on a topic closely related to what you sell. ![]() You are a stranger to them so you have an uphill battle when it comes to generating a response.Ģ. you are using a free offer than requires little commitment on the part of your audience.įree offers are central to all lead generation campaigns. The people on outside mailing lists have no relationship with you. ![]() It’s important to understand the applications and situations before you try to predict your response rate.Ī 2% response rate is a good approximation if:ġ. you are mailing to an outside mailing list (meaning any list that is not your own) This is true for certain applications and situations, but not for all. You often hear about 2% being the average response rate.
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