Business Ideas Create Your Own Economy Editors Notes

Direct Marketing Response Rates

I attended a seminar not long ago where the presenter said he got a four-percent response rate from his online marketing campaigns. That means, if he sent out 10,000 emails, he got a return of four-hundred responses. Nice. I asked how many converted into sales and really didn’t get an answer (conservatively it would be about ten percent, or 40 sales.)
To get a response rate of four-percent, the marketing material has to be compelling. It has to convince the reader that they really NEED the product. In fact, it’s a MUST HAVE. Their business or personal life will go down in ruins without that product.
Most direct marketing campaigns produce a one-percent return and a ten-percent conversion rate, even on the Internet. To get more than one-percent, the market has to perceive a real need for the product. It’s a matter of timing. Hit the market at the right time, and it’s possible to get a two and even three-percent return. Rare, but possible.
If someone tells you they can get a four-percent return out of the box, be skeptical. Err on the side of caution. A one-percent response represents a break-even point on the cost of the campaign. What really matters is the conversion rate.
Copyright © 2018, Moody Publishing Co., LLC

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