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Marketing Post Cards and Marketing Strategies information: Some direct marketing experts believe that a Web response form respondent could actually be a higher quality prospect than someone who responds via mail or fax. That is because this individual took the time to go to the URL and fill out a form on the Web, which takes some effort. If this is true, then using the Internet as a response path could potentially increase the number of qualified leads even more than this example indicates.You can get on the Net very fast, and you can make modifications to programs just as fast. That means you can see the results of your efforts very quickly as well. Although the Internet can be proven to enhance the traditional media used in your lead generation programs, it is probably premature to assume that the Internet can replace direct mail or telemarketing entirely. The Internet is not yet a precision medium for targeting. Ask yourself how any online environment can play a role in facilitating that process. How can you use the Internet to generate leads in the first place? How can the Internet support and enhance your use of traditional direct marketing media? The revenue from the smaller mailing is more than double the revenue from the larger mailing.
What happened? How did we manage to mail less than half the quantity, spend about the same amount of money, get the same response rate ...and yet more than triple the ROI?Assuming both mailings generate a 2 percent response, you will generate 400 responses from the 20,000-piece mailing vs. 1,000 responses from the 50,000-piece mailing. The cost per response is again more than double for the 20,000-piece mailing. Uh-oh...this is not looking good for the smaller quantity mailing. Now examine the rest of the chart and compare the ROI from the two mailings: Notice that the cost per qualified lead for the 20,000-piece mailing is $375 vs. $750 for the 50,000-piece mailing. I have seen this example work over and over again with any marketing organization that generates leads for a sales organization. |
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