Estimating Response Rates for Relevant Marketing Campaigns

Many companies know that personalizing their direct mail will increase response rates and customer loyalty, but have no way to estimate to what extent.

During the Q&A session of a recent digital printing seminar discussing personalized direct mail, a participant asked if companies experienced an average response rate increase when they switched from static to personalized direct mail.

According to James Mekis, the Director of Technology for PODI, companies are experiencing a 50% increase, or doubling response rates when they make the switch. PODI’s own data indicates that (for a relevant, personalized campaign) typical response rates range from over 3% for direct sale to 13% for loyalty campaigns.

But it takes more than personalized marketing to increase response rates and ROI. You need a relevant offer sent to a targeted mailing list. What is a “relevant offer”? According to a 2007 W. Caslon and Company report titled, “Response Rate Report: Benchmark Information for Relevant Marketing Programs” a relevant marketing piece is defined as:

“…a message about a product that the recipient needs, delivered when the recipient is ready to receive it.”

According to the Direct Marketing Association, static mailers to an existing customer database generate a 1.75% response rate on average. The next time you send out a direct mail piece to your database, why not send half static pieces and the other half personalized offers. This is an excellent way to see how one little change in your direct mail can greatly impact your bottom line.

According to PODI, “If you put together a great concept, a great design, and a great list, and make the offer really relevant, response rates can go through the roof.” Variable Thinking can help you achieve those results. Join our free strategic marketing webinar every Wednesday from 2:00 -2:45 p.m. CDT.

To register for this, or future webinar’s visit http://www.variablethinking.com/webinar.aspx.

All participants receive a free marketing toolkit which includes lead generation workbooks, personalized marketing PDF books, and other valuable resources for free.

Attend the webinar and learn more about how Variable Thinking can help you achieve:

• Higher response rates
• Greater satisfaction rates
• Faster response time
• Higher average order value
• Higher participation rates
• Higher conversion rates
• Reduced customer service complaints
• Greater understanding of product and service benefits
• Increased sales or donations

What is Relationship Marketing

Studies show that improving relations with existing customers costs about 90% less than acquiring new customers!

Relationship marketing, as the name implies, is a strategy for growing, improving and maintaining relationships with customers. The objective of relationship marketing is to build long-term relationships with existing customers, or those most likely to purchase your goods and services, and then maximize their lifetime value. In addition to increased sales revenue, companies benefit from word-of-mouth advertising and lower administrative costs. Relationship marketing focuses on the unique characteristics, lifestyles, and needs of customers and tailors the marketing campaign based on how their product or service can meet those criteria. This personalized message is communicated over several channels and encompasses not only advertising and marketing, but sales, customer service, and any touch point between the customer and you.

Relationship marketing is not a one-time service, but a long-term marketing strategy. Variable Thinking is the only long-term business partner that can provide the entire relationship marketing solution, from database marketing to response tracking, under one roof.