How to Use the 3 Most Common Direct Marketing Measurements to Increase Your Profits!
John Wanamaker, a 19th century entrepreneur, once famously made the statement, "I know that half of my advertising is wasted, I just don't know which half." Fortunately for today's marketers, there are scientific ways to determine which half is wasted, and which half is not, through the use of common direct marketing measurements.
Advertising is, and has always been, part art and part science. With direct marketing, the science part takes center stage as there are common direct marketing measurements that can be utilized to verify the results of the advertising.
With the increased popularity of direct marketing, the success of advertising can be measured through a variety of common direct marketing methods such as cost per acquisition, cost per piece, and response rate.
Before continuing in describing these common direct marketing measurements in detail, it is beneficial to review one of the direct marketing tools needed to determine the success of the mailing. The most important direct marketing tool is the response mechanism. This is how you can gauge the success, or lack of success, of a direct mail campaign. This is the mechanism by which the prospect will use to respond - it may be a postcard to request more information, an 800 number to call, or a website address to place an order. You can than utilize this response to determine the success of the direct mailing.
The first of the most common direct marketing measurements is the cost per acquisition. The cost per acquisition can be determined by taking the total cost of the mailing and dividing it by the number of responses. For example, let's say the total cost of a mailing is $2,000 and 20 people respond. The cost per acquisition is $100. This is an important tool to find out if the cost to obtain a new customer is in line with the profits that you will receive.
The second of the most common direct marketing measurements is the cost per piece. To find the cost per piece, you would take the total cost of the mailing and divide it by the total number of pieces sent. For example, if the total cost of the mailing was $4,500 and you sent 2000 direct mail pieces, the cost per piece would be $2.25. This is an important figure to keep in mind, because by lowering the cost per piece (as long as the number of responses stays the same), you can lower the cost per acquisition.
The third of the most common direct marketing measurements is the response rate. The response rate can be calculated by taking the number of people that responded and dividing it by the number of people that were sent the direct mail package. For example, if 2000 people were mailed a direct mail package and 20 people responded, the response rate would be 1%. This is an important tool that you can utilize to forecast the success of future mailings.
By using all three of these common direct marketing measurements, you can finally determine which half of your marketing is working, and which half is not.
Wanna Learn the Secret of Creating Passive Income
Do I Need Raised Letter or Full Color Business Cards?
If you've been searching around for business cards that will best represent the image you want to portray for your business, then you've no doubt encountered many options. The Big Two, as I like to think of them, are "Raised Letter" and "Full Color."
How to Create Ads that Sell with Little Effort
One of the main problems people find with marketing, is the actual selling. How can you create ads which sell?
The Secrets of High Money Classified Ads
When used effectively, classified ads can be one of the quickest and most inexpensive ways to increase your sales. A well written classified ad can generate thousands in sales, yet could cost you pennies to write and run.
How To Get Big Sponsorship Money for Your Band, Tour, Event or Production
Touring is a bands greatest opportunity for success. But, touring can be very expensive. Getting your tour, band or event sponsored is critical to your success. Sponsorship can off-set production, travel, promotion and virtually any of your expense. The right sponsor can also significantly augment your advertising, publicity and promotions. But, getting sponsorship participation can take a lot of effort and commitment on your part. You will need to prove to potential sponsors that your opportunity will deliver a good return on investment for them.
Top Jingle Companies: What to Look For, What to Expect
The internet offers you the opportunity to seek out jingle companies and listen to their jingle samples online. Your success depends upon a thorough evaluation of as many companies as possible. You don't need to be a musician to know what you like.
Create Your Own Business Cards, Part 2
This is the second part of creating your own business card. If you missed the first one, let me know: mailto:email@example.com
Moving Message Board
Moving message boards are used in the areas where continuous announcements, or other information are need to be displayed in to either indoor or outdoor. Used most widely in churches, schools, airports, other transport stations, banks, production and administration department of organization as marquee information billboards.
Create Your Own Business Cards, Part 1
In this lesson, we will create a business card, using Microsoft Word. I created a new template for my business card. It can be viewed at: http://janes-place.com/bus_card.htm
Get Better Results from Your Advertising with a Disruptor
When you spend money on an advertisement you want to get the best return possible. To do that you need to get people to STOP and LOOK at your ad.
Consider These Pressing Facts Before You Renew Your Yellow Page Ad
Your Yellow Page Ad Deserves More than 10 Minutes of Thought a Year
Imprinted Promotional Items ? Their Many Marketing Applications
There are many uses for promotional items. This means that they are just not used as freebies for a grand opening special. Knowing all the uses for these nifty items, often called "swag," will open up many opportunities for your place of business.
7 Unique Ways To Get FREE Advertising
1. Give Testimonials When you purchase a product or service and it exceeds your expectations e-mail the business a testimonial. Tell them in the testimonial the benefits you got from the product or service. Give them permission to publish the testimonial on the web site if they include your sig file at the end.
More Cheap Tricks for Promoting Your Business
In a recent article, I shared five of my top 10 favorite tricks for promoting your business without spending much (or any) money. Several readers wrote and said they enjoyed the first five tips, so I'm hoping the next five will be just as helpful.
Offline Advertising Tips
Since most of us are always online and our business is online, we often forget the importance of advertising our business offline. Print advertising can be one of the best forms of advertising for your buck. Why? Well, with print advertising it's in the form of hard copy and is always in view of your potential customers. Thats just one small example. Think about your daily newspaper...try hiding that in your email box! The following are just a few hints and ideas for you to consider before you place an offline advertising campaign.
What Do Your Ads Say?
Make a list of everything you think should be included at one time or another, in one of your ad, be it radio, newspaper or Little Jimmie's class play program.
Just What Are Consumers Thinking?
Research would indicate that consumers don't know what they're thinking. According to an article written by Jack Shimell (2002) for Quirk's Marketing Research Review, Consumers make their decisions and react to advertising based more on unconscious emotional processes than on conscious rational processes.
Attention-Grabbing Fixes that Make Your Yellow Page Ad Leap Off the Page
Stand Out in Ways that Matter to Directory Users A Yellow Page directory presents a difficult challenge for advertisers. All the competitors are packed together, within the space of a few pages. Each ad within the directory category screams "Notice me!" so insistently, they blend into an muffled chorus. It's not easy for one to stand out with a clear, distinctive voice - like a soloist above the choir. That only happens when the business is clear about expressing its unique "song," and understands what buyers most want to hear.
A correspondent to AdBriefing, my monthly newsletter, has posed a very sticky question. How, she asks, can you tell whether a headline you have written is a good one?or not? What she means by this, I imagine, is whether the headline will actually help to make sales, rather than just act as a passing amusement to its readers.
Hit Them With Benefits
More about advertising from BIG Mike McDaniel
Adding Art to Business Spaces
Larger companies have learned that collecting art adds something special to its overall corporate image. An art collection may include art on display in waiting, or general areas. Larger collections may focus on education programs for the employees of the company and partnerships with area museums or art spaces.
|home | site map|