Friday, May 05, 2006

Response Rates

Q: What kind of response can I expect from my mailing?

A: This is probably the most frequently asked question, and it’s one to which there is no precise answer.

I’ve worked on mailings that came close to a zero response rate (a financial services d/m seminar). I’ve also worked on ones that got response rates of 10% (a business-to-business self-mailer), 25% (a sweepstake), and 30% (a multi-media information offer). I’ve even gotten as high as 60% (premium in the envelope) on a highly specialized and targetted renewal offer.

But the truth is every mailing is a bit of a crapshoot; success depends on those old familiar five key elements: list, offer, copy, graphics and timing.

Mass mailers — Publishers' Clearing House, for instance — thrive on response rates below 1%. Business mailers generally need at least 1% - 2% just to break even. That’s why it’s so important for all mailers to go through the simple arithmetic necessary to calculate their break-even.

For an excellent short summary of break even calculations, I recommend William A. Cohen's Building A Mail Order Business, (Chapter 6, 2nd Edition, John Wiley & Sons, New York).

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