Tip:
Highlight text to annotate it
X
Response-rate is not the thing that you want to be looking at. You want to
think, 'What return on investment do I want?' That depends on so many
things. If you have a product that you sell, that is a couple thousand
dollars, you need less responses to make a lot more money than somebody who
sells something for $30 or $50. If you sell something for $50, but that
customer reorders from you over and over again, then you have a lifetime
value of a customer of $5,000.
You have to understand what the formula is. How many customers do you need
to make X-amount of money right up front, and what is that going to be over
the course of a lifetime? How much money will you make off of that one
mailing, overall? You need to look at your return on your investment, not
necessarily your response rate.
There are certain industries that will get higher response rates. Those
industries are niche industries, like a chess school or a swimming class
for infants, something that is very niche and not a million competitors. If
you are a dentist or a chiropractor, there are other dentists and
chiropractors marketing at the same time, using the same mediums that you
are using, so your response rate is going to be a little bit lower. Again,
if your website is fantastic and really engages the visitor, you will get
more responses. If you have a good campaign to collect identities of people
going to your website, you will get more responses.
It is really, 'The ball is in your court,' on that. It depends on your
product and it depends on how many competitors you have. You really want to
look at, 'How much money am I going to make?'