Theres More To Marketing Roi Return On Investment Than Meets The Eye

Theres More To Marketing Roi Return On Investment Than Meets The Eye



There’s More to​ Marketing ROI (Return on​ Investment) than Meets the​ Eye
All too often people look at​ marketing ROI in​ terms of​ response rate: in​ other words,​ I​ sent out 10,​000 pieces of​ direct mail and only got 39 responses which is​ terrible .​
This is​ wrong think.

When it​ comes to​ marketing ROI,​ you​ have to​ realize that the​ term means Return on​ Investment and the​ return is​ measured in​ dollars (or your local currency) .​
Let’s say you​ spend $2,​000 to​ get out a​ bulk mailing of​ 5,​000 pieces and you​ get 10 calls as​ a​ result .​
Doesn’t look like much .​
But of​ these 10 calls you​ close 6 and get immediate sales of​ $12,​000 .​
That’s marketing ROI! And that’s not even taking into account the​ future sales to​ those 6 new customers .​
It could add up to​ hundreds of​ thousands of​ dollars .​
The same simple mathematics apply to​ any other marketing efforts: radio ads,​ press releases or​ articles in​ magazines,​ print ads,​ yellow pages,​ web site,​ etc .​
Obviously you​ need to​ keep track of​ response from each marketing campaign you​ do so that you​ can weed out unsuccessful campaigns and strengthen successful ones .​
Case in​ point:
Jeff Lee,​ CFO of​ a​ very successful consulting company,​ Measurable Solutions,​ has adopted a​ successful small business marketing strategy based on​ direct mail marketing .​
Key elements are mailing out a​ newspaper and full color postcards .​
The design is​ done in​ house and the​ printing and mailing is​ done by a​ specialized postcard printing company .​
In his own words.. .​
We get our best response from mailing out a​ newspaper and back it​ up with postcards .​
Depends on​ the​ postcards .​
Some postcards have pulled better than others .​
The professionalism of​ the​ postcards is​ something that is​ effective: it​ gets attention,​ it​ keeps the​ image that we want to​ keep,​ it​ creates the​ reach,​ it​ creates the​ response and keeps our leads in​ a​ very high range .​
We probably average around 7,​500 post cards per week .​
Out of​ 7,​500 post cards we’ll get in​ an​ average of​ 15-20 leads .​
Of the​ 15-20 leads at​ least a​ third of​ them come to​ our introductory seminar .​
So say 5 or​ 7 people show up and they pay $1,​700 a​ piece .​
Off of​ that we close a​ further $30-40,​000 for services.

The money we have put into the​ postcards is​ like a​ drop in​ a​ bucket compared to​ what we get back .​
We know that the​ more promotion we send out,​ the​ more return we’re going to​ get .​
It always works .​
That is​ excellent marketing ROI .​
Measurable Solutions spend about $2,​275 for 7,​500 full color post cards .​
That includes printing,​ postage,​ mailing (including the​ mailing list) .​
From that they get between $8,​500 and $11,​900 in​ immediate response for an​ introductory seminar and an​ additional $30-40,​000 follow-up sales .​
Spend $2,​275,​ earn $40-50,​000 .​
You don’t need to​ have majored in​ advanced math and rocket science to​ work that one out: that is​ what is​ meant by marketing ROI!
Results of​ direct mail marketing vary from business to​ business but the​ principle holds and always works: if​ you​ send out enough promotion,​ you​ will make sales and maximize your marketing ROI .​
Don’t worry about response rate if​ your marketing ROI is​ high.




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