FE Direct Mail Response Rate

[HoosierDaddy]

I'll tell you a secret: You ever wonder why mail houses want the returns coming back to them? So you don't see how many "bad" addresses you just paid them to mail to.

You are right on!!!

 

[Newby]

"I'll tell you a secret: You ever wonder why mail houses want the returns coming back to them? So you don't see how many "bad" addresses you just paid them to mail to. That and they have them pre-printed so it keeps cost down, but how much would it cost to have the return address printed at the time of mailing... maybe $30-50 per 1000 mailed."

I'll tell you about my recent experience with a popular direct mail house that is highly thought of on this forum.

I did a mailer that had a business reply envelope. I had it set up to go to my own business mail address NOT the mail company's.

First drop went great.

2nd drop I only got 3-returns and they were ALL three in plain hand addressed envelopes with stamps on them. I call the mail house and told them they must have forgot to put the business reply envelopes in the mailing. After I got a little bit of BS from them, they agreed that must have happened and agreed to make good on that drop.

Drop 3- again with no reply envelopes.

Drop 4 went good.

Drop 5 again no reply envelopes.

At week 6 I get a phone call from an advertising agency in a large metro area (thankfully several hours away from my customer base) and he tells me he uses the same mail house and they screwed up his mailing. He did a fund raiser mailing for a large college and dropped 15,000 mailers...but they accidently had MY business reply envelopes in them.

The mail house DID make good on everything but killed my mail program for about 2 months. I'm not going to bash them by putting their name on here but these are the kind of things that can happen if your mail goes back to the mail house and you would never even know about it.

 

[G.Gordon]

2. What is a good rule of thumb goal on ROI for $$ spent on direct mail advertising? (i.e. if it's .30 per piece in mail and it generates a 1% response, is $30 per prospect worth the cost of a direct mailer?)

MarketingStudy

Not sure what you're asking.

A good mail program consistently made me 400% ROI. IOW if I mailed 1000 for $400 I'd need to make $1,600 min. to repeat the process.

 

[HoosierDaddy]

Anyone test further any offers to drive up the response rates, I see the "FREE Memorial Guide Book" offer listed below, but are there any other "incentives" that anyone has tested to get a stronger response?

How about free tickets to "The Price is Right" !!! I love running appointments and going from house to house and all my seniors seem to be watching the same shows...

I never miss the "Show-Case Showdown" on days I am running appointments...

 

[MarketingStudy]

Not sure what you're asking.

A good mail program consistently made me 400% ROI. IOW if I mailed 1000 for $400 I'd need to make $1,600 min. to repeat the process.

Gordon - thanks for the insight, my question is I'm still unclear on how much revenue an agent would expect to earn per client. I'm sure it varies I would imagine, but in order to generate that $1600 in revenue in your example, how many clients on average would it take to generate it (i.e. a 1% response on 1000 mailed would be 10 clients @ $XXX in revenue per client - is that number $160 in your example? Or a 0.4% response @ $400 per client?) Thanks for the help.

 

[Justin Bilyj]

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VistaPrint - Business Cards - Full Color Printing - Digital Printing Company | VistaPrint

 

[G.Gordon]

Gordon - thanks for the insight, my question is I'm still unclear on how much revenue an agent would expect to earn per client. I'm sure it varies I would imagine, but in order to generate that $1600 in revenue in your example, how many clients on average would it take to generate it (i.e. a 1% response on 1000 mailed would be 10 clients @ in revenue per client - is that number $160 in your example? Or a 0.4% response @ $400 per client?) Thanks for the help.

A 1% return gets you 10 leads... NOT 10 clients. Say you close sales on 25% or 2-3 of those consistently. You'd have to make enough to do it again, pay bills, make it worth your time. IMO... if a mail campaign got me 1% more than one time I'd cut it loose. If you don't pull 2% or better you'll never make it.

 

[Mega producer]

I was about to order 6000 mail pieces, to be dropped at a rate of 2000 per week from a company called L**d A****a. They agreed to use my BRM permit so that the leads come directly to me. When I requested to have my return address on the envelope, so that I can track the rate of undeliverable mail, they said the envelopes were pre-printed and could not accomodate me. They also use the same piece everyone uses.

Is there any lead company out there that would print my return address on the envelope, that uses a mailing other than the tired $255 SS benefit for about $350 per thousand

 

[MarketingStudy]

A 1% return gets you 10 leads... NOT 10 clients. Say you close sales on 25% or 2-3 of those consistently. You'd have to make enough to do it again, pay bills, make it worth your time. IMO... if a mail campaign got me 1% more than one time I'd cut it loose. If you don't pull 2% or better you'll never make it.

Capice - thanks Gordon!!!