IMO the conversion rate is low; however it can most definitely build up a business. My company recently scored a $130,000 client through direct marketing.
In a sense it is like email marketing [at least when you use a list]. The conversion rates are low, but email is still a powerful channel to generate revenue opportunities. I think the same applies for mail advertising. It may take a lot of sends but, to the very least, it can work as brand recognition or, at it's best, sales for your company.
Will I be able to get a 2% conversion rate from this? Can I get more details of your direct mail advertising campaign. Did you do it by yourself or did you outsource company for it. I have no provision to do it by myself. I met a direct mail advertising company in Toronto, Troi mail. Do you know about them? How good they are?
According to Direct Mail News, in 2012 the average response rate for direct mail was 4.4%. As for your conversion rate, I think it will depend on your business model. For instance, my company's model is business-to-business (b2b) and most of our deals take up to a year to work out and they typically are 6 figure deals. So, for us we did not technically get a conversion until perhaps 6 months of doing direct mail campaigns.
We did not use another company. We created the letters, purchased the envelopes, and printed the content ourselves.
I've never heard of Troi mail. Don't think I can be of much help there.
However, my advice is this: give it a try. You may have to stick with it for a few months though to actually see results. If you have budget constraints you may want to consider other options if you aren't willing to make a commitment to this.
Many business owners buy a business mailing list as a means of increasing their company's exposure to greater sales leads and business opportunities. Indeed, a business mailing list has the ability to draw business owners together, allowing opportunities such as referrals, outsourcing as well as joint venture activities to develop. However, before you buy a business mailing list, it is important for you to understand certain key considerations in order for you to get the most out of the business mailing list which you are going to purchase.
Earlier methods of inertly expecting that someone will walk into your store to buy something, is outdated and no longer works in today's economy. In place of this is Pro-Active marketing via various methods such as direct mailings, cold calling, etc which allows a business owner to contact potential clients anywhere in the country. This is something which can be achieved by subscribing an unlimited business mailing list just at 50$ a month with Unlimited Data Leads.
Not to knock you or anything, direct marketing is tough, but I think you've got kind of a 1 dimensional thought process here.
Ultimately, good copy and the right leads have good conversion potential with enough time and money behind the campaign, but it's your overall conversion funnel that you're building that matters most, especially online. If you're not sending traffic to quality, high opportunity points of conversion, the best designed letters and emails won't do anything for you.
I get a response rate of 1 to 1.25 %. While it won't bring in the huge bucks, it's a steady growth for my biz. That seems to be the norm, no matter what changes I make to graphics, content, colors etc.
My response rate averages .5-1%. Targeting home insurance. Closing ratio avg 50% of the contacts. Only way you can get an ROI worth maintaining is multiple factors. Contact rate, conversion ratio, commission per policy and cost of mailer.
