Do "More Leads" Really Mean "More Money"?

All Too Many Marketing Professionals Believe that more leads means more revenue. While this is true to some extent, Our focus on pre-qualification not only bring in more sales but the process will be easier allowing more time with actual buyers, we will show you how to increase sales and spend less time with unqualified prospects... read more

Marketing Strategies

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Marketing Strategies

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Marketing Strategies and Custom Lead Generation information: For a mailing in which the only response is a "hard" offer—that is, to respond you must take an active step, such as calling a salesperson, having a sales representative visit your office, or going to a seminar or demonstration—the response rates range from 0.5 percent to 2 percent.

For a mailing that has both a hard offer and a soft offer—the soft offer typically being "mail the enclosed reply card for a free brochure"—average response rates are from r to 3 percent or so. For a business-tobusiness lead-generating mailing that stresses the soft offer—that is, emphasizes the free booklet, report, or information kit being offered rather than the product itself—average response rates are from 1.5 to 4 percent.

If the free offer is particularly enticing, or if a valuable premium (free gift as an incentive to respond) is added, response rates of 4 to 5 percent or more are possible. But typically, between to and 2.5 percent of the sales leads can be converted to sales within a few weeks to six months after the inquiries are received.

About Marketing Strategies

The key observation that can be made about mail-order marketing over the past several years is that response rates are on the decline. Let's say we are selling a $149 software product via mail order.

 

Now, we have to print and mail a direct mail package to get orders. Let's say our cost for the mailing is $700 per thousand. To calculate the number of orders needed to break even: Breakeven = Mailing cost per thousand = Profit per order For our example: $700 mailing expense = $134 profit per order = breakeven on 5.2 orders per thousand pieces matted. In terms of percentage response this comes to: 5.2 orders _ 1,000 mailings x 100 = 0.52 percent.

However, I cannot stress enough that these are rough averages only and may or may not apply to your product.

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