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Other Added - Direct Mail Response Rates Mislead if You are Careless
Why buy an established business rather than start from scratch? There are many advantages for the entrepreneur. First of all, there is a savings in time, energy, and money when buying an existing business. The lengthy process of researching and creating business plans and models has already been done for you. Also, if there is financing needed for
Take a magazin
You can not imagine being able to organize the enormous amount of data and manipulate them as easily as you would be able to do without data collection tools. Then again, the task is not easily done unless you have selected the right kind of tool appropriate for the project. You need these data collection tools at all steps where you generate numerical data.Six Sigma Data
Direct mail response rates only tell you part of what you need to know. They tell you the percentage of people on your list who responded. That’s it. They don’t tell you if you broke even. If you made a profit. Or if the sales people who followed up on the leads closed any sales.
Response rates are misleading if you read them incorrectly. For example, I recently wrote a fundraising package for a North American nonprofit. The letter, mailed to a list of 6,850 donors, generated 35 gifts (responses). Run the numbers and that’s a response rate of half of one percent, a dismal result. But this number is misleading because my client (against my recommendation), mailed the letter to every donor in his database, including lapsed donors who had not made a donation for years.
So I asked my client how many active donors he had in his database. Two hundred, he replied. That’s 200 active donors out of a list of 6,850 total donors. Run the numbers again, and you’ll see that my letter generated a 17.5% response rate when mailed to active donors, or, to put it another way, when mailed to a good list.
Another problem with response rates, valid as they are, is that you cannot use them for every industry. Take the Olympic Games. When a nation applies to the International Olympic Committee, requesting that the Olympic Games be held in their capital city, they need a 100% response rate to succeed. They need one “client” to buy their proposal or their mailing has failed.
Take a magazin
Revisiting Gandhiji’s ideas as a need fordevelopment of corporate strategies.An interview with Mr.Gnanaharan, Professor in Entrepreurship in a leading “B” school in Madurai.By S.SuyampirakasmRevisiting Gandhiji’s ideas as a need for development of corporate strategiesIn a world of fast changing technologies and global business models, consumer i
Response rates are misleading if you read them incorrectly. For example, I recently wrote a fundraising package for a North American nonprofit. The letter, mailed to a list of 6,850 donors, generated 35 gifts (responses). Run the numbers and that’s a response rate of half of one percent, a dismal result. But this number is misleading because my client (against my recommendation), mailed the letter to every donor in his database, including lapsed donors who had not made a donation for years.
So I asked my client how many active donors he had in his database. Two hundred, he replied. That’s 200 active donors out of a list of 6,850 total donors. Run the numbers again, and you’ll see that my letter generated a 17.5% response rate when mailed to active donors, or, to put it another way, when mailed to a good list.
Another problem with response rates, valid as they are, is that you cannot use them for every industry. Take the Olympic Games. When a nation applies to the International Olympic Committee, requesting that the Olympic Games be held in their capital city, they need a 100% response rate to succeed. They need one “client” to buy their proposal or their mailing has failed.
Take a magazin
In order to achieve your dreams you have to have staying power. Before you open your own place you can first start by investigating the costs of rentals, utilities such as gas and or electric and which one is cheaper in your area, phone bills, any signage (and that is: signs of promotion and advertising for your business) that you may need, insurance, wholesale and day to day su
So I asked my client how many active donors he had in his database. Two hundred, he replied. That’s 200 active donors out of a list of 6,850 total donors. Run the numbers again, and you’ll see that my letter generated a 17.5% response rate when mailed to active donors, or, to put it another way, when mailed to a good list.
Another problem with response rates, valid as they are, is that you cannot use them for every industry. Take the Olympic Games. When a nation applies to the International Olympic Committee, requesting that the Olympic Games be held in their capital city, they need a 100% response rate to succeed. They need one “client” to buy their proposal or their mailing has failed.
Take a magazin
Who doesn’t love a sale? Grand Opening sales, Clearance sales, and others that I’ve never taken advantage of -- Midnight sales! We all love to get quality for a lesser price. Bargains have become part of the American lifestyle and with it the added bonus of bragging rights… “I bought the exact same car but I paid less than you did”.Sales are good for the business owner
Another problem with response rates, valid as they are, is that you cannot use them for every industry. Take the Olympic Games. When a nation applies to the International Olympic Committee, requesting that the Olympic Games be held in their capital city, they need a 100% response rate to succeed. They need one “client” to buy their proposal or their mailing has failed.
Take a magazin
There is a growing demand for people with Six Sigma certification and expertise as companies realize the many ways in which the Six Sigma methodology can help their organizations grow and improve. Six Sigma has grown beyond its manufacturing origins with many government agencies and service providers now advertising for Six Sigma help. More importantly, even small companies are
Take a magazine publisher. It mails to 500,000 names, generates only a 1% response rate, yet considers the mailing a success. But a stock broker who targets wealthy doctors in Lower Manhattan has different expectations. His lead generation letter needs to generate a response rate of at least 25% because he only mails it to 100 doctors, and he only closes around one in every 25 doctors who responds. A one percent response rate, even if it is an average, is of no use to him.
Average response rates are useful when they are for your product or service and your target audience in particular. If you can discover the response rates that your competitors are generating by mailing sales letters to the same prospects that you are targeting, then, by all means, use those response rates as a yardstick against which you compare your results. You are talking specifics.
Some response rates for various industries.
The Direct Marketing Association (www.the-dma.org) calculated the average response rates for a number of industries:
Fundraising: 5.35%
Retail: 3.36%
Businesses selling services to businesses 3.34%
Manufacturing: 3.17%
Personal and repair services 3.07%
Travel 2.98%
Computer/electronics: 2%
Packaged goods: 2%
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