One of the great advantages of direct marketing is the ability to test under real marketplace conditions the efficacy of different components of the offer strategy. Direct marketers can test product features, copy, pric3es, media, mailing lists, and the like.
Although direct-marketing response rates are at the single-digit level, testing these components can add substantially to the overall response rate and profitability.
The response rate to a direct-marketing campaign typically understates the long-term impact of the campaign.
Suppose only2% of recipients of a direct-mail piece advertising Samsonite luggage place an order. A much larger percentage became aware (direct mail has high readership), and some percentage formed an intention to buy at a later date (the purchase will occur at a retail outlet).
Furthermore some percentage of the audience may mention Samsonite luggage to others as a result of seeing the promotion.
Some companies are now measuring the impact of direct marketing on awareness, intention to buy, and word-of-mouth to derive a larger estimate of the promotion’s impact than is measured by the response rate alone.
Although direct-marketing response rates are at the single-digit level, testing these components can add substantially to the overall response rate and profitability.
The response rate to a direct-marketing campaign typically understates the long-term impact of the campaign.
Suppose only2% of recipients of a direct-mail piece advertising Samsonite luggage place an order. A much larger percentage became aware (direct mail has high readership), and some percentage formed an intention to buy at a later date (the purchase will occur at a retail outlet).
Furthermore some percentage of the audience may mention Samsonite luggage to others as a result of seeing the promotion.
Some companies are now measuring the impact of direct marketing on awareness, intention to buy, and word-of-mouth to derive a larger estimate of the promotion’s impact than is measured by the response rate alone.