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A Cynics view of response rates. Many people are skeptical when they read about response rates from variable data programs that achieve in excess of 25%. These types of response rates can be found in many of the testimonials that are available in variable data case studies. The articles would have you believe that there is some magic spell that is cast that causes a typical response of 2% to soar to the heavens! This discussion is for those of you who do not believe in magic. In situations where the message was not getting through conventionally, it is possible to see this type of dramatic response rate increase. However, for those of you who are not convinced that simply putting someone's name and address on something, and referring to them on a first name basis, is going to cause them to purchase something they had no intention of buying before they got your mailer, then consider the following: You are doing a mailing of 10,000 and the typical response rate for this is 2%. So let's assume for a moment that you were able to qualify the records in your database to identify those potential recipients who absolutely, positively, would not purchase the pitched product. Then why not pull them from the mailing and not incur the expense of sending them a printed piece? No magic there. So to put some numbers to it — if you could eliminate 5000 names from the list of 10,000, you would, by virtue of not sending 5000 pieces, thereby increase the response rate, assuming it was 2% to start, to 4% (200/5000) a 100% increase. Now this may appear to be almost nothing in comparison to the huge successes highlighted by the testimonials, but consider for a moment that you have doubled the response. If you apply the metrics of response on through to sale (i.e. what percent of respondents ask for more information and then how many actually make a purchase), whatever the numbers are — increasing sales by 2x is substantial. Let's take inventory. We have printed less than we would have conventionally. Even if it cost more per piece, it would cost less for the job. We have used the data to target the mailer. And the bottom line is a better response rate that can yield a substantial return. Not bad business for a skeptic! So, in conclusion, while the stratosphere level response rate stories may be the ones that get the most attention and are most talked about, as well as being the most hyped, it is important to keep it in perspective. Achieving a 4% - 6% gain in place of a typical 2% is a very worthwhile and profitable target.
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Variable Printing — Start Me Up! Target Marketing: One-to-One and Customizing The Challenges of Variable Printing A Cynics View of Response Rates |
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