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Graphic of Jay Lindsay, authorA BRIEF PRIMER ON MAIL
ORDER RESPONSE RATES

By Jay Lindsay
© 2016, National Business Reports

Beginners in the world of mail order or direct marketing have a tendency to be overly optimistic in their expectations of the response rates from their advertising.

As an example a direct mailing piece directed to a non-customer mailing list of 100 people will NOT bring you 5, 10 or 20 customers.

As a general rule one should expect, at best, less than a 3 percent return.

If you are mailing to your own client or customer mailing list with a super offer you might do slightly better but somewhere around a 3% order rate is about tops.

To be successful with a direct mail campaign you must have a product or service that is priced high enough to offset your mailing costs. Do not expect to make a profit by attempting to sell a $5 item.

Because of the low rate of return, many wise marketers obtain new customers using the two-step method which is much more effective.

They advertise using small display or classified ads that offer FREE additional information to those that reply.

Depending on the offer one might expect 5/1000 of 1 percent return. This means that a magazine with a true 100,000 circulation could bring only 50 inquiries for more information.

They then send their sales literature to these 50 who appear to be truly interested in the product or service. This is the point that one might expect a 5 to 20 percent converstion ratio from prospect to buying customer.

The most important thing to know is that each offer you make is different and will have different results. Some will be winners, some will be losers and that why it is highly recommended that you test your offers before rolling out the big advertising bucks.

Also keep in mind that it can be smart to actually lose money in the beginning in order to gain a customer. This is true only if you can entice that customer to buy from you time and time again over many years.


About The Author:  Jay Lindsay is the owner of National Business Reports which he founded in 1980.  He has over 35 years in the Mail Order and Internet Marketing Business.



National Business Reports PO Box 99 Spring Branch, TX  78070


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