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What Percentage Of Catalogues Distributed To Targeted Addresses Are Likey To Result In Orders?
Posted By: uktea_mv* on 6/9/2004 7:17 PM (CST) 250 Points
I am about to mailshot my catalogues to addresses drawn from mailing lists, to better reach my target audience.

The catalogue will be supported by a website.

By rule of thumb, are there statistics which show what percentage of the recipients are likely to place orders as a result of the mailshot.?

This would help me with my buisness plan. Thank you in advance, for any help you can proffer

Posted by: mbarber Accepted Answer
6/9/2004 11:38 PM (CST)
Gidday UKtea. Most work to somewhere between 1 and 3 % response rates though there are variables.

Is it your mailing list or just any mailing list?

How recently have they been mailed in the past?

Is this an opt in mailing list or are you just sending them because you have their names?

What offer, specifically will appear on your front page?

What offers will be dotted throughout?

How thick/what quality/what delivery format/plastic wrap/insert cards form part of the catalogue?

The idea for increasing results is to meet as many of the following criteria as you can - its your list; you have good offers; the list have asked for your catalogue; its presents well; its delivered exclusively rather than as part of a bunch of letter box mail; you follow up.

Now as to the website component - why? For ordering/more information/its trendy? Include it and be clear WHY you are including it. Having awebsite is really no big deal unless its a critical component of the campaign. If it is, make sure it is user freindly and ties in directly to the campiagn.
 
Posted by: JBtron Accepted Answer
6/10/2004 8:24 AM (CST)
UKtea,

mbarber has some good points. But in today's fragmented, helter-skelter world, things in direct mail have begun to be impacted in two distinctly different ways.

Database marketing can dramatically increase response rates on direct mail, and I've sold packages that offer 20% response rates, depending on audience, timing and offer.

The OTHER trend is that regular response rates for bought lists like the one you've described are being impacted by those who use database marketing, and their response rates have begun to drop dramatically. 1-3% USED to be the norm. Now, it's closer to one-half of a percent to two percent, maybe, again depending on a number of factors.

What we are seeing is a few dynamics all collapsing on each other.

First of all, the Internet has taken away a large portion of market share, so direct mail has become a bit weaker.

Secondly, it's just as Professor Demming said to Mssrs. Matsushita, Mitsubishi, Toshiba and others in his first TQM class in Japan in 1945: if one of you decides to follow Total Quality Management, you will, by definition of our process, bring others along with you. Your vendors will need to meet your higher standards, will and elevate their sector of the economy as well.

What we are seeing is the beginning of the 'rooting out' of those who are NOT utilizing database management for their direct mail campaigns. Their rates are dropping, and they will opt to use direct mailing lists that ARE database marketed and maintained.


Hope this helps.

Best,

::JBtron
 
Posted by: Jett* Accepted Answer
6/11/2004 2:10 PM (CST)
You know, I have some exerience in this area, as does mbarber and JB. my father has been a circulation marketing consult for many national magazines and catalogues for over 25+ years. I consulted with him to confirm my figures, beliefs, and opinion.

The consesus is JB and mbarber and myself are correct. For magazine ads, a 1%-2% conversion is considered great! But as JB noted, it is rapidly declining secondary to the Internet boom.

Here are some links to the Direct Marketing Association Website where they discuss all topics of direct mail.

I hope this helps!

http://www.the-dma.org/cgi2/htsearch

http://www.the-dma.org/international/archive/pdf/vol2issue7.pdf

Thank you for contacting me and requesting my attention to this matter. My colleagues provided you with compentent and accurate answers.
 
Posted by: markw* Accepted Answer
6/15/2004 11:42 AM (CST)
Earlier this year I sent out a catalog mailing to ~15,000 of our best and most current customers. The thinking here at our company is that the buying customer with the catalog on his desk is the one that calls. I can't confirm this, but to add to what the others have mentioned, here are some ideas:

In addition to the mailing, I created an Adobe Acrobat version of the catalog which I placed on our home page for people to download (capturing their contact info on a sign up form). We also have a form for people to request catalogs be sent to them. I have found that in the last six months for every catalog we send out, we have five others download the .pdf version.

One advantage to having the downloadable version is that before posting it to our site, I made the hyperlinks in the catalog *LIVE* so the customer could go directly to the product information on our site. Additionally, sending our catalog oversees cost ~$5.00. We have saved thousands just by implementing the .pdf version.

If you are banking on the mailing as being your primary sales motivator, you might fall short. There are a lot of hurdles to overcome for the sale to take place:

-catalog recipient address correct?
-correct address, mail room guy toss the catalog?
-recipient tosses it
-recipient throws it on the desk unopened
-recipient opens it, places it on the desk
-recipient looks at it six months later and calls
-your quote was 20% higher than the competition

The figures the others mentioned are on track. You would have to buy a very large list to see any kind of an impact. What is your cost per lead? Better yet, in the end, what is your cost per sale?

Good luck!
 
Posted by: uktea_mv* Author Response
6/21/2004 6:02 PM (CST)
I would like to thank markw, JBtron, mbarber and Jett for their contirbutions. The information gained has taken me down a completely different path. I felt a bit like a flag flapping in the wind before. These answers have helped me to focus. Many thanks, to you all.
 


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