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Crm - Direct Marketing: Redemption Rate
Posted By: tanya* on 12/29/2004 4:54 AM (CST) 125 Points
Hi !!

I'd like to know what the industry benchmark is for direct marketing campaigns w.r.t redemption rates. What would be a good customer response rate to a DM campaign so that i can assess what we've done in the past.

Thanks,

Tanya

Posted by: ppb* Accepted Answer
12/29/2004 12:44 PM (CST)
I would say the average accross the board is 2%.
However, depending on how targeted an effort and how well you know your audience and can incorporate a "call to action" your rate will be much higher.

Regards,
pb
 
Posted by: Pepper Blue Accepted Answer
12/29/2004 10:49 PM (CST)
Hi Tanya,

1-3% is an "average" range, but there are a lot of variables to consider.

However, you mention the word "customer" rather than "prospect" so it could very well be much higher if they are customers and you have a strong call-to-action.

If you are prpospecting from a rented and poorly targeted list it will be on the low end.

If you are prospecting vs. sending to customers it is typically better to spend the extra money for well-targeted list as your conversion will be on the higher end also.

I hope that helps.
 
Posted by: Papadoc (Steve)* Member Response
1/3/2005 4:11 PM (CST)
It all depends on how targeted the campaign is and how good your timing is. The same program run at different times of year and/or even hitting the customer on different days will get completely different responses.

For one former client, his average was .3% when he was not optimizing at all. We did a lot of analysis and tweaked the program a lot and ended up at over 6.5%. If you are going after new business with current or former clients, it can be much higher than that.
 
Posted by: rbooth3399* Member Response
1/28/2005 5:07 PM (CST)
I've been working with a direct marketing company up in Canada that specializes in marketing for gyms/health clubs and they say that a .5%-1% return is the best you can expect...especially when you're looking for new customers versus talking to ones you already have.
 
Posted by: Allan Accepted Answer
1/28/2005 6:05 PM (CST)
There are new technologies available for direct mail that personalize the mail to each and every recipient. It's a 1-to-1 marketing approach. The "landmark" study on this subject tracked 144,000 direct mail pieces and tabulated response rates from each of 9 different types of direct mail. The personalized mail generated response rates between 7% and 20%, depending on the offer being made, and whether it was a B2B or B2C mailing.

This kind of response to direct mail is almost unbelievable. Yet it can be done when the appropriate prospect database is used to target people, and when the database is robust enough to provide good demographics, lifestyles and other information that can be used in the personalization process. You might want to read the entire study, which you can download at www.salesleadsexpress.com/vddm.
 
Posted by: telemoxie Member Response
2/1/2005 11:27 PM (CST)
It depends on who you are talking to. If you are talking with your boss, trying to set reasonable expectations, then I would say 1/2 to 1% response. If you are negotiating with an agency, and hope to hold their feet to the fire down the road, then I would say 1 to 2%.
 
Posted by: Val (Moderator)* Moderator Response
2/2/2005 8:43 PM (CST)
Hello all. I am closing this question, since its more than two weeks old. We do this to make sure members' contributions are rewarded in a timely manner and to improve the visibility of newer questions.

Thanks, so much, for participating!
Val (Moderator)
 


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