{"id":189,"date":"2010-03-09T08:46:40","date_gmt":"2010-03-09T15:46:40","guid":{"rendered":"http:\/\/www.deansmailing.com\/rationalmarketing\/?p=189"},"modified":"2010-03-05T01:00:11","modified_gmt":"2010-03-05T08:00:11","slug":"direct-marketing-math","status":"publish","type":"post","link":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/2010\/03\/direct-marketing-math\/","title":{"rendered":"Direct Marketing Math"},"content":{"rendered":"<p><a title=\"Dean's Mailing\" href=\"http:\/\/www.deansmailing.com\" target=\"_blank\">Direct mail<\/a> and direct marketing are all about results and return. Hopefully finding all these formulas in one place is helpful.<\/p>\n<p>Response Percent \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 = \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (responses \/ mail quantity)\u00a0 X 100<\/p>\n<p>Raw Cost Per Response\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 cost per package \/ response rate<\/p>\n<p>Break Even Response Rate\u00a0 \u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 cost per package \/ cost per response<\/p>\n<p>Average Order\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  sales dollars \/ number of orders<\/p>\n<p>Loaded Cost Per Response\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (cost per package \/ response rate)\u00a0 +\u00a0 fulfillment\u00a0 +\u00a0 telemarketing<\/p>\n<p>Profit per Buyer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <span style=\"text-decoration: underline;\"> <\/span>profit dollars \/ number of buyers<\/p>\n<p>Marketing Cost Per Order\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <span style=\"text-decoration: underline;\"> <\/span>marketing cost \/ number of orders<\/p>\n<p>Load Cost Per Sale\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 cost per lead \/ closing rate<\/p>\n<p>Maximum Package Cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 = \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 cost per response\u00a0 X\u00a0 response rate<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Direct mail and direct marketing are all about results and return. Hopefully finding all these formulas in one place is helpful. Response Percent \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 = \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (responses \/ mail quantity)\u00a0 X 100 Raw Cost Per Response\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 cost per package \/ response rate Break Even Response Rate\u00a0 \u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 cost per package \/ cost per [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[46,35],"class_list":["post-189","post","type-post","status-publish","format-standard","hentry","category-direct-mail","tag-increase-response","tag-return-on-investment"],"_links":{"self":[{"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/posts\/189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/comments?post=189"}],"version-history":[{"count":6,"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/posts\/189\/revisions"}],"predecessor-version":[{"id":195,"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/posts\/189\/revisions\/195"}],"wp:attachment":[{"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/media?parent=189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/categories?post=189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.deansmailing.com\/rationalmarketing\/index.php\/wp-json\/wp\/v2\/tags?post=189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}