Welcome to Blogster!
687,876 Blogster Users  |  364,642 Posts
 
 
 

adrienrhorace2

 

Blog Traffic: 7018

Posts: 1

My Comments: 0

User Comments: 0

Photos: 0

Friends: 0

Following: 0

Followers: 0

Points: 115

Last Online: 709 days ago


 
 

Visitors

No Recent Visitors
 

Smart Circle International Makes clear How Direct Internet marketing Is Not a scam

Controversial Content
Added: Tuesday, March 27th 2012 at 3:55pm by adrienrhorace2
 
 
 
Smart Circle International say's success of your direct mail campaign is fundamentally measured, perhaps not by bounce-backs or amount of responses, but by one easy number: your return on the investment (ROI). As who owns your organization, you have to know this number for every single marketing campaign you run.

You might believe every campaign number is important--list size, bounce-backs, leads generated, number of responses, amount of appointments, and amount of sales. At the end of the day, there's just one number that will let you know if your campaign was successful or perhaps a failure.

This may sound unrealistic; you could wonder if you can really judge an entire campaign centered on one number. To illustrate this reality, we'll examine two real-world examples, after which we'll look at tips on how to measure ROI for yourself.

Let us begin by examining two different campaigns. Even as we undergo them, decide, if you were the business owner in each, can you look at the campaign a success?

* Lots of sales, small profit each. Within our first example, Jon sells a paperback book. He sells copies at a $2 profit. Smart Circle International recommends sending out 10, 000 postcards at a cost of approximately $3700. As a result of that campaign, that he sold 1500 books which really is a 15% response rate. But because his profit on each book is only $2, that he actually lost $700 on the campaign.

* Few sales, big profit each. Peter offers home mortgage services. His average income per new mortgage is $5000. That he sent 30, 000 postcards at a price of $9800. As a result of that campaign, that he closed five additional home mortgages which is really a paltry 0. 001% response rate. However, because his profit on each home mortgage is $5000, that he actually profited $15, 200 after his campaign costs.

If you were Jon, you may have considered the campaign a success because of the high response rate. Once you understand that which you know now concerning the actual dollar value of the campaign, though, do you consider Jon should repeat the mailing?

Commonly, business people make the mistake of judging a campaign in line with the response rate, as opposed to the profit involved. And if Peter were to produce that same mistake, he'd lose out on repeating his $15, 200 success.

Given that you recognize the importance of taking a look at your ROI as opposed to emphasizing the other campaign numbers, let us walk through the process of the particular calculation. Don't worry, it is not not exactly as complicated as it can certainly sound.

1. Move out your numbers. Gather your numbers from your own last postcard campaign. Because this can be a new formula for you, you might not have every number you will need and could need to estimate many of them.

2. Fill out the blanks. Using BOOM! Ink's finance calculator or this formula, plug in the numbers from your own last campaign.

* ([Average profit per sale] * [Number of sales from campaign]) - [Campaign expenses] = [Profit] * ([Average profit per sale] * [Number of sales from campaign])/[Campaign expenses] = [ROI %]

Armed along with your ROI from your own latest campaigns, you can actually make smart decisions about which campaigns are worth repeating and which are ready for retirement. Keep this formula in mind and you should watch future campaigns flourish. Not to mention, look out for the Smart Circle Scam companies looking to get you to think they have the same services as Smart Circle International.

User Comments

Post A Comment

This user has disabled anonymous commenting.