How to Use the 3 Most Common Direct Marketing Measurements to Increase Your Profits!

John Wanamaker, a 19th century entrepreneur, once famously made the statement, "I know that half of my advertising is wasted, I just don't know which half." Fortunately for today's marketers, there are scientific ways to determine which half is wasted, and which half is not, through the use of common direct marketing measurements.

Advertising is, and has always been, part art and part science. With direct marketing, the science part takes center stage as there are common direct marketing measurements that can be utilized to verify the results of the advertising.

With the increased popularity of direct marketing, the success of advertising can be measured through a variety of common direct marketing methods such as cost per acquisition, cost per piece, and response rate.

Before continuing in describing these common direct marketing measurements in detail, it is beneficial to review one of the direct marketing tools needed to determine the success of the mailing. The most important direct marketing tool is the response mechanism. This is how you can gauge the success, or lack of success, of a direct mail campaign. This is the mechanism by which the prospect will use to respond - it may be a postcard to request more information, an 800 number to call, or a website address to place an order. You can than utilize this response to determine the success of the direct mailing.

The first of the most common direct marketing measurements is the cost per acquisition. The cost per acquisition can be determined by taking the total cost of the mailing and dividing it by the number of responses. For example, let's say the total cost of a mailing is $2,000 and 20 people respond. The cost per acquisition is $100. This is an important tool to find out if the cost to obtain a new customer is in line with the profits that you will receive.

The second of the most common direct marketing measurements is the cost per piece. To find the cost per piece, you would take the total cost of the mailing and divide it by the total number of pieces sent. For example, if the total cost of the mailing was $4,500 and you sent 2000 direct mail pieces, the cost per piece would be $2.25. This is an important figure to keep in mind, because by lowering the cost per piece (as long as the number of responses stays the same), you can lower the cost per acquisition.

The third of the most common direct marketing measurements is the response rate. The response rate can be calculated by taking the number of people that responded and dividing it by the number of people that were sent the direct mail package. For example, if 2000 people were mailed a direct mail package and 20 people responded, the response rate would be 1%. This is an important tool that you can utilize to forecast the success of future mailings.

By using all three of these common direct marketing measurements, you can finally determine which half of your marketing is working, and which half is not.

==========================================

Wanna Learn the Secret of Creating Passive Income Online
From a man who made $3,244,842.32 from the Internet in Only 27
months? => http://www.the1andonly.biz

Presented by:
Perfect Home Based Business Opportunities

---

Turn Your Ad Copy into a Goldmine!

Today, more than ever, it is crucial that your ad... Read More

Indoor LED Displays

To promote the audience, staff, customers and other people the... Read More

Design Your Own Newspaper Ads

Many people in business lay-out (design) their own ads. That... Read More

Giorgio Armani: A Persuasive Campaign

Lets examine the use of Giorgio Armani Company's advertisements for... Read More

If You?re Tired Of Adverts That Don?t Work And Letters That Don?t Sell, Then You Must Read This

Over the 32 years I've been involved in sales, marketing... Read More

CD Business Cards- Why Use Them?

CD Business cards are the electronic version of the now... Read More

The Secrets of High Money Classified Ads

When used effectively, classified ads can be one of the... Read More

Constructing Business Advertisements

What many may consider the most important part of advertising... Read More

Radio Interview 101

Different Types of Station ContactReaching radio hosts (for the purpose... Read More

Marketing Lessons I Learned in Chicago this Week...

I was in the fine city of Chicago this week... Read More

Joint Ventures Increase Profits Quickly

A joint venture is when two or more businesses join... Read More

How to SAVE Yourself from Spending too Much Money on Advertising!

How much money have you spent in Advertising, Promotion &... Read More

B2B Marketing Health and Elder Care Services

Quality Care Options is an established company advocating for the... Read More

What Colors Make Your Services Most Attractive?

This information is based on the principles of Laws of... Read More

How To Create Instantly Compelling Ads Every Time

Use This Quick 3-Question Evaluation Process, So You Can Be... Read More

Ads Dont Sell - People Do !

More about advertising by BIG Mike McDanielAdvertising is not a... Read More

Customer-Involving Signage and Selling

Here's some easy ways to create signage that will attract,... Read More

Advertising - Should You Be Advertising Your Services?

You offer a reliable, quality service. You know that if... Read More

6 Must-Have Elements of a Powerful Brochure

Most brochures that businesses put out today end up doing... Read More

3 Inside Secrets To Making You Richer Using Direct Mail!

Making money using direct mail isn't easy. And anyone who... Read More

What?s the Score?

You may be aware that in a basketball game the... Read More

Free Internet Advertising: 6 Proven Ways To Prevent Your Competitors From Stealing Your Customers

It is getting harder daily to generate traffic.And when you... Read More

Where To Call For Free Advertising And Free Business Advice

Believe it or not, there are plenty of opportunities out... Read More

Business Cards: Why Waste Valuable Space?

So many business people neglect this valuable asset that may... Read More

Online Advertising: 10 High Impact Psychological Triggers To Super-Charge Your Ad

If you knew these 10 high impact insider's hidden psychological... Read More

Electronic Display Signs

Electronic display signs are used nowadays in great extent to... Read More

Advertising - Does it Matter?

When advertising, you need to sell your opportunity, your products... Read More

Moving message Sign

Moving Message Signs are a unique, attention-grabbing way to communicate... Read More

Adding Art to Business Spaces

Larger companies have learned that collecting art adds something special... Read More

Electronic Score Boards

Wide range of electronic Key venues around the globe has... Read More

How To Write Eye-Grabbing Headlines That Catapult Your Prospects Into Your Ads

If you're interested in improving the selling results of your... Read More

Scrolling LED signs

Scrolling LED signs is type of LED signs that displays... Read More

The Benefits of Specific Advertising

The great Claude Hopkins (Author of Scientific Advertising) once said,... Read More