Case Study - Campaign Achieves 452% ROI

[Ravedesigns]

These comments are in regards to the SitePoint.com article \'Case Study - Campaign Achieves 452% ROI\'.

Hey Matt - Good article and great case study there...but while the ROI is great...the response rate for that mailing was terrible!! Over 400 cards mailed and only ONE response?
That's much worse than the typical junk mail rate of 1% - 2%, and I can't help but wonder how great that ROI would be with a better pulling postcard.

I really think postcards are a great way to market just about any product or service, and appreciate you writing an article about just how effective it can be.

Cheers!

Steve

[LeoWebDesign]

{First Time Posting}

I found the article interesting and encouraging since I happen to be working on a postcard campaign right now! My list is almost complete and I am waiting for the postcards to come back from the printer.

I have done some e-mailing campaigns with a 1% success rate. Not a newsletter, just an e-mail introducing my services and how I can help them.

[Ravedesigns]

Hey Leo...Welcome to Sitepoint, and thanks for posting! I'm just curious, but could I ask what it's costing you to have your postcards produced, and if you're using a local printer or an online service? Good luck with the mailing, and I hope you get a killer ROI!

All the best,

Steve

[ahtram]

Hi, Steve. Martha here. I'm the gal who was just featured in Matt's article.

Now, to address your concern:

"Hey Matt - Good article and great case study there...but while the ROI is great...the response rate for that mailing was terrible!! Over 400 cards mailed and only ONE response? That's much worse than the typical junk mail rate of 1% - 2%, and I can't help but wonder how great that ROI would be with a better pulling postcard."

My reply:

I'm going for quality of response, rather than quantity. Yes, I know that this is controversial in direct mail circles where that 1% - 2% response rate is considered sacrosant, but I'm more concerned with the revenue brought in than the percentage of responders.

My purpose in sending the regular cards is to:

1. Get business. And note that the case study did reference a card mailing in which the business brought in did exceed the money put out on the promotion.

2. Keep my name out there. This is where most small businesses drop the ball. They do sporadic, now and then marketing efforts, but they DON'T keep at it. That's why I keep doing the card mailings. They serve as a monthly reminder to me to get in touch with the people on my list.

3. Branding. I've become known as that web design gal who sends those postcards, and, hey, when you're in a hyper-competitive business like this one, you MUST make yourself stand out!

Now, I'll admit that some card mailingss only get one response, but what if I didn't send any cards? Then, NOTHING would happen. And that wouldn't be good for business.

As for me, I'll keep on postcarding. My most recent card mailing pulled a call from someone I wasn't even expecting to hear from. (She attended a seminar I presented late last year.) If things go according to plan, that'll be a sale of at least $1,500 to start, and I think she may turn out to be a long-term client as well.

Martha Retallick

[Ravedesigns]

...and thanks for your reply.

Please don't think I was being critical of your efforts, as I believe postcards are a great way to market just about anything...and you certainly did well with the ROI you showed on that one mailing. I give you lots of credit for that, and for consistently keeping your name in front of your prospects as you say you do with repeated mailings.
Keep up the great work!

Best regards,

Steve

P.S. Just curious...do you have your mailings produced locally, or have you found a good online source for printing postcards that you'd care to share with us?

[LeoWebDesign]

Steve,

Thanks. This campaign is pretty targeted. I am focusing mostly on types of businesses that I have done sites for and that I think others will jump on the wagon. They want to see you have "experience" in their industry, as well as solutions that can help them. I am going for Realtors, builders and attorneys with some other types of businesses thrown in their too. Second, I am focusing very locally. I am utilizing my local Chamber of Commerce that I am a member of. They have 1300 members!

Then I am following that up with an ad in the Chamber newsletter. In March I am following up again with a bigger ad in the Chamber Directory which is sent out once a year. My thinking is that by then they will know the name and they keep the directory for the rest of the year as reference.

I may also follow up with a letter and phone call in their too.

To answer your question: I am using Vista Print. Maybe not the best choice? I bought some fancy glossy type cards. I want to make a good first impression. I am sending out 250 cards. The total cost with printing and postage is $145. As my list grows I will send out more.

Matt

[ahtram]

Here are 3 places to try. I've used 'em all and recommend them highly:

1. Copycraft, a US company based in Lubbock and Austin, Texas:

http://www.copycraft.com

2. GFX Printing, a Canadian company located just outside Toronto (Mississagua, Ontario, to be precise):

http://www.gfxinc.com/

They also do "put your website on a postcard" cards. In fact, they're doing on for me right now. Details at:

http://www.gfxinc.com/webcard_printing.html

3. Modern Postcard, a US company located in Carlsbad, California:

http://www.modernpostcard.com

Hope this helps,
Martha Retallick

[Ravedesigns]

Thanks Martha - I appreciate the links!

Steve

[Freakyboy]

Steve,

The companies Martha recommended are all really good, I've used them before, with great results. Here is the company I am currently using:

http://www.psprint.com

The quality is really good and the prices are the best I've found. I use their "Premium Club Card Flyers". 2000 4x6, full-color on both sides, on 12 pt. stock, UV coating is just $188.

For a shorter run, say 250, get the "Post Cards". 250 4x6 Full-color front, black back, on 12 pt. gloss cover stock, with UV coating is just $60.

No I don't work for the company ... I've been in the graphic and web design business for quite sometime and dealt with a lot of companies that charge an arm and leg. I just like to pass along a great deal when I find one.

If you decide to go with a local company, use the "Online Instant Pricing Estimator" at psprint.com or one of the companies Martha recommended, to get the price for the item and quantity you want. Use that estimate to negotiate a better price with the local printer. Never pay the rate they first quote you ... always negotiate. Times are tough right now, especially for a lot of "mom and pop" printers, if they want your business, they'll negotiate.

I hope this helps.

Ken Gorden

[Ravedesigns]

Hi Ken - thanks much for the link and the info! The prices you mentioned are certainly good, and I'll definately check them out!

Best regards,

Steve

[ahtram]

Thank you for recommending your printer, which can be found on the WWW at:

http://www.psprint.com

In Ken's post, he mentioned that he could get 250 postcards printed at a time. People, in the world of postcard printing, small printing quantities like this are HARD to find. Most printers won't touch orders under 1,000.

So, thanks again for the info, Ken!

Martha Retallick

[Peter v/d R]

Could somebody please tell me what ROI exactly stands for. I understand it's something like a responce rate? Or...

Thanks in advance,

Peter

Hey Peter,

ROI means return on investement. Basically a ratio between the amount of money you put in and the amount of money that comes out

[Peter v/d R]

Thanks Bruno!

But, let's say I put in 200 dollar and sell 20 items of 10 dollar as a result. Now what's my ROI? Is it 0%, because I don't make any profit or is it 100% because I get 100% of my invested money back?

Peter

[LeoWebDesign]

Originally posted by Peter v/d R
Thanks Bruno!

But, let's say I put in 200 dollar and sell 20 items of 10 dollar as a result. Now what's my ROI? Is it 0%, because I don't make any profit or is it 100% because I get 100% of my invested money back?

Peter

In that case you wouldn't measure in percent. It's just 0.

ROI gets harder to measure with repeat advertising. You may get more sales down the line from the result of that campaign coupled with other campaigns. It can be more easily tracked with mailing to specific groups. Print and Web advertising is even harder because you don't know exactly how many eyeballs you are getting.

So if you did another mailing for $200 to the same group and 30 items sold at $10 your total ROI for both mailings would be $100.

Matt

[Peter v/d R]

Originally posted by LeoWebDesign

So if you did another mailing for $200 to the same group and 30 items sold at $10 your total ROI for both mailings would be $100.

So if I get it right, ROI measures the profit? Because in our example we invest $400 and get $500 in return, which makes $100 profit, which according to what you say, equals the ROI.

Peter

[LeoWebDesign]

Originally posted by Peter v/d R


So if I get it right, ROI measures the profit? Because in our example we invest $400 and get $500 in return, which makes $100 profit, which according to what you say, equals the ROI.

Peter

I don't know if I would call it "profit". It is what is left over before your other operating expenses.

[Ravedesigns]

So the $100 would be your "gross" profit...after any other expenses you'd have your "net" profit

Have a good weekend all!

Steve