Increase Your Response Rates Using Personalized Communications:
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Database technologies and personalization advancements are making it possible to communicate to your customers through highly personalized one-to-one marketing campaigns.  Using this technology and creating one-to-one direct mail campaigns has shown significant increases in your response rates.

What is evident is that consumers prefer a personalized communication piece over static communications.

Figure 1: Results of Survey on Personalization (Source: CAP Ventures, 2003)

Here is a sample of a traditional direct mail campaign and the response rates
compared to a highly targeted personalized direct mail campaign:

Traditional Fixed Image Direct Mail

Production costs: 25,000 pieces @ $0.40 each = $10,000
2% Response rate = 500
Revenue model: 500 @ $100 average sale = $50,000
Production cost as % of revenue = 20%
R.O.I. = 400%
Cost per response = $20
Profit = $40,000

Highly Targeted, Personalized Direct Mail

Production costs: 12,500 pieces @ $0.80 each = $10,000
10% Response rate = 1,250
Revenue model: 1,250 @ $100 average sale = $125,000
Production cost as % of revenue = 8%
R.O.I. = 1150%
Cost per response = $8
Profit = $115,000