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 |