News
10/29/2015
David Ashton

When you think about evaluating the success of a marketing campaign, what comes to mind? For many marketers, it’s response rates. However, that just because someone “responds” by contacting you doesn’t mean that the campaign was profitable. The true measure of success is whether they actually buy something. That’s why one of your most important measures should be conversion rate.

Let’s say you’re a gourmet store in the heart of a college community. You just launched a line of breakfast items that includes pastries, breads, and gourmet omelets. You develop a campaign of 10,000 direct mailers that invite students to request an email- or text-back coupon for 25% off one of the new items. As an incentive, you offer a chance to win concert tickets to see the band Little Mix, which soon will be performing in the area.

Initially, you’re thrilled by the response rate. A whopping 32% of students requested the coupon. Then the excitement fades. Although more than one-third of students responded, only 3% actually visited the store and redeemed the coupon. When you work out your ROI, you didn’t even break even.

Let’s say you had targeted the local community instead. Let’s say the response rate is lower—8%—but it’s an affluent community with a high percentage of recipients working in and around the university. Of those who do respond, 32% redeem the coupon and try the new breakfast. From this pool, the number of conversions is 150% higher than the college student pool. Your cost to produce the campaign is the same, but your ROI is vastly different.

This simple example illustrates the power of the conversion rate. Initially, who wouldn’t prefer 32% response rate over 8%? But the conversion on the back end ends up being the deciding factor in the profitability of the campaign.

So don’t think response rate — think conversion!

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Linemark is a privately-owned and operated printing communications company headquartered within close proximity of the Washington DC / Baltimore Metro areas (Upper Marlboro, MD). Linemark is one of the fastest growing companies in the region within the communications industry. Operating 24 hours a day from a 90,000sq ft facility, the intensely customer focused company delivers solid and innovative solutions to their client base of associations, corporations and non-profit organizations.

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