6 {{ upvoteCount | shortNum }}
6 {{ upvoteCount | shortNum }}

Is there such thing as a "typical" response rate?

by splitTest
4 replies
One of the earliest things I learned about direct mail is that a typical response rate is 1 to 2 percent. A good turn out is 3 percent.

You'll even see these figures quoted in copywriting books here and there. I've never really believed nor disbelieved it – just always assumed it's based on studies of hundreds and hundreds of mailings.

...But you know what they say about assuming. And given all the various factors that go into response rates for different projects, the 1 – 3 percent standard seems kinda arbitrary...

So I ask the experts here: have you ever heard of this standard? What do you think of it?

Why has it survived? (...Maybe it's just a relic from the olden days of magazine advertising? )

Does it hold true for email and web traffic?

And most importantly – do you quote a "typical" response rate to set expectations for your clients? Not a guarantee or anything like that, but just a conservative estimate that might allow them to justify their mailing based on "break even" costs?
#rate #response #thing #typical
  • Profile picture of the author DougHughes
    I have found the response tables at the National Mail Order Association useful when considering mailings. These tables are helpful because they show average dollar amount spent, industry, and differences in response between mailing to house and rented lists.
    Here is a link: Average Response Rates for Direct Mail

    The DMA also publishes a yearly "Response Rate Report" available for around $200 from the DMA website. However, here is a link to a 2010 report:
    http://www.zeostek.com/download/2010...ate_Report.pdf

    For some email stats: Email marketing statistics 2014 compilation

    The DMA report is based on survey data which should be taken cautiously. But for lack of hard data is a fair guideline.

    If a client is asking for this information from you my guess is they are inexperienced marketers or inexperienced with the medium. I would avoid giving estimates.

    With larger advertisers, mailers, and data houses there is a field dedicated to attempting to predict the responsiveness of data called predictive modelling. Predictive models ask questions about the data and assign values to various questions or elements. The data is then matched up with the model and rated according to how well it fits the model. What emerges should be a predictive model of responsiveness of a data set.

    If I am put into a situation where a client is moving into unfamiliar territory and I have to figure out break-even projections for a campaign I hope for the best but plan for the worst. I input numbers far lower than I expect and work up to the bottom average. If the numbers don't work out they don't work out.

    In a copy situation and under normal circumstances the client would be the one figuring out the projections. They will have a test budget available they can afford to lose.
    Signature

    I write copy. Learn More.>>

    {{ DiscussionBoard.errors[9580467].message }}
  • Profile picture of the author splitTest
    Thanks Doug! Your posts are always a cornucopia of useful info and insights. This one really knocks it out of the ballpark.

    I had heard of the DMA but somehow not the NMOA. Interesting stuff at that site -- not just the stats, but also the "New Products to Sell" page and the "Wholesale Products by Category" link...

    Damn good reading -- all of it!

    Domo arigatou gozaimasu!
    {{ DiscussionBoard.errors[9582122].message }}
  • Profile picture of the author DougHughes
    You are welcome SplitTest
    Signature

    I write copy. Learn More.>>

    {{ DiscussionBoard.errors[9584180].message }}
  • Profile picture of the author AmericanMuscleTA
    No, there is no typical response rate. It's just like... make 100 phone calls and get one client.

    I'm in real estate and could get a tenth-of-a-percent response rate and make a 5,000% ROI.

    Worry more about the Return on Investment than the response rate. We bank dollars not response rates.
    Signature

    David Hunter | Duke of Marketing
    www.DukeOfMarketing.com
    www.BibleAndFriendsYouTube.com

    {{ DiscussionBoard.errors[9584299].message }}

Trending Topics