# Do Coupon-postcards have enough response-rate te be profitable?

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About a week ago I read a great thread about postcard with coupons on it (you probably know who the author is.) I think it's a great concept and it's a great way for everyone to create a lot of money.

Although I think it's a great idea, I still have some doubts about it. I'm planning to create a 11.7 x 8.3 postcard and start with 8 coupons on it. This way it's not really hard to fill the postcard and I can learn a lot from it. I will ask â‚¬300 for 1 ad space in a town with 4000 to 5000 households.

The author of the thread I mentioned said he had a response rate of 13%. Personally I think he calculated it wrong. He send out 10.000 card with 16 ads, so in reality he send out 160.000 coupons. 13% of 10.000 = 1.300 coupons redeemed. In reality he had a response rate of 1.300 / 160.000 = 0.8125%.

Let's say I send out 4500 postcard. A business then has (4500 x 0.8125% =) 37 new orders. If a business wants to make some profit, every order has to be â‚¬15+. Is this realistic?

Those 37 orders aren't all new costumers. Existing costumers will redeem those coupons too, so that isn't really extra profit because they would have ordered anyway (with our without the coupon).

I've also got another question. If you sell 16 ads, the ads will overlap. How do you solve this?

Thanks!
• First of all, everyone who's been around this sub-forum for a while knows who Bob Ross is.
Second, I think you need to pick up his WSO.
It was 10,000 postcards through Every Door Direct.
You won't be mailing 10,000.... you only have 5,000 to mail to.
I believe, you have to have at least 5,000 to use EDDM anyway.

The redemption rate will vary greatly depending upon the market it is mailed to and the offer the business puts on it.

Overlap. In his WSO he gives you a template to help solve this.
If the person on the front of the card has their coupons at the top of their space, then the ad on the back would have their coupons on the bottom or in the middle of their space.

Now the product/service doesn't have to cost \$15, you have to look at the LTV of each customer.
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• ..... duplicate post on accident.....
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• I'll respond since it's about my thread obviously. I'm sure others will weigh in too.

Stop solely thinking about response rates because if you're just trying to hinge everything on response rate then you will severely limit your prospects as well as recurring potential.

You don't want to promise an insurance company that they'll get 50 new clients, because they'll get pissed when they only get one or don't get any. Yet if you sold them on the fact that 10,000 local people will see it, they become sold on that value instead.

The businesses that will generate a lot of response on your card are ones that appeal to the general public and they must have extraordinary offers to go along with it. There's so many other businesses out there that will benefit regardless of response.

Lots of owners just want to get their offers or brand name out efficiently. There's also higher ticket services like contractors that might only get a few responses but if it lands them a deal it will be thousands and thousands in profit.

Do owners spend thousands to build a website that doesn't generate response and continue to spend each month maintaining and hosting it? Yep.

Do owners spend thousands every year to place yellow pages ads that don't get response? Yep.

Do owners routinely spend thousands on highway signs and billboards that don't generate response and continue to do it month after month? Yep.

Do owners routinely spend thousands on newspaper ads, radio ads, and television commercials that don't generate response yet continue to do it over and over? Yep.

For nearly all small businesses, something that generates a trackable response can be a very new and exciting experience. Many of them will crap themselves when they get a few people coming in with coupons because it's never happened before, and never happened so inexpensively.

I've got clients that have stopped spending \$60,000+ per year on 'brand' advertising and now only pay a couple thousand a month to me for 9x12 space and small solo EDDM mailings. Best part is they generate more response than they ever did with their \$60,000 per year past marketing expenses.

A lot of businesses are simply waiting for someone like you to come along with a new marketing opportunity that they haven't been pitched on ten times a day like yellowpage ads, radio, seo, web design, etc.

Any direct mail pro will tell you that a 1% response rate is very common even on targeted mailings that can easily cost thousands. For a few hundred bucks, even getting a TENTH of one percent can be well worth it because the cost is so low for what you get.

Coupons generate new customers and repeat customers, which are both very good. It's a very common myth that existing customers would come in anyways without a coupon. That's something most small business owners hardly ever understand. Do you think macy's should stop running sales and offering \$20 off coupons because their existing customers will come in anyways? lol.

Coupons and strong offers:
• keep existing customer happy and spending more often
• they keep customers from going to competitors
• they generate new customers, creating lifetime vlaue
• they create brand awareness
• they are well received by most people
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• Go ahead a buy the program, it will answer all of your questions and more. It is a whole lot of work, but then what isn't?
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Thank you! This makes a lot of sense. I will start contacting businesses after 18
August (back from vacation ) and hope to launch my first postcard 1 October.

 Originally Posted by digichik Go ahead a buy the program, it will answer all of your questions and more. It is a whole lot of work, but then what isn't?
I don't have enough money for it. My plan is to create a postcard with 8 spots to get some experience and money to buy the WSO .
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•  Originally Posted by Jerrel I don't have enough money for it. My plan is to create a postcard with 8 spots to get some experience and money to buy the WSO .
Beg, borrow or steal and
Get the money, what you will learn will get your sales off the ground much quicker.
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• I have done direct mail coupon magazines for almost 20 years... A 1% -2% return is very common with a solid offer and a 10% return is not unheard of for a very good offer.

Don't talk about return rates with your clients though because if the response is great but falls one or two short of what you said... well, guess what the client remembers... you didn't perform like you should have. Instead focus on the long term value of each NEW customer. The value of a new customer is very high over the lifetime... much higher than you would ever think. It's not hard to figure out either if business owner will share figures with you. Take amount they make divided by the number of customers they have and you have it!

I was shocked to first learn that a customer in a Salon/Spa in the U.S. is worth approximately \$1,200. per year. When you get the Salon owner looking at that they can see quite easy why my campaign is a success if I only bring them in one new client or even better yet keep them from losing an existing client to the Salon that is going to run with me if they don't. Remember, the fear of loss is much more motivating than the desire to gain!!!

A lot of times a client will want to get you to talk about response... simple solution... explain that if a car dealer runs a coupon with me for a no strings attached FREE CAR offer with no purchase necessary they would get a near 100% response rates because people would be digging their neighbors coupons out of the trash t redeem them for such a terrific offer. On the other hand if they run a coupon that said FREE Set of Floor mats with the purchase of a new car at sticker price... well you know the results... they would get 0% response. By working on the long term value of a client or customer you can usually help the business owner craft some very good offers.
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•  Originally Posted by Adwizard Don't talk about return rates with your clients though because if the response is great but falls one or two short of what you said... well, guess what the client remembers... you didn't perform like you should have. Instead focus on the long term value of each NEW customer. The value of a new customer is very high over the lifetime... much higher than you would ever think. I was shocked to first learn that a customer in a Salon/Spa in the U.S. is worth approximately \$1,200. per year. When you get the Salon owner looking at that they can see quite easy why my campaign is a success if I only bring them in one new client or even better yet keep them from losing an existing client to the Salon that is going to run with me if they don't.
AdWizard ... those are GREAT points! It's NOT all about what comes in on the front end! Let's add up the BACK-END too! In cases, where the LTV of a customer is HIGH (like a Salon) ... it's HUGE.

I've used a "spreadsheet" successfully to convey this to small business owners. Once they see how MUCH a customer is truly worth over months and years (even at a low average sale of \$20) they begin to see things DIFFERENTLY!
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• I talked to a friend of mine yesterday who owns an advertising agency. He's just done or is doing Every Door Direct for a supermarket with the 12x15 card in two zipcodes where they are having a problem. But he's using the whole card for one client.

I trust this man's opinion and he steered me away from an area I was considering because it's too upscale. He gave me some other areas in my market that he didn't consider good for this type of offer and gave me one that I think I'm going to concentrate on.

Although race is mentioned here, I'm only presenting this as demographic information, as he presented it to me. I hope nobody takes it any other way.

My friend broke it down like this. When responding to coupons, Hispanics have the best response rate, blacks are second and he said Asians do not clip coupons.

He also said when you get into the middle class, they tend to get away from coupon clipping and that richer people as a class don't clip coupons.

Anybody have a take on this?
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•  Originally Posted by Paul Bottoms My friend broke it down like this. When responding to coupons, Hispanics have the best response rate, blacks are second and he said Asians do not clip coupons. He also said when you get into the middle class, they tend to get away from coupon clipping and that richer people as a class don't clip coupons. Anybody have a take on this?

www.marketingbrainfarts.com/couponstats.pdf

Everything he says up above is wrong. Check out page 6 in regards to his Asian comment. It turns out they are the BIGGEST coupon clippers. Then check out page 7 and you'll see richer people are bigger coupon clippers than poorer people.

Next time you have a friend tell you some "facts" make them back it up links.

One more thing... I'm going to remove the PDF sometime this weekend. So if you want it grab it NOW.
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•  Originally Posted by Paul Bottoms I talked to a friend of mine yesterday who owns an advertising agency. He's just done or is doing Every Door Direct for a supermarket with the 12x15 card in two zipcodes where they are having a problem. But he's using the whole card for one client. I remembered what Bob said about some areas responding to coupons better than others so I asked my friend about this. I trust this man's opinion and he steered me away from an area I was considering because it's too upscale. He gave me some other areas in my market that he didn't consider good for this type of offer and gave me one that I think I'm going to concentrate on. Although race is mentioned here, I'm only presenting this as demographic information, as he presented it to me. I hope nobody takes it any other way. My friend broke it down like this. When responding to coupons, Hispanics have the best response rate, blacks are second and he said Asians do not clip coupons. He also said when you get into the middle class, they tend to get away from coupon clipping and that richer people as a class don't clip coupons. Anybody have a take on this?
My experience was different. As someone else's may be for their area.
I helped my brother with his heating and cooling company.
He only promotes through a coupon in the ValPak.
The coupon was for \$50, but upsold to \$300+
The Asians/Chinese that did call had very nice homes. Usually a bit of a language barrier, but generally \$400 jobs.
The Blacks were cheap.
The Hispanics never called.
There were responses from higher end neighborhoods.
The majority of the business comes from white, middle-class, working families. Ages 30-50, then about 20% of that was from retired folks, usually in condos.
This is nothing against different races. I am not trying to discriminate, just providing what I noticed while working with him.

The primary coupon that got a response was for air duct cleaning.... (By the way)
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• i own a Direct Mail Company for 8 yrs in Atlanta, GA. The coupon thing works and is a great way to Direct Mail but.....lol

There is way better ways you can get 3x 4x the coverage for less\$\$\$

Ask your local paper if the have TMC (Total Market Coverage) Most of them are the first Tuesday of every month.
As long as you have a noticeable enough mailer you will get noticed and be in 400% more mail boxes
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"The Real Deal"

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• For years I have done large mailings for companies in my market. At least for a decade. I came to see, as Adwizard and Bob Ross have already mentioned, you need to sell ALL the benefits of mailing to keep a satisfied client.

I tell them there are THREE PRIMARY BENEFITS worth doing a mailing for:
1. Immediate calls/ leads/visits. These the client will notice or credit to the new mailing.
2. Calls/leads/visits over the next month or two. Client will not be able to always connect to the mailing....but that doesn't mean they are not occurring.
3. Long term Image and "Top of Mind" awareness, that will ultimately result in LESS advertising being needed.
The worst thing to do is hint at or imply, "you should get between 30 and 50 calls this week"

Even though we primarily sell Direct Response benefits, you'd be surprised how many businesses are just as interested in IMAGE. I sell many LOGO redesigns and things like that.
They will sometimes be quicker to spend on vanity than more immediate profit strategies.
_____
Bruce
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•  Originally Posted by Bruce NewMedia Even though we primarily sell Direct Response benefits, you'd be surprised how many businesses are just as interested in IMAGE. They will sometimes be quicker to spend on vanity than more immediate profit strategies.
So true Bruce!

Pizza shop owner I was just with said, and I quote, "Look at this BEAUTIFUL full page color ad of my menu I put in the Pennysaver? Didn't get ONE customer from it. Would have continued with it had I just got a handful of orders."
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• Jerrel,

I highly recommend Bob Ross post card system http://9x12system.com/ it's AWESOME and you should really
order it if you want to learn how to make huge profits with post cards.

I wish you much success,

Martin
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• I have mailed millions of coupons since 1993 all over the north coast of Ohio. I mailed around a million homes in all kinds of neighborhoods. Mail zones were broke up into 15-20,000 homes. I mailed the very affluent neighborhoods that were full of Cleveland's sports stars and doctors, attorneys, etc. as well as the areas that were lowest income. It is absolutely true that wealthy people use coupons at a much higher rate than those people in poverty!!! Why, I'm still not sure... I have came to the conclusion that is has to do with one of two reasons: 1. Wealthy people are generally of higher education, saving money every chance they get. That's why they are wealthy. 2. People in poverty don't have the money to spend therefore aren't using coupons but more likely they are just content to be right where they are and aren't interested.

Go Figure
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• Response rates for different demograp)hics (including race) are going to vary tremendously based on each different market, and is going to be based on other demographic factors such as income, age, etc. You can't just take one example in one situation and make generalizations abou it.
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• "Do wealthy people want to save money".....resounding YES!

"Do wealthy people look for the best deal".....Yep again!

"Do wealthy people bargain shop".....You better believe it!

"Do wealthy people shop at upscale and dollar stores"....of course!

I learned this buy selling Lexus and by looking in the car lots of Costco and Sam's Club.

***IMO....it comes down to 3 things for me

2. Tell them you have the "best solution" through your copy
3. Give them an unbeatable offer they can't refuse.

Most demographics will respond but.....it depends on so many factors and many have been mentioned here and other threads.
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