Thursday, July 26, 2012

Direct Mail Tops in Response; E-mail Wins in ROI

Direct-mail response rates significantly outperform digital programs, according to a recent report from the Direct Marketing Association (DMA). But lower costs allow digital to catch up in marketing efficiency. According to the DMA's “2012 Response Rate Report,” response rates for direct mail to existing customers average 3.40%, compared with just 0.12% for e-mail. However, costs level the playing field. Given higher direct-mail costs, it turns out that the cost per sale and cost per lead for direct mail, e-mail and paid search are roughly equivalent. Thanks to the very low costs of e-mail blasts, e-mail can claim highest return on investment at 28.5 times cost, versus 7.0 for direct mail. For more, see http://www.btobonline.com/article/20120614/DIRECT10/306149993/dma-finds-direct-mail-response-rates-outperform-digital

Tuesday, July 24, 2012

Reports Show Print Marketing Drives Digital Sales

Here's more proof that traditional print channels, such as catalogs and magazine ads, inspire mobile and online sales. According to J. Crew CEO Mickey Drexler, the company’s print and digital campaigns are now so tightly intertwined that much of J. Crew’s business moves specifically from catalog to online. The J. Crew catalog goes to 40 million customers a year, and roughly 30% of the 300-store retailer's revenue comes from catalog and online sales. Meanwhile, Google and Ipsos recently released results of a new study showing that nearly half (48%) of smartphone users are performing mobile queries based on ads they see in magazines. And then they buy. Among smartphone users surveyed, 35% made a purchase on their smartphone. For more, see the story at http://socialmediatoday.com/colleenpetitt/560046/reality-check-traditional-print-media-inspires-mobile-purchases