How
can you tell if your 1:1 print efforts are working? Measure them. Even if you
don’t have a full-time staff of business analysts, creating a simple ROI
doesn't have to be daunting. Here’s how to get started.
1. Set specific goals for
your campaign.
What
are the goals of the campaign? If you don’t have well-defined goals, you won’t
know whether you are meeting objectives or not. The first step is to get those
goals nailed down. Do you want to increase total revenue and profits? Is the
purpose to increase sales of a particular product or service or expand into a
new market? Is it general branding?
2.
Crunch the numbers.
Customize
this basic print ROI model with your own assumptions to determine whether your
campaign will be successful.
ASSUMPTIONS
Number of Pieces Printed
|
20,000
|
Total Cost
|
$2500
|
Response Rate Anticipated
|
2.5%
|
Percentage of Respondents Expected to Purchase
|
25%
|
Average Profit per Purchase
|
$50
|
ACTUAL METRICS
Number of Respondents
|
500
|
Cost per Response
|
$5.00
|
Number of Buyers
|
125
|
Cost per Buyer
|
$20
|
Cost per Printed Piece
|
$0.125
|
Profit per Printed Piece
|
$0.31
|
ROI
Total Profit/(Loss)
|
$6250
|
Total Cost
|
$2500
|
PRINT
MARKETING ROI
|
150%
|
3. Design your printed
materials to track responses. Include a customized coupon, personalized barcode,
or use campaign-specific landing pages or 800 numbers to determine which
customers are responding to which printed pieces.
4. Document how new
customers found you. Train
your sales and customer service personnel to ask how a client learned about you
so you can be certain new sales are a result of your marketing efforts rather
than another factor, such as a competitor going out of business.
5. Recognize that it’s not all about dollars and cents. While some
metrics are black and white, others can only be captured through market
research. For example, you might organize a focus group or survey of those who
received a specific printed piece to measure their recall, perceptions about
your company, and purchase intent resulting from the piece.
These
strategies will enable you to cost-justify your print marketing budget and
focus your efforts where you will receive the greatest returns.
Please give us a call at 440-946-0606
Or visit our website here for more information.
Please give us a call at 440-946-0606
Or visit our website here for more information.
