Tuesday, January 27, 2009

Email Marketing vs. Direct Mail

I know in this tough economic time, many of you are seeking to add new customers and bolster new sales QUICKLY. However, the easiest and quickest sell is not to completely new customers; it's to existing customers for additional services.

Let's look at an example of the possible outcome:

Direct Mail to Purchased List:
$75 (List of 1000 people) + $420 in postage + $460 in printing costs = $955

3% of those 1000 turn into possible leads = 30 - 10% of those turn into sales = 3

3 sales of $2000 average = $6000

30% Profit Margin ($1800) - Cost of Direct Mail Campaign ($955) = $845 Return on Investment.

Permission Based Email (Selling additional services to existing & past clients):
$0 (list of 1000 people) + $0 in postage + $0 in printing costs = $0

6% of those 1000 turn into possible leads (offering services to what they have currently) = 60 with 10% of those turning into sales = 6.

6 sales of $1000 = $6000

30% Profit Margin ($1800) - the Cost of an Email Campaign ($0) = $1800 Return on Investment.

When you compare the two, the possibilities are endless. If you're a landscaper, possible upgrades include mulching, lighting, waterfall, products to take care of their landscape, fertilizing, etc. If your in irrigation, upgrades include new controllers, repair parts, service, and maintenance programs.

Remember, the easiest and quickest sell is to your existing client base.

1 comment:

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