Re: Response Rates

From: Stuart Hochwert <shochwert_at_myfree.com>
Date: Tue 1 Aug 2000 08:57:11 -0500

JIM CARLINI <carlini_at_nwu.edu> WROTE:
> Following this line of questioning, what should an
> "expected" average of "valid leads generated" be?
> Should it be the same, less, or more than a direct mail
> response (of 2%)? In other words, if I get 500,000
> hits on a website for the month --- how many turn into
> a request, and from there, how many turn into a sale?

First, the 2% response rate for direct mail is a myth.
If you are selling jet airplanes you might be happy
with a .000002 response rate. If you are selling a $10
software package by direct mail (almost impossible to
do) you might need a 5% response rate to breakeven.

That said, use this an example: Banners - you run
500,000 banners. Get 1/2% click through or 2500
visitors to your site. You might get 1 - 10% to take
an action (request a brochure, order something). This
depends on banner creative used, web site design, offer
presented, price, etc.

We ran a campaign for a major "drugstore" site that
offered $10 off first purchase. We had an 8%
conversion, average order $18. We did a program for a
telephone offer last week with a 1.4% conversion. We
have a program for a "free offer" site and conversion
is 23%. It all depends on offer, creative and price,
or lack of.

Stuart Hochwert
shochwert_at_myfree.com
MyFree.com, Inc.
3400 Dundee Road, Suite 236
Northbrook, IL 60062
847-205-9320 Main 847-205-9340 Fax




Received on Tue Aug 01 2000 - 08:57:11 CDT