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INPUT VARIABLES
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Circulation, Audience Size or
Mail Quantity
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Campaign Cost
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Select Media Type (Chose from
list)
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*DMA Study - Response Rate Used
for Selected Media Type (Choose from list)
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Typical Response Rate
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Average Transaction/Sale Value
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Gross Profit Margin %
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RESULTS
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Orders Generated Based on
Typical Response Rate
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ROI Based on Typical Response
Rate
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Breakeven Response Required
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Orders Required for Breakeven
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Deviation from Required Response
Rate & Typical Response Rate to Achieve Breakeven
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Actual Response Rate Deviation
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Percentage Deviation
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Instructions
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This calculator uses
response rates from DMA (Direct Marketing Association) Response Rate Study.
It will compute the breakeven response rate and orders required for your
campaign based on the circulation, advertising cost, average order value, and
gross margin percentage that you enter. You can then compare your campaign's
breakeven results achieved for the media type your planning to use to
industry norms for this type of media. Choose media type, then the industry
average, median, high or low response rate for direct order programs.
The industry response rate that is shown as the "Typical Response
Rate" is intended for comparison purposes only. It is intended to give
you an idea of whether or not the response required to achieve breakeven for
your campaign, based on the circulation, advertising cost, transaction value,
and margin that you entered, is realistic. Your program may do better or
worse than the reported response rates depending on your selling price point
and merchandise being offered.
Use the deviation from required breakeven response rates and typical
response rates to determine just how far above or below your breakeven is
below the industry standards for the typical response rates for these vehicles
/ channels. It will help you determine
if the necessary breakeven response rate is achievable. For example, if you see that the required
response rate is 50% higher than the industry standard, it is highly
improbable that you can reach the necessary breakeven. So, your options to reduce your breakeven and make it more
achievable would including reducing the cost of your campaign, increase the
average transaction value or increase the gross margin.
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© 2018 DWS Associates. All Rights Reserved.
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