When it comes to increasing response and conversion rates, personalized communications are a powerful tool. However, don’t think that all personalization is equal. It isn’t. To get great results, you must use the right variables with the right audience in the right way.
Response rates for personalized mailings can vary widely. One study found response rates ranging from 6% to 75%, with an average of 21%. These are some eye-catching numbers, but why is the range so wide? To understand the variation and set realistic expectations for your own campaigns, it’s helpful to ask specific questions.
• What type of campaign was it? Customer acquisition? Customer retention?
• What kind of list did you use? Highly targeted, moderately targeted, or undifferentiated lists will yield different results.
• Did recipients have a previous relationship with your company? Or are you using a prospect list?
• What is the value of the product? Are you marketing a webinar or selling a Tesla?
• Did per-order value go up with personalization, and if so, by how much? A “low” response rate combined with a high per-order value will often net you better ROI than a high response rate with low per-order value.
• How are you measuring success? Response rates? Conversion rates? Cost per lead? Average sale? Each measurement tells a different story.
The answers to such questions can have a dramatic impact on understanding ROI. So before setting your expectations for your next personalized mailing, talk to us about your goals, expectations, and the data you are working with. Setting realistic expectations is a critical component to making your 1:1 print program a success.
November 26, 2018