Return on Marketing

To those doing regular marketing and track your marketing…

The rule of thumb is that if you want to increase X amount in new business you need to spend 10% of X. Are you finding that to be true?

I have been tracking for a few years, there’s a lot of variables, but my experience has seen erratic and inconsistent results, nothing linear at all. Meaning some recent years ive spent more and tried more and got less than other years


Last year hardly did any direct mail was up 35% over previous year when I sent like 50k pieces. There is a randomness

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I don’t know I mailed in the spring and was so busy after that I didn’t want to spend the money on a non guarantee of direct mail. I had like 1500 postcards left over so I mailed the rest in the fall.

Mainly all new people were Internet

I will mail again this year but super targeted I know where I’m going to hone in on.

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I agree with Bruce that there are a lot of variables… but I would say once you have established yourself… the “Spend 10% of expected growth on advertising” is close… I cant say every year we get 10x return on advertising… but its close.

I would say this rule applies to companies who are constantly expanding. I dont think this would work if you are constantly hammering the same customers for years.

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We get return for a couple years out from EDDMs we sent out. I had a post card I sent out my first year in business (Aug 2008) redeemed in 2013. And we are finding out that bigger ticket items like Roof Cleaning, people wait longer (4-6 months+) before they call

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Got a call today based on “years of getting your mailings”

2005 mailed a coupon out, 2009 a woman called and cashed in our our deal. hurt then, but still see her twice a year.

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I usually get hits within the first 2 weeks of mailers true some hold on for a while but most of the action is pretty quick