Responses to direct marketing campaign may include direct sales, appointments with salespeople, and opportunities for future sales. This activity outlines a variety of responses for a direct mail campaign for an insurance company. If you were the manager for the campaign, how satisfied would you be with the following results?
ACTIVITY/TASK
‘Got You Covered’ insurance company sent out 1,000 direct mail letters, at a total cost $5,000 (in order to trial their direct marketing campaign). A summary of the results is as follows:
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(Note: To help you evaluate the results, the company makes $200 profit on each policy sold and the average person remains a customer for five years.)
QUESTIONS
- Outline the mix of responses that the firm received from its direct marketing campaign.
- Which of the responses received would be the most valuable to the firm? Why?
- What was the sales conversion rate of the campaign?
- If you were the campaign’s manager, how satisfied would you be with these results? Would you repeat the campaign?