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Measuring lift in direct marketing campaigns.

While most marketers know personalization can increase response rates, it's difficult to project just how high the lift will be. That's because response rates depend on different variables, including timing, relevance, creative, the database and the offer.

Just how much can personalized, relevant direct marketing increase response rates over static direct marketing?

The September 2010 Caslon Response Rate Report was created to help marketers set expectations for the response rates that relevant personalization can provide. The report considers the following campaign types:

  • Lead generation/traffic generation
  • Direct order (including fundraising)
  • Traffic generation
  • Data gathering
  • Loyalty

Personalized is more than variable data printing. Personalized URLs (pURLs) are unique and personalized Web addresses created especially for each recipient of postal or email campaigns. A form of personalization, pURLs can significantly lift response rates for lead generation, direct order and traffic generation campaigns over static response rates, as shown in the following summary from Caslon's research. For comparison, data is provided from the DMA’s 2010 Response Rate Report, representing typical results of static campaigns.

Personalized URL visit and response rates by application

Table 1: Avg. Personalized URL visit rates and response rates by application Application Personalized URL Visit Rate # of PODi Cases Personalized Response Rate # of PODi Cases Static Response Rate (DMA data)
Lead Generation 10.6% 24 8.2% 46 3.4%
Direct Order 13.0% 9 9.8% 19 2.3%
Traffic Generation 21.8% 9 18.5% 28 2.6%
Data Gathering 19.6% 5 18.4% 13 No DMA data
Loyalty 35.9% 3 28.0% 10 No DMA data

Done well, personalized, relevant direct mail will significantly improve response rates over static campaigns. The next time you are considering a direct marketing campaign for your customers, consider including pURLs to significantly increase visit and response rates. Also please consider that the InteliMailer™ is the perfect way to implement a pURL Campaign. 


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