|
|
 |
|
|
Even small response rate lifts capture huge profit increases.
The remarkable benefit of stronger advertising—and higher response—is the exponential increase in profits it brings. This 100,000-piece mailing comparison shows how. Except for the response, everything is the same for all three scenarios: $60,000 advertising expense, $300 average sales order value and $80 order margin excluding (or before deducting) advertising expense. Scenario 1 is the ad results before Ad PowerLIFT. Scenarios 2 and 3 are after Ad PowerLIFT strengthening increases the response 25% and 100%.
|
|
|
|
|
Scenario
|
1
|
2
|
3
|
|
|
Before PowerLIFT
|
After PowerLIFT
|
After PowerLIFT
|
|
Response Increase
|
|
+ 25%
|
+ 100%
|
|
Order Value
|
$300.00
|
$300.00
|
$300.00
|
|
All Costs Excluding Adv
|
$220.00
|
$220.00
|
$220.00
|
|
Margin Excluding Adv
|
$80.00
|
$80.00
|
$80.00
|
|
Advertising Expense
|
$60,000
|
$60,000
|
$60,000
|
|
Response Rate
|
1.0%
|
1.25%
|
2.0%
|
|
Orders
|
1,000
|
1,250
|
2,000
|
|
Adv Cost Per Order
|
$60.00
|
$48.00
|
$30.00
|
|
Profit Per Order
|
$20.00
|
$32.00
|
$50.00
|
|
Sales
|
$300,000
|
$375,000
|
$600,000
|
|
Profit
|
$20,000
|
$40,000
|
$100,000
|
|
Profit Increase
|
|
100%
|
500%
|
|
|
