Got Your Hypotheticals MoJo Working?

By | November 5, 2010

One of the great things about covering 1:1 printing is the plethora of case studies available. Want to provide an example of how 1:1 printing helped someone else in your prospect’s vertical? You can practically throw a dart and find one. But what seems to still be missing are hypotheticals.

Hypotheticals help prospects and clients do more than envision a campaign’s success. They help them put real numbers to these successes and understand the dynamics of why they work. Hypotheticals help your prospects look at 1:1 printing in a way that makes practical, on-the-ground dollars and sense.

Let’s look at two very simple hypotheticals.

Hypothetical #1

Print Run $ Per Piece Total Production & Mail Cost (incl. $.26 postage) 1% Response Rate, 50% Conversion Revenue ROI
5000 $.15 $3050 25 responses $7,500 2:1

In this hypothetical, we’re looking at a 5,000-piece static run. Assuming a traditional 1% response rate and 50% conversion rate (which is high, but this is just an illustration) and without including any of the associated campaign costs like lists and design, you’d get an ROI of 2:1 at $7,500 in revenue.

So what happens if you personalize the mailing instead? Let’s say you spend $1 per 1:1 mailer and achieve a 12% response rate.

The card might say something like,

<<Name>>,

Why walk <<distance>> to your gym when you can walk right around the corner? Bob’s Hot Bodies Gym has everything you need to tone up and muscle out, but it’s around the corner and has super-early hours to better fit your schedule.

Check us out and get a 10% discount on your first year!

Hypothetical #2

Print Run $ Per Piece Total Production & Mail Cost (incl. $.26 postage) 12% Response Rate, 50% Conversion Revenues ROI
5000 $1.00 $6800 300 responses $900,000 13:1

At a 12% response rate, that’s 600 people coming to visit the gym. If even half of those convert, you’ve just blown your ROI out of the water—13:1.

Are these real numbers? No, they aren’t. But what they do is give your customers and prospects insight into why these campaigns work and why they’re worth spending the extra money.

Think of it like a car show where they let passersby look under the hoods. It’s one thing to tell someone a car accelerates 0–60 mph in 6 seconds. It’s quite another to let them look under the hood to see why.

It makes me wonder why we don’t see more hypotheticals out there!

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3 thoughts on “Got Your Hypotheticals MoJo Working?

  1. Clay Forsberg

    Nice post. It’s just too bad we are still trying justify the advantages of marketing “the right information to the right people at the right time.”

    I write this as I look a the stack of circulars that fell out of my newspaper.

  2. Heidi Tolliver-Nigro Post author

    It makes me wonder how advances in inkjet will ultimately impact the newspaper market. Maybe we’ll never see the days of the 100% personalized newspaper on our doorsteps, but certainly it’s reasonable to expect to see more microtargeting to help with that circular volume!

  3. Rob Wainer

    I think your math is off a little – 300 responses at 300 dollars each equals 90,000 dollars. The ratio would remain the same. 1:1 will slowly make its way into the mainstream-I just received holiday catalogs with personalized covers and discount store coupons.

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