One of the first things I say whenever I sign a new customer up for a postcard marketing program is that we’re not going to mail 1,000 postcards and get 1,000 phone calls. That’s just not possible! If your company wants to grow and find new leads, the best thing is always to test and test again. Thomas Edison famously said, “I have not failed, just found 10,000 ways that didn’t work.”
I believe the same is true in marketing – I do it in my business every month.
A lot of the time, someone will call me and mail 1,000 postcards. They’ll send it just one time and maybe get a call or two from the process. They look at it as a complete failure.
Printing and mailing 1,000 postcards on average will cost about $450. When you look at your average customer, what do they spend in a year with you? Do you know your customer lifetime value?
Let’s say the average customer stays with you for three years and your widget costs $350. Client X will spend $1,050 with you over their lifetime and he still only cost you $450. And hopefully you’re still working your leads (Because don’t forget, they have interest in your product or service!) and potentially close both callers and now your clients lifetime spend is $2,100 on that original $450.
Let’s change the number to 5,000 postcards, which on average would cost about $2,000 to mail. Of that you get maybe 15 phone calls, and you’re able to sign up six of those callers for your service. Now you say, only 15 calls from 5,000 postcards – but yet you make $2,100 the first year on just those six and then the next year you make another $2,100, oh and the average is three years so that’s $6,300 revenue on a $2,000 postcard campaign! Again, doesn’t even consider the fact that you’re still working those other 9 that didn’t buy from you the first time through!
That’s how a proper ROI is calculated!
Postcard GR has been helping companies all over West Michigan find the leads they need to grow by using targeted postcard marketing campaigns.