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Telephone Marketing Pulls the Best, Pays Off the Best

      A 2004 Response Rate Report, recently released by the Direct Marketing Association, concludes that telephone marketing has the highest ROI index, with 18.2, for marketers driving direct-order purchases. It is followed by e-mail, dimensional mail and direct mail. In terms of response rates, telephone is the leader this year as it was last year at 5.73 percent.

     John A Greco, Jr., President and CEO, the DMA, says "Changes in the marketplace, coupled with database technology, ...have led to a broadening of the overall multimedia usage and direct marketing techniques."

     According to the report, on 1.406 campaigns from 25 industries using 12 different media:

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Telephone, dimensional mail, e-mail and coupons provided the best response rate results for generating leads.

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Dimensional mail pulled the highest average response rate for store traffic, followed by telephone and catalog at about half as good.

Media                 $Rev/Contact      Promo Cost/Contact      Avg Resp Rates       ROI Index

Telephone                    $45.37                           $2.50                              5.78                        18.2

E-mail                            $  1.60                           $0.10                              1.12                        16.0

Dimensional Mail       $14.16                           $0.91                              2.30                        15.3

Direct Mail                  $11.36                           $0.56                              1.88                        14.9

Newspaper                 $  0.45                           $0.05                               0.09                        8.80

Coupons                     $  1.50                           $0.23                              1.65                        6.50

Catalog                       $  1.48                           $0.69                               2.18                        6.40

Inserts                        $  0.49                           $0.14                               0.45                        3.50

Magazine                   $  0.22                           $0.11                               0.13                        2.00

PSIs                            $  0.12                           $0.07                               0.13                        1.60

Radio                         $  0.08                           $0.07                                0.10                        1.20

DRTV                        $  0.02                           $0.03                                0.04                        0.70   

Source:  Direct Marketing Association, 2004

Article reprinted from January 2005 issue of "Souvenirs, Gifts & Novelties" Magazine, page 146

 

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