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There�s More to Marketing ROI (return on investment) than Meets the Eye

by: Joy Gendusa

All too often people look at marketing ROI in terms of response rate: in other words, �I sent out 10,000 pieces of direct mail and only got 39 responses which is terrible.� This is wrong think.

When it comes to marketing ROI, you have to realize that the term means Return On Investment and the return is measured in dollars (or your local currency). Let�s say you spend $2,000 to get out a bulk mailing of 5,000 pieces and you get 10 calls as a result. Doesn�t look like much. But of these 10 calls you close 6 and get immediate sales of $12,000. That�s marketing ROI! And that�s not even taking into account the future sales to those 6 new customers. It could add up to hundreds of thousands of dollars.

The same simple mathematics apply to any other marketing efforts: radio ads, press releases or articles in magazines, print ads, yellow pages, web site, etc.

Obviously you need to keep track of response from each marketing campaign you do so that you can weed out unsuccessful campaigns and strengthen successful ones.

Case in point:

Jeff Lee, CFO of a very successful
consulting company, Measurable Solutions, has adopted a successful small business marketing strategy based on direct mail marketing. Key elements are mailing out a newspaper and full color postcards. The design is done in house and the printing and mailing is done by a specialized postcard printing company. In his own words...

�We get our best response from mailing out a newspaper and back it up with postcards. Depends on the postcards. Some postcards have pulled better than others.

�The professionalism of the postcards is something that is effective: it gets attention, it keeps the image that we want to keep, it creates the reach, it creates the response and keeps our leads in a very high range.

�We probably average around 7,500 post cards per week. Out of 7,500 post cards we�ll get in an average of 15-20 leads. Of the 15-20 leads at least a third of them come to our introductory seminar. So say 5 or 7 people show up and they pay $1,700 a piece. Off of that we close a further $30-40,000 for services.

�The money we have put into the postcards is like a drop in a bucket compared to what we get back. We know that the more promotion we send out, the more return we�re going to get. It always works.�

That is excellent marketing ROI.
Measurable Solutions spend about $2,275 for 7,500 full color post cards. That includes printing, postage, mailing (including the mailing list). From that they get between $8,500 and $11,900 in immediate response for an introductory seminar and an additional $30-40,000 follow-up sales.

Spend $2,275, earn $40-50,000. You don�t need to have majored in advanced math and rocket science to work that one out: that is what is meant by marketing ROI!
Results of direct mail marketing vary from business to business but the principle holds and always works: if you send out enough promotion, you will make sales and maximize your marketing ROI. Don�t worry about response rate if your marketing ROI is high.

About the author:
Joy Gendusa founded PostcardMania in 1998; her only assets a computer and a phone. In 2004 the company did close to $9 million in sales and employs over 60 persons. She attributes her explosive growth to her ability to choose incredible staff and her innate marketing savvy. Now she�s sharing her marketing secrets with others. For more free marketing advice, visit her website at

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eMarketing Basics
by: Matt Bacak

eMarketing, commonly known as an Internet marketing tool, refers to 'how' businesses market their services or products online. In this new age of technology, an Internet presence directly affects the success of a business. From an ecommerce site to an informational site, eMarketing begins at your homepage.

Utilize a Website

Every website has one goal and that is to heighten the interest of the reader. For the homepage to be an effective eMarketing tool, web content needs to follow the search engine optimized (SEO) techniques outlined by search engine domains like Google and Yahoo. Once landing on your site, the content will act as a sales letter.

Whether you operate a service or sell products, eMarketing is more affordable than the traditional means of marketing. Over 130,000,000 people surf the Internet daily. It would take a hefty investment to reach this number of people in the more traditional means of marketing.

Producing a website that ranks well in the search engines, will assist you in obtaining more visitors and visitors easily convert into customers at a rather amazing rate.

Cost Comparison

Printing promotional material can be quite costly. With a website, this cost is significantly lower because your site eliminates the need for brochures or an abundance of business cards. Instead of sending a new prospective literature in the mail, re-direct them to your website. It will guide potential customers through the basics of your business.

Studies show that the per-reader response rates of newspaper advertisements are low. This is due to the number of readers that scan over your add that really have not interest in your services or products. Online readers, however, are a direct result of search engines. These people want to know more about your services or products. The likelihood of turning visitors into customers is higher.

Advertising Campaign

With eMarketing, the cost of an advertising campaign is drastically lower. The same rules apply but with less effort. You'll need to locate your target market, address their interest, and show how they can benefit.

Typical, ezines or announcements serve as an eMarketing campaign medium. Utilizing these mediums will improve your online business. Here's how you can get started:

Ezines: Ezines are nothing more than an electronic newsletter. There are several services online that will assist you in writing an ezine. But use caution! It's bad business to send an ezine to someone who hasn't subscribed.

Announcements: Announcements are similar to a press release. Using the electronic transfer of news to an email box, you can announce new events, new services, and new products a lot faster.

Hottest eMarketing Tool

Today, e-books are the hottest marketing tool of the Twentieth Century. Once Internet Gurus grasp the concept of selling their services or products with an e-book, the market jumped. Adding an e-book to your tools of eMarketing is a smart move.

E-books consist of hidden links (as in, not apparent) that the inexperienced e-book reader can't see. These links help promote affiliate programs and sell your services or products. The readers click through the e-book and find themselves at your site.

E-books are an eMarketing medium that needs careful planning. It makes no sense to develop an e-book on dogs if you sell household appliances. To be successful at eMarketing with e-books, you need to write content related to your business. For instance:

� Home Improvement - How to Design a Kitchen

� Accountant - How Small Businesses can Benefit From a CPA

� Web Developer - How a Website Can Help

Bottom Line

eMarketing has saved businesses thousands of advertising dollars. It's an effective marketing tool that every business should take advantage of. With a better understanding of how eMarketing can help improve your business, you can prepare for an eMarketing campaign that will exceed all of your expectations.

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