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Nonprofit Response Rates Soar

 BY KRIS OSER

Direct, Nov 1, 2003

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Direct marketing is now a weapon of choice in numerous industries. The reason is simple: DM performs, according to a study on response rates released last month by the Direct Marketing Association.

The average response rate for the 1,122 industry-specific campaigns that the DMA studied was 2.61%.

Within sectors, nonprofit fundraisers enjoy the most success with direct response, getting rates of 5.35%. Close behind are retail stores (with 3.36%) and establishments selling services to businesses (3.34%).

Manufacturing delivers 3.17%; personal and repair services 3.07%; and travel 2.98%. The two sectors at the bottom of the list — computer/electronic products and packaged goods — still get better than 2% response.

“As the marketplace continues to change — affected by the economy, deregulation, competition and the need to offset expensive advertising campaigns — direct marketing techniques are now being used by a wider spectrum of audiences,” said DMA chief executive H. Robert Wientzen in a statement.

Telephone marketing had the superior response rates among the direct channels studied. The average rate for telephone campaigns is 7.44%, but promotion costs were also higher.

What sectors get the best telemarketing results? Nonprofit fundraisers pull a whopping 19.42%, followed by education (12.46%) and insurance carriers (8.78%).

For direct mail, the overall average response rate (considering mailings to both house and prospect files) is 2.54%. Direct mail produces the best results for packaged goods at 5.36% and store retailers at 4.35%.

The overall catalog media average of 2.41% is just below the catalog industry average of 2.52%. Membership organizations achieve the strongest results with their catalogs (3.20%), followed by retail stores (3.17%).

Overall average industry response for e-mail is 1.88%. Nevertheless, all industries that were surveyed, except real estate, use e-mail in their direct marketing mix.

What categories have the best e-mail response rates? Wholesale trade at 3.83% and manufacturing at 3.39%.

The business-to-business e-mailings get better response because spam is not as much of an issue as it is on the consumer side.



© 2008, Primedia Business Magazines and Media, a PRIMEDIA company. All rights reserved. This article is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, redisseminated, transmitted, displayed, published or broadcast, directly or indirectly, in any medium without the prior written permission of PRIMEDIA Business Corp.

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