High ROI

sub banner roi High ROI

Did you know that text messages have a read rate of 95%?  That’s 5 times more than email and 9 times more than direct mail!  Text message marketing also has a response rate of over 20%! Compare that to less than 6% for traditional advertising and imagine the increased sales.

Below we’ll calculate the return on investment on the main marketing avenues.  All the calculations will assume that you have sent the marketing offer to 2,000 people and that the average check for your business is $10.00

Direct Mail

With a generous response rate 6%.  That means you’ll have 120 customers redeem your offer.  That’s an extra $1200.  With the industry average cost of sending 2000 pieces at $800, that’s a 50% ROI.

Newspaper

Newspaper ads with a coupon in them can see results of up to 6%.  That would be 120 customers at a gain of $1200.  With the cost at around $500, you’ll see a ROI of 120% – 140%.

Email

Email will have a high of 3% response rate.  That is if you have a list that you’ve built from customers signing up for information and didn’t buy the list.  The 60 customers who use your coupon will bring in $600.  The good thing is email campaigns are cheap to run.  If you spent $50 for an unlimited service plan, that would be about a 1100% ROI.

Radio/TV

With Radio and TV it’s hard to come up with numbers since they are almost impossible to track reliably.  One thing for sure is that they are both expense running between $500/week for local tv up to $700/week for radio on top of any production costs.

Moto Message

Text message marketing has the highest average redemption rate of any of the above marketing methods at 20%!  Getting your message out 2000 times would cost $139 and see 400 customers bring in $4,000 in extra revenue.  That would be a ROI of 2,800%!

If you know of a way to market and get a better return on investment than 2,800%, or even half that, please let us know so we can use it too!  You might be wondering how text message marketing can get such a high redemption rate, here are some of its benefits:

  • Customers must opt in to receive your offers.  They are already saying they are interested in your product.
  • Subscribers carry around their cell phones everywhere.  Do you carry around coupons in your wallet?  They basically are.
  • With a read rate of 95%, your messages are getting in front of your customers, not thrown in the trash or caught in their spam folder.
  • Your offers can be sent at specific dates and times.  Send them an offer for a dinner special before they get off work and are thinking about what to eat that night.

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