- Catalog drives $7.09 net sales for every marketing dollar spent.
- E-Mail drives $57.25 net sales for every marketing dollar spent.
- Online Marketing drives $22.52 net sales for every marketing dollar spent.
|ROI Comparison, Catalog, E-Mail and Online Marketing|
|Circulation / Searches||100,000||100,000||225,200|
|Response / Conversion||5.32%||0.17%||7.50%|
|Average Order Size||$100.00||$100.00||$100.00|
|Less Variable Expense||13.0%||$69,128||$2,233||$219,570|
|ROI per Direct Magazine||$7.09||$57.25||$22.52|
Given the return on investment stats in the article, and an assumed cost of $0.003 per delivered e-mail, the same circulation of 100,000 customers results in catalog driving thirty times as much sales volume as e-mail. The same assumptions results in online marketing driving ninety times as much sales volume as e-mail. You can use this template to plug in your data, your assumptions, and see how your story turns out.
I think it is important to see a variety of ways of analyzing data. It is important that you develop a balaned approach to understanding ROI. The Direct Magazine example, and this example, provide two opposite, but appropriate, ways of measuring ROI.