It’s the most common question we get asked…what’s it going to cost?
Well, read on … you might just be surprised as to how low a direct marketing campaign cost can be! There are several things to consider, though the information below will enable you to start thinking about your campaign strategy.
The Elements to Consider
First things first … How do you want to contact your target audience? A mailshot, telemarketing, an email broadcast, or a mixture? If purchasing data to use for your campaign, then additional contact fields (e.g. telephone numbers, emails) may increase the price of the database.
Think about the campaign itself. Are you planning a one-off, or a campaign to run over several weeks / months? Do you plan on using multiple channels – a mailshot followed by a follow-up phone call? If so, you’ll need to co-ordinate resources, i.e. a printer, telemarketing people, an email broadcasting platform etc.
You need to consider your goods / services too and the value of a sale. If a sale brings you in £5, then you might need to make a lot of sales in order to break even. If, however, a sale is more “Big ticket”, then fewer sales will be needed to make a profit.
The price often depends on the volume being taken, with the cost per contact decreasing the more you take. There is also likely to be a minimum volume that you must purchase. For B2B Data, this is usually 1,000 records, though for B2C it may be 5,000. If you want to take fewer than this, or if there are fewer records available, then you will still have to pay for whatever the minimum volume would cost.
The price for standard B2B data is likely to be less expensive if you target Senior Decision Makers. When you start to target specific contacts such as Head of HR, IT Managers, Marketing Directors etc. then these tend to be premium databases, with prices to match. As such, think about who you want to target within a company and ask for options to be advised.
B2C data tends to be cheaper at first sight, though it’s often sold on a “per use” basis. For example, if you purchased a single use licence, you could use it only once. It is likely to decrease in price “per use” the more uses you buy. This differs from B2B, as B2B data is usually sold on a multi-use licence basis. This allows you to use the data repeatedly for a given period of time, usually 12-months.
Using Your Data for Your Campaign
The next consideration is the marketing campaign itself. On top of the database purchase, you must consider the costs associated with each channel. Emails are by far the cheapest to send, followed by telemarketing, with mailing being the most expensive. Print & postage is the big expense with the latter. That said, recent research suggests that direct mail offers the means of generating the highest ROI.
If you are outsourcing any work, such as telemarketing, then additional expenses may be incurred. There are plenty of marketing companies out there who offer fully serviced marketing campaigns, though their prices vary dramatically, so do your research.
Do Your Research
There’s little doubt that a successful direct marketing campaign can deliver tangible results to your business through attracting new customers. The key to ensuring its success though, is in the initial research. Knowing who to target and how to run the campaign before committing to anything is vital. This research will provide you with the information required to judge what method will work best to deliver your goals.
After you have run the campaign, be sure to measure the results to ascertain your ROI. Not only will this give you confidence in the value of a direct marketing campaign, but it will also allow you to tweak future campaigns. Remember, a direct marketing campaign is an investment in your company’s growth!
If you have any questions at all regarding the costs, please get in touch – we’d be delighted to advise you. Alternatively, CLICK HERE to see a list of the prices of some of our more popular databases.