Strategy What You Need to Know About Promotional Offers
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The chart shows that you need a $1.25, or 25 percent, increase in the revenue per catalog (RPC) mailed, which is a reasonable expectation for a first-time, free shipping offer to a zero-to-12-month housefile. I've seen a first-time, free shipping offer increase the RPC by as much as 50 percent. You're thinking, "Wow! Let's offer free shipping to our 'best' customers." But keep in mind, repeated use of free shipping will condition customers to wait for the next offer. Moreover, results will decline due to overuse. And finally, use of a free-shipping offer can significantly impact your next mailing results, because the offer is generating demand early in the customer's buying cycle.
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- Companies:
- Lett Direct Inc.
- People:
- Stephen R. Lett Promotional
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