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?_Ciccone: ROI on Coupons

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What ROI can I expect on coupons. And how often should they cross the customers desk.

Thank you
 
Gloria,
That is a pretty broad question. I run 2 types of coupons every month. Direct mail and coupons printed on the bottom of my flier. I usually get a 2% response on my flier coupons and 16-18% on my direct mailers. The d-mails have a better ROI, but without the fliers I am not picking up new customers, so it is really a trade off.
A monthly database mailing sent to all 30-60-90 day customers will give you the best ROI, but those numbers will slowly diminish as you gain less new customers, so one without the other is not such a sound strategy.
What type of coupons were you thinking about?

-Chris
 
To help me out, you are getting a > 15% return on your d-mail. You are talking about your 30-60-90 mail list – correct?

Do you do any bulk mailing to your delivery area?
 
fschmidt99:
To help me out, you are getting a > 15% return on your d-mail. You are talking about your 30-60-90 mail list – correct?

Do you do any bulk mailing to your delivery area?
Click to expand...
Fsch - I am getting well above 15% on my New-30-60-90 day mailers. The best are the 30 day and 60 day though.

I have done 4 bulk mailers in 5 years to test the market. My first 2 were my menus, a coupon, and a short letter talking about monthly events, like live music. I did them 2 weeks apart. After sending 1,000 each time, my response was 0.2%. I got 4 of the coupons back. Very large negative ROI on that one.

My next 2 were directly out of the BB. Mailed to 2,000 addresses closest to my shop. That one had the BB letter offering free stuff, a full color menu with picures, and a $3 off coupon. There again I got a wopping 3 coupons back. This convinced me that letters were not the way to go at all. All in all: 1,000 letters x 60 cents + flier cost+ cost to stuff: $772 spent for a grand total of $75 in sales.

I really can’t figure out why I had such wildy different results with my direct mail post cards than I did with bulk mail letters. My second mailer even had custom printed envelopes with my logo and “coupons inside” written on them, which is close to my post card design.
 
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