Postcards from The Marketing Pathway

Marketing Best Practices Blog: The Power of a Penny - and Response Rates: "The other day I was reading an article in the DMNEWs about the power of a penny. Tad Clarke, the editor tells the story of how Columbia House increased the response rate to its advertisements and direct mail offers by simply repositioning their offer.
Columbia House had a great offer. For only $1 plus 86 cents shipping and handling you could get 10 or so CD's. That was a great offer that did extremely well.
Well, the smart folks at Columbia House repositioned the offer so that you could get 12 CD's for only 1 penny plus $1.85 shipping and handling.
That one small change increased response rates by 20 - 30 percent.
It's interesting because the respondents were still paying the exact same amount, $1.86, but because of its repositioning to a 1 penny offer, the company increased its revenues by over 20%.
It just goes to show you that Dan Kennedy is right - - marketing is only two things, 1) human behavior, and 2) numbers."

# posted by Doug Hudiburg @ 4:24 PM