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If you mail 100,000 postcards at $.25 each (including postage), that’s a project cost of $25,000. If that campaign achieves a 1% response rate, that’s 250 leads at the cost of $100 per lead. On the other hand, if you mail 25,000 personalized mailers at $1.00 each, that is still a project cost of $25,000. However, if you achieve a 12% response rate, that’s 3,000 leads. Now your cost per lead drops to $8.33!

• CPS (cost per sale). Not all leads translate into sales. To find out what it costs you to actually close ways to make money from home a sale, divide the number of people who make a purchase into ways to make money from home your total costs. If only 33% of respondents to the above campaign make a purchase, for example, your cost per sale is $300 for the static campaign, while for the personalized campaign, it is $25.00.

• LCV (lifetime customer value). The value of the sale often goes beyond the initial ways to make money from home purchase. If personalized communications woo the buyer of one automaker to ways to make money from home another, and if that customer becomes loyal to that brand, the return on investment from that mailing piece includes the ways to make money from home value of every car purchased by that customer over his ways to make money from home or her lifetime. This is an important metric for marketers of long-term purchases, such as automobiles, financial products, and insurance.

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