How much does a leads cost using Direct mail campaign?
Consumer lead generation
Based upon the data in the 5th Annual ‘Response Rate Trends Report‘ (2007) from the Direct Mail Association 
on consumer direct mailing campaigns:
- Direct mail lead generation campaigns response rate: 4.09 percent
- Direct mail order campaigns response rate: 2.15 percent
The cost to address, produce and deliver thousand targets ranges between $250 and $1,000.
Thus on average it costs about $625,000 to send out a million solicitations in order to generate:
- 40,900 leads having each a cost of $15.28
- 21,500 direct orders having each a cost of $29.07
This data is for the consumer market, where the cost of an address of an individual is significantly less than the cost of a contact person in a business.
Business lead generation
Thus the costs for lead generation in B2B using direct mail campaigns will be significant higher than the $15.28 in Business-to-Consumer market.
The higher price of a lead in Business-to-Business will be in relation with the higher value and the higher margin value of the goods sold to businesses compared to consumers.
As a good estimate we can use the cost of a lead from White Paper Syndication websites, which is typically between $30 and $60.
Although this seems to be high, then compare with the cost of a lead on a trade show, which is at least 10 times higher.
Leads cost comparison
You can download here a cost comparison study between Advertising, Trade show, White paper syndication, Direct mailing campaign, Telemarketing by call center, Cold calling by Salesman, Emailing campaign using landing pages and post-click marketing online solution.
Getting leads from your website is at a significant lower cost as you have already a website with visitors. You just need a service that identifies visitors by company name.
What will you be using in 2009 for B2B lead generation?
More from LEADS Explorer
- Email marketing is not a sustainable model
- How to catch the lost leads of your leaking funnel
- As online advertising is failing: how to get leads now?
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