The calculation for response rate in direct marketing


The calculation for % response rate in direct marketing is:

___ a) audience targeted / # of responses

___ b) audience targeted * # of responses

___ c) # of responses / audience targeted

(audience targeted = names ordered, impressions, etc.)

You are projecting that your cost-per-click campaign will have 100,000 impressions, a click through rate of .05%, a cost-per-click of $1.00 and a conversion rate of 10%. The average order is $20. Compute the following:

Total orders _________

Cost per acquisition _________

Cost per click _________

ROI % _________

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Operation Management: The calculation for response rate in direct marketing
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