Retail Credit Card Trends

							Direct Mail Campaign - Retail Credit Card Example


                                          Number who                Transactions      Spend per
                          Customers        shopped    Response Rate per Shopper      Transaction
Total Mailed Group             15,500           9,491       61.23%            2.04          19.19
Coupon Used                                     1,939       12.51%             2.6          18.37
No Coupon Used                                  7,552       48.72%            1.89          19.55
Control Group                     5,000         2,863       57.26%            1.89          11.69

Averaged mailed customer increased their spend by:         $         11.32
This represents an increase of:          89.52%
The net result is         $     175,525 of additional revenue


ROI = (Incremental Revenue - Incremental Cost) / Incremental Cost


Calculating Incremental Revenue
                          Spend per
                          Customer         Customers            Revenue
Mailed                  $       23.97           15,500    $        371,600
Control                 $       12.65            5,000    $         63,250
Incremental             $       11.32           15,500    $        175,525
Gross Margin (@28%)                                       $         49,147
Total Cost of DM                                          $         22,500
ROI =                                                                 118%
                            Revenue per
Spend per                     mailed
 Shopper    Total Revenue    Customer
      39.15 $      371,600 $       23.97
      47.77 $       92,620
      36.94 $      278,980
      22.09 $       63,250 $       12.65