Live From DMA05: Telemarketing Gets Best Response

For directly ordered products or services, telemarketing received the highest return-on-investment index at 18.2, according to the Direct Marketing Association’s 2005 Response Rate report, released Tuesday in Atlanta.

The DMA defines its ROI index as revenue per contact divided by promotional cost.

Following telemarketing was e-mail with an ROI index of 16, dimensional mail (15.3), and direct mail (14.9).

Telemarketing also generated the highest response rates for direct orders with 5.78%. Next came dimensional mail with 2.3% and catalogs with 2.18% response rates, respectively.

For lead generation campaigns, telemarketing generated the highest response rates at 5.53%, followed by dimensional mail at 5.28% and e-mail at 3.39%, according to the report.

This third annual report is based on data from 573 direct and interactive marketing campaigns and contains research from 21 different industry categories. Media included were direct dimensional mail, postcards, catalogs, e-mail, banner/rich media ads, search engine marketing, co-op mailings, package inserts, statement stuffers, coupons, telemarketing, newspapers, freestanding inserts, magazine space ads, blow-ins, direct response radio and DRTV.

For store traffic generation, the study found dimensional mail pulled in the highest average response rate at 10.04%, followed by telemarketing at 5.53%, catalog at 4.49% and direct mail at 4.04%. This data comes from seven different campaigns.

The report analyzed data about audience sizes, costs per campaign, numbers of orders and average order sizes. It also reviewed house file and prospect campaign data separately.