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Q: E-commerce conversion rates from offline marketing ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: E-commerce conversion rates from offline marketing
Category: Business and Money > eCommerce
Asked by: mistermagoo-ga
List Price: $100.00
Posted: 09 Sep 2004 10:25 PDT
Expires: 09 Oct 2004 10:25 PDT
Question ID: 398918
I am looking for conversion data for offline advertising into online
sales. Specifically if we run an offer or discount in-print or through
direct (postal) marketing, we can then expect a % of the readership to
visit the website, and then a % of these to follow-through to a final
purchase. i appreciate that the details of the offer & site will
matter, but I am looking for some qualified rules of thumb on what the
conversion rates might be, supported if possible by actual examples.
Answer  
Subject: Re: E-commerce conversion rates from offline marketing
Answered By: belindalevez-ga on 11 Sep 2004 07:45 PDT
Rated:4 out of 5 stars
 
<1. How many people will visit a website in response to offline advertising?

A study by Maddox and Mahta (1997) found that web addresses in
advertising are noticed by 83% of those surveyed and of those 83%,
some 13% also visited the website afterwards.

Maddox Lynda M., Darshan Mahta et Hugh G. Daubek (1997) « The role and
effect of Web
addresses in advertising » Journal of Advertising Research Volume 37, n°2 
March-April, pp. 47-59
http://www.vlerick.be/research/workingpapers/vlgms-wp-2003-04.pdf


According to a survey by RedSheriff, over half of all users surveyed
had visited a website as a result of offline advertising.
http://www.redsheriff.com/us/news/news_3_75.html

A Web Site Benchmarkeing Survey of the Association of National
Advertisers 2000, found that traditional media (24%) is most
successful in driving traffic to web sites.
http://is124.ce.psu.edu/omr/reports/onlineadtrends.pdf

WebCMO's Online Promotion Strategy Study (1998).
According to the report Unveil the segment structure of the Web
Business Promotion market, offline promotion is among the three most
effective promotion methods in generating traffic and sales. This
article shows a comparison of those who do and do not use offline
promotion.
Of those surveyed 18% found offline promotion very effective.
http://216.239.39.104/search?q=cache:74_iezy4FXsJ:www.webcmo.com/Research/Reports/Go_offline.html+%22offline+promotions%22+effectiveness&hl=en

-------------------------------------------------
2. Conversion rates.
The conversion rate varies by type of business. Conversion Chronicles
has details of the latest conversion rates. These come from Fireclick
Index. They're aggregated from Fireclick's actual Web analytics retail
customers, spanning December 1, 2003, to March 1, 2004:
Breakdown of conversion rates for different types of retail business.
Catalog ? 6.1%
Speciality stores ?3.9%
Fashion/apparel ?2.2%
Travel ?2.1%
Home and furnishing ? 2%
Sport/outdoors ? 1.4%
Electronics ?1.1%
All verticals ?2.3%

According to Online Marketing Benchmarks published by E-consultancy,
conversion rates for sales/visit (browse to buy) are in the range of
0.5%-8% depending on the sector, target market and quality of the
site.

According to Shop.org the average conversion rate of their members?
websites is about 1.8%.
http://www.conversionchronicles.com/page.php?PageID=41&tracking=conversionbenchleft

--------------------------------------------------------
4. Direct mail
According to the Direct Marketing Association (The DMA  Response Rate
Study), the average response rate for direct mail was 2.61%. Their
site gives a breakdown of the rate by industry.
http://www.the-dma.org/cgi/disppressrelease?article=520

-----------------------------------------------------

4. Case studies.
As these case studies show creative campaigns that drastically
increase response rates.

Does Print Advertising in Publication Help Build Web Site Activity?
For Daily Variety?s Showbiz Expo site, the average number of ?hits?
nearly doubled on days when a print advertisement appeared in the
publication. In particular, the average number of ?hits? is greatest
when the URL address appears in the ad copy.
http://216.239.41.104/search?q=cache:hk9N7pWhz30J:www.cahnerscarr.com/8400.htm+%22print+advertising%22+++website+visited&hl=en&start=1


Zacks.com, a company selling online subscriptions for newsletters on
personal investing tested a direct mailing campaign to get existing
customers to upgrade from monthly to annual. They typically had a 1%
conversion rate using emails. The direct mail campaign resulted in a
3% conversion rate.
http://www.contentbiz.com/bizblog.cfm?ID=43


E-share Technologies.
This campaign was aimed at directors and partner level positions. It
featured an upscale giveaway of two club level seats to The Kentucky
Derby when the prospect visited a dedicated URL. To incite dialog on
the URL, the prospect received a silver mint julep cup for answering a
few short questions, and was then registered for the Derby tickets.
65% of the prospects visited the URL.

Nexchange
A direct, three-step mailing campaign was used.  The first mailing was
a  four-color mailing tube containing a toy parachute and digital
audio chip.  A $30 online gift certificate enticed prospects to a
dedicated URL for each of the three mailings.
16% of the prospects visited the site.
http://www.grizzardpg.com/work.html

A campaign that featured a humorous song sent to marketing directors
resulted in 49.3% of recipients visiting the Harpell?s Web site. Of
those who visited the site, 4.4% downloaded a white paper.
http://www.findarticles.com/p/articles/mi_m3815/is_10_13/ai_77853566

A direct mail postcard campaign resulted in a 30% response rate.
Visitors to a url were given the chance to win a free weekend holiday
or $1000 to spend in Tremblant stores.
http://www.dmn.ca/inthemail/2002/ITM0702.htm

HP campaign resulted in a 9.4% response rate on the direct mail campaign.
56% web ?click through? to customer?s personal URL
31% order conversion rate.
http://h30046.www3.hp.com/casestudy.php?topiccode=20030317_44866_0_121_0_0&pagesite=

Profit Magazine looks discusses the use of online competitions.
According to New York-based Jupiter Communications, online contests
are among the fastest-growing online activities. What's more, nearly
half of all American Net users (49%) have entered an online contest.
http://www.profitguide.com/magazine/article.jsp?content=250>


-------------------------------------------------------------

<Search strategy:>

<"average conversion rate">
<://www.google.com/search?hl=en&lr=&ie=UTF-8&q=%22average+conversion+rate%22>

<"visited the website" offline study>
<://www.google.com/search?q=+%22visited+the+website%22+offline+study&hl=en&lr=&ie=UTF-8>

<"direct mail" url visited>
<://www.google.com/search?q=%22direct+mail%22+url+visited&hl=en&lr=&ie=UTF-8&start=10&sa=N>

<"direct mail" url visited campaign>
<://www.google.com/search?hl=en&lr=&ie=UTF-8&q=%22direct+mail%22+url+visited+campaign>

<"print advertising"   website visited>
<://www.google.com/search?hl=en&lr=&ie=UTF-8&q=%22print+advertising%22+++website+visited>


<Hope this helps.>
mistermagoo-ga rated this answer:4 out of 5 stars
A good effort. I'm new to google answers (so my questions can probably
be better phrased) & was impressed with the way you have broken thing
sinto chucks and provided detail on each. Will spend longer working
through your answer now, but many thanks.

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