Direct Mail

1. Who Does It Work For?

Consider three businesses, each trying to find new customers. Each of the three spends £250 sending a mailshot to a list of 1,000 names.

1.1 Safari Travel Ltd sells holidays for £1,000 each, £250 of which is profit.

• If one person books a holiday, the mailshot has paid for itself.

1.2 Sam's Sandwich Shop makes £1 profit on each £2 sandwich it sells. Regular customers spend about £5 a week, generating £125 profit each in a year.

• If the mailshot brings in two new regular customers, it has paid for itself.

1.3 Monogram Mugs makes a clear £5 profit on each set of mugs it sells. But customers do not buy more than one set.

• The mailshot would have to produce 50 new customers, just to pay for itself.