As can be seen in this example,
when a marketer spends exactly the same amount
of money on the value chain areas except data and achieves identical
response and
conversion rates, the TruWealth targeted list is more economical because
only one-
third of the prospects need to be communicated with. This results
in a substantial
increase to your ROI (return on investment) even when factoring in
the premium
priced TruWealth data file.
For example, magazine advertisements can be very costly and you cannot
measure
the results of your campaign; in addition, you are not targeting a
consumer base
effectively. Many magazine readers are not the affluent luxury consumers
you are
trying to target. Therefore, you are spending a large amount of money
and not
getting much return.
If you can target your mailing to the highest average purchasers,
rather than waste
valuable marketing dollars on mailing the bulk of your marketing materials
to
individuals that are less likely to make large purchases, you will
increase the
effectiveness of your marketing campaign and get a better return on
investment.