Increase Response Rates With Premiums
Over the years in our insurance business we have offered a variety of rewards (premiums) to entice people to respond to our direct mail campaigns. We have given away everything from crisp new $2.00 bills to accident kits that included a camera, pen report form, whistle, etc. Some direct response advertisers say that simply by including a premium it has increased their response rate by more than 30%.
A key to using premiums, however, is to offer something that is inexpensive for you to purchase, but has a much higher percieved value, or retail value. For example, our accident kit only cost us about $5.00 but the retail value was over $20.00. We were also able to purchase some nice artifical leather sports bags for $5 and they had a much higher percieved value as well.
The downside to obtaining the type of nice premium gifts I’m suggesting is that you often need to purchase large numbers (500+ minimum). That can be rather expensive for a small business to handle, especially if you want to do it on a regular basis. However, if you share the cost with a number of other business owners as we have, the total investment becomes very reasonable. A good source for premium products can be found at www.globalsources.com.
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