2-Step Lead Generation Campaign - Conversion Breakeven Marketing Calculator
This marketing calculator is used to determine the overall profitability of a 2-Step promotional campaign and also the breakeven of the campaign based on the parameters you enter.
A two step campaign involves contacting a prospect via telephone or sending a promotional piece to them via mail or email...Step 1. Step 2 involves sending some sort of fulfillment package or piece to the person who responded to your initial promotion/offer. This fulfillment kit could be some sort of premium, white paper, etc.
The 2nd Step also includes a method for the recipient to respond to the offer and gives the marketer a valid reason for contacting the respondent. The 2nd Step is used as a method of further qualifying and filtering out non-qualified or interested responders. It adds additional costs, but it also produces better quality leads/prospects. A 2 Step campaign is an extremely effective tool for identifying buyers of high ticket purchases.
The total cost for the fulfillment piece includes all of the product, creative, production, mailing costs, etc. involved in getting the package to the respondent as well as any follow up marketing cost such as outbound teleservices to verify receipt of the kit or answer respondent questions. It is entered on a per piece basis (e.g., $14.50 for the fulfillment kit delivered).
If you're not familiar with the conversion stages of a prospect used in this calculator, see the B.A.N.T. Chart for an explanation of this system for defining and ranking the types of prospects and stages in a prospects lifecycle.
This tool will calculate the number of inquiries, leads, opportunities, qualified opportunities, and closed sales needed to achieve the projected response rate that you enter. Once you have entered the response rate, you can use the "Response Rate Adjustment" slider bar at the bottom to fine tune the response rate to determine actual breakeven based on the advertising circulation and costs for the program, the average revenue per transaction, and the gross margin percentage for that transaction that you enter. Breakeven is achieved when the gross profit percentage equals zero.
If you don't distinguish between inquiries and leads, you may select 100% on the conversion rate slider for "inquiries to leads." The calculator will generate the same number of inquiries and leads. The same convention can be applied if you don't distinguish between opportunities and qualified opportunities, you may select a 100% conversion rate slider for "opportunities to qualified opportunities." The calculator will generate the same number of opportunities and qualified opportunities required to achieve breakeven.