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Single Variable - Response Rate - Observation Breakeven Sensitivity Analysis Calculator
This tool will allow you to analyze the profitability of a campaign based expected response rate. The breakeven sensitivity analysis computes the revenue and profitability of the campaign at different levels based on varying a single variable, the overall response rate. This tool will calculate the breakeven for any media type (direct mail, print, broadcast, email, internet) as long as the response rate to the advertisement is the same for all media selected.) This is a single variable -- response rate -- analysis tool.
Instructions (Click to Open)
Enter the program parameters for the campaign, product and fulfillment. Most important, enter the minimum response rate that you would expect, then enter the increments for the response rate that you want to test. Enter th the circulation and cost per thousand of the advertisement in that media.
Once you have entered the variables, the results of the analysis will be presented on the “Program Parameters & Analysis" PANEL. You may do “what if” analysis by changing any of the variables for the program, product or media. Enter values wherever you see “Enter Value.” To reset the tools to the initial default values, press the RESET button at the top of any page. Doing so will reset all values to the default. To print or save a copy of this analysis, select PRINT from the File Menu in your browser.
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