Glossary of Sales Terms

R

Response Rate

In order to ascertain the effectiveness of any marketing campaign, certain formulae are used. A 'Response Rate' is generally referred to as  a percentage of  those who replied to X number of mailouts posted, a percentage of those who replied to X advertising insertions, or a percentage of those who bought in to x number of telemarketing calls.  For large campaigns 'Response Rate is measured in % per thousand replies, for Guerrilla Marketing it is measured as an overall % against the actual figure.

Return On Investment

Probably the most important aspect of any business undertaking is the 'ROI' or 'Return On Investment'.  'Return On Investment' is an equation of money invested V profit made.  As an example, if one spends £10k on a Telemarketing campaign that results in £100k worth of sales then this provides a very healthy 'Return On Investment'.  Conversely in one spends £10k in the same way but little or no profit is made, then this would be a very poor 'Return On Investment'.


If you find this website useful, and you require more sales, why not contact the author directly:

Tel. 0870 042 1263
Email: stephen@sl-freelance.co.uk
www.sl-freelance.co.uk
or read my blog at www.freelancetelemarketing.org.uk