Direct-Response Economics

Proves, before spending, that a response campaign can make money: what each order is worth after every variable cost, how many orders per thousand contacts are needed to break even, which lists and media are worth testing, and how to move from a small test to a full roll-out. Method adapted from Stockwell and Shaw (1994) Direct Marketing Checklists, NTC Business Books, rebuilt for mobile money, WhatsApp, SMS and lead ads, with a data-protection overlay the book lacked.

Use When

• We plan a flyer drop, SMS blast, WhatsApp broadcast, lead-ad, catalogue or direct-mail pack; will it pay?
• The test came back; decide whether to retest, extend, balance or roll out to the full list.
• Our sales team can handle so many calls a week; how many leads and how much media reach do we need?
• Plan how enquiries are handled, what goes in with the order and which back-end offers follow.
• Rate which contact lists and media are worth testing first.

Do Not Use When

• advertising-attribution-and-measurement for multi-channel attribution or incrementality.
• direct-response-funnel-copy or ad-copy-and-hook-lab for the letter, message or ad copy itself; company pricing, margins and accounting go to chwezi-accounting-doctrine.
• Stop if the contact list has no lawful basis for marketing under Uganda DPPA 2019 or the local equivalent; fix consent before any send or spend.