HBR Study Finds 28% Lift in Sales and 600% ROI by Adding Print Catalogs
In a large-scale field study conducted by Harvard Business Review, a luxury e-commerce retailer found that by adding print catalogs, it increased sales by 28% and inquiries by 77%. It also yielded a direct ROI of 600%.
According to the report:
A quick ROI calculation indicates that a 15% increase in sales on an average order size of $6,700 due to the catalog campaign, at approximately 30% gross margin, translates to an additional $90 profit (or $180 additional annual profit) per customer. The average cost of the mailing with front-end design cost factored in is $5, yielding a direct ROI of 600%, not to mention the additional customer engagement from increased inquiries. If this campaign [were to be] instituted across the entire customer base, similar response rates would result in an incremental annual profit of over $5 million, a boost of 40% from its current profit level.