Strategy: Promos: What Really Works?

Response Rate vs. Order Size
Which is better from the chart below, offer A or B? The results are identical in terms of the sales and RPC. But the response rates and average order sizes vary. An operations person might prefer A since there are fewer orders to pick and pack.

Offer B is better from a marketing viewpoint, however, because higher response rates put more buyers in the 12-month bucket. So increasing the average order size isn’t as important as increasing the response rate. Therefore, you shouldn’t structure offers to increase the average order, because that generally comes at the expense of response.