Outside List Optimization: Does it Pay?

A certain level of results will be achieved without optimizing. Let’s say, for example, that an average order size of $60 can generate a 1.5-percent response without the added step of optimization. With optimization, let’s assume the response rate increases to 1.68 percent, generating a 12-percent lift in response. Without optimization, $0.90 per catalog mailed is generated vs. $1.01 per book with optimization. In this example, optimization resulted in an $0.11 per catalog mailed increase. This is the incremental increase associated with the optimization process. This incremental increase needs to be enough to offset the cost associated with optimization. If not, optimization is not cost-justified.