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The Cost / Benefit of VDP
July 23, 2008

Last time we said that each VDP campaign has a cost and a benefit associated with it. Why? Because VDP is a two sided sword.  On one hand it can create more responses, more leads and/or more sales. On the other hand it would be naïve not to recognize the production issues which have to be addressed which can require extra time and money (aka costs).

For example:

• it requires a database
• not all companies have a database meaning that one may have to created from lists which usually results in mixed results
• even with a database, the database may need work
• only about 1 in 10 sales people are interested in selling this service
• and lets not forget the added complexity of mastering the VDP software.

These issues are rarely discussed in public. The only way  I hear about them this is through our NAPL research and the Digital Peer Group I manage. The bottom line is this – when you're considering a VDP campaign – consider the costs and benefits.

If your company has the experience, a good list, along with professional copy and design – the benefits will most likely far exceed the costs. However if you're missing one or more of these critical pieces then the costs may exceed the benefits.

Posted by Howie Fenton on July 23, 2008 | Comments (1)