Basis Points

One of the most common metrics of results used in direct marketing is a response rate, which is expressed as a percentage. Since talking about small changes in percentage points gets awkward fast, sometimes the language of banking is used.  A banker would say that a movement of .9% represents 90 basis points.  So we can translate a difference in response rates of .9% into 90 basis points. 

Said another way:  100 basis points equals 1%.  Or just take the numbers after the decimal point (.9 in our example) in the percentage and multiple them by 100 to get to basis points (90). 

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Related posts:

  1. Offer
  2. Package
  3. Media Mix
  4. Frequency
  5. Recency of Last Purchase

Related posts:

  1. Offer
  2. Package
  3. Media Mix
  4. Frequency
  5. Recency of Last Purchase
 
May 5, 2004 · Shortlink: http://openmk.co/o
In category: glossary
 
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