Breakeven Analysis Report

The Breakeven analysis report determines when the net profit generated by a segment exceeds the cost to send a marketing effort to the segment. For marketing efforts, a review of the Breakeven analysis report shows how a segment performed relative to its peers.

To run the report, select Breakeven analysis under Reports on a marketing effort record. The report appears.

The Effort field displays the marketing effort. To search for another marketing effort to analyze, select the binoculars. A search screen appears.

To calculate the Breakeven (BE) figure, the program uses the following calculations:

(cost per piece)1 / (net profit from a single sale)2

  1. Cost per piece. The cost per piece from the Package for a given segment.

  2. Net profit from a single sale. Donation Amount - (cost per piece + fixed cost per piece3)

  3. Fixed cost per piece. The Fixed Cost from the Mailing Budget / Total number of Offers for the Breakeven index (BEI)

[(Response Rate1 - BE2)] * 100

  • The segment Response Rate. Number of responders / Number of Offers

  • BE. The Breakeven calculated above.

Results:

  • > 0: The segment made money

  • 0: The segment broke even

  • < 0: The segment lost money