The Allowable Growth Framework™

A Direct Response System Built Around the Economics

During my career, I developed a way of thinking about direct response that brings the major parts of the discipline together as one process. I call it the Allowable Growth Framework™.

Direct response works best as a complete system. Campaign design, testing, evaluation, rollout, and expansion are all tied together by the economics. At the center is the allowable—the amount we can afford to spend to acquire a customer while still producing the return the business requires. Once that is established, we can plan, test, evaluate, and expand based on what actually happens rather than what we hope will happen.

Much of this thinking came from my years as the P&L executive responsible for marketing directly to consumers. Growth had to be measurable. It had to produce the required profit. And additional capital had to be justified by tracked results by product and customer. That forced marketing, finance, customer behavior, and investment decisions to work together rather than as separate disciplines.

I now apply the same thinking to both B2C and B2B direct response.

The Questions Management Should Answer Before Approving Growth

Before a company commits substantial capital to growth, management should be able to answer some basic questions. What is a customer worth? What can we afford to pay to acquire one? How many can we realistically acquire? How much capital should we commit? Is the market large enough? And is the response required to achieve that growth realistic based on historical results from the target market?

For a new offer, product, pricing change, creative approach, or campaign, there is another practical question: Can we reasonably expect the response and conversion needed to achieve the allowable?

The Allowable Growth Framework™ is designed to answer those questions before major capital is committed. It uses customer economics, historical response, market potential, growth requirements, and required financial return to determine whether a plan is profitable, scalable, and realistic.

My Approach

FROM THE FIELD

When the channel everyone overlooked became the most direct route to the decision-maker

A healthcare organization needed to reach senior executives in a market crowded with digital messages. The assumption was that another digital campaign would be faster, easier, and more cost-effective.

Strategic Advisory Capabilities

  • Direct response growth diagnostics and performance reviews

  • Offer, message, format, and creative-response strategy

  • Acquisition and testing framework development

  • Audience, database, CRM, and targeting evaluation

  • Cost Per Sale, Cost Per Lead, conversion, and capital-allocation decision support

  • Independent guidance across internal, agency, media, production, and analytical teams

INDEPENDENCE STATEMENT

I am not compensated for recommending more media, production, software, or implementation.

My responsibility is to help you decide what the evidence supports.

TESTIMONIAL

Client Perspective

  • “Ted has helped us strengthen our direct marketing practices through improved lead and conversion tracking. He played a key role in shaping our list compilation strategy and consistently advanced improvements in our process and procedures. His depth of experience in direct marketing is rare and provided valuable leadership insight that complemented internal capabilities.”

    — Randy Starnes, formerly Sr. Director, Individual Products, Blue Cross and Blue Shield of Texas

Before You Approve Another Campaign or Test, Make Sure the Strategy Is Sound.

If you are being asked to approve another campaign or test but are not yet confident that the strategy is sound, let’s examine the decision before committing the money.