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Direct Mail Return On Investment And Response Rate

Posted: 14 June, 2018

Calculating the return on investment of marketing activities is the Holy Grail of marketing measures and direct mail is no different than other marketing channels when it comes to the importance of getting a decent return on your invested time and money.

While each business will have different KPIs to look out for, achieving a high response rate on your direct mail marketing is crucial. The ROI on your direct mail will correlate closely with the response rate on your campaigns. Factors like the quality of your data, your creative and your offer will become essential for a high response rate and improved ROI. Most of all, targeting the right person with the right message and offer will generate profit and a good ROI.

You probably already have a database full of leads, and you want to convert them into new (or returning) customers. In that case, direct mail is a very attractive marketing channel. The response rates to letters are typically 30 times better than email response rates (Market Leader, Quarter 4, 2014), more than 92% of direct mail is opened (on average, direct mail is revised for four times or more) and 31% of UK adults took a commercial action after receiving direct mail last year, of which:

• 14.2m bought something
• 10.5m used a voucher or coupon
• 2.8m tried a new product or service
• 3m made an inquiry by phone

(Royal Mail)

Data Cleaning & Data Segmentation For Successful Direct Mail Advertising

To achieve a fruitful return on investment, you will have to consider your target market and follow what the data tells you. Remember that successful direct mail campaigns occur when their messaging and target market align. This is where our advanced analytical skills and data analysis come in: we can help you clean up and segment your data and advise on the best and most relevant use for it.

Essentially, we will drill down and find the information that has the most actionable value for your business. Our suggestions will help lay down the foundation of your direct mail campaign. From there you can decide on the offers, messaging, and creative design you want to use.

After this, the response rate and the return on investment of your direct mail campaign will show you how valuable direct mail is for your business and give you ways to learn valuable insights and prepare for even better direct mail campaigns.

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