How to Track and Measure Direct Mail Campaigns

Direct marketing is one of the most effective ways to promote your business and attract new customers.

Direct Mail offers the opportunity to target your marketing campaign to specific areas and demographics, thus improving your chances of obtaining leads and conversions.

Like any promotional activity, it’s important to know just how effective any given campaign might be. This allows you to determine your current return on investments, as well as the areas you need to tweak to make subsequent campaigns even more successful.

Tracking Your Direct Marketing

Before you can measure your campaign’s success, you need a way to track the results. Any direct mail you send to prospective customers should include a unique point of contact, so that it can be distinguished from regular foot or web traffic. This could be a dedicated phone number or email address for enquiries, a website URL or scannable QR code that leads to a unique landing page, or a physical coupon to be redeemed instore.

Knowing Your Goals

Before you can determine the success of your direct marketing campaign, you need to establish the purpose of your marketing literature.

It could be to increase brand awareness, generate leads for new business, or increase sales and company revenue. Different goals require different ways to measure success.

Measuring the Success of Your Direct Marketing

There are several Key Performance Indicator (KPI) that you can use to determine the success of your campaign. Six of the most useful are:

Response Rate

Conversion Rate

Cost per Acquisition

Average Order Size

Revenue per Order

Return on Investment

Response Rate

This is the percentage of recipients who responded to your campaign literature, based on the tracking data obtained above. Divide the number of responses by the number of marketing items distributed and multiply by 100 to get your percentage response rate.

Conversion Rate

Conversion rate shows the number of respondents that go on to place an order. It is calculated by dividing the number of orders by the number of respondents and multiplying by 100.

Cost Per Acquisition

However many new customers you make from your campaign, your CPA will tell you the approximate cost per client. Simply divide the campaign cost by the number of customers obtained.

Average Order Size

This KPI is simple to work out, though it may take time to obtain all the data. Divide the total revenue from the campaign by the number of orders received to determine.

Revenue Per Order

By subtracting the CPA from your average order size, you can work out the revenue you are likely to make from each order.

Return On Investment

ROI is widely regarded as the most effective indicator of marketing success. Divide your total campaign revenue by the cost of the campaign itself and multiply by 100 for your percentage ROI.

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