small business marketing

Direct Mail Response Rate


Direct Mail Response Rate Calculating your direct mail response rate is a pretty simple endeavor. Unfortunately, it's easy to run direct mail campaigns in a way that makes it difficult to measure this important statistic.

Here's a simple definition.

Direct Mail Response Rate: The number of responses received from a direct mail campaign divided by the total number of pieces mailed.

Response rate is given as a percentage. Let's say you mailed out 5,000 postcards and the call-to-action was to go to your website to download a free report. Of course, in order to download the free report, you have asked the customer to register with their name and email address. You may have set a deadline for downloading the report. Doing this helps provide a sense of urgency and also defines an end to the campaign. When the campaign is over, you simply count how many people downloaded the report and divide by the total number of postcards sent.

If you had 100 people download the report, then your response rate is 100/5,000 or 2%.

In the above example, It's important that only the people you mailed get the chance to download the report. If anyone can come to your website and download it, then your results will be skewed.

For a targeted direct mail campaign, you should see an average response rate of 2-3%. However, I've seen some campaigns with response rates in the double digits. I've also seen poorly executed campaigns that received zero response. It all really depends on your target market, your competition, your offer, and how well you can communicate to your customer's needs.

Measuring Your Direct Mail Response Rate

The key to any direct mail campaign is to set up an offer that can be measured. If you can't measure it, you have no way of calculating the response rate.

Here are some examples of easy ways you can integrate a measurable response rate mechanism into your campaigns.

  • Unique promotional code (to be redeemed over the phone, on your website or in your retail store)
  • Unique web page URL that normal web users don't access.
  • Mail-in coupon

Of course, a response mechanism doesn't mean much if your offer isn't compelling to the prospect. In 99% of the cases, it's a mistake to go after the sale immediately. You need to warm up your prospects, give them confidence and, most importantly, give them something of value that helps solve an issue. A downloadable report or free product trial are good choices. A discount can also be compelling but be careful about marketing on price alone. Your primary goal is to create value. If you can clearly demonstrate how to solve your customer's problems, you won't need to use discounts.

Here are some additional recommendations to help you increase your direct mail response rate.

Ideas for Increasing Direct Mail Response Rate

1. Find out the types of offers that get high response rates from your website and email program and then translate these into a direct mail campaign. While it's not always the case, an offer that works well on your website will most likely work well when mailed.

2. Use real stamps instead of a postal meter. This will help differentiate your letters from the typical consumer junk mail.

3. Use hand addressed envelopes or post cards. Studies have shown that hand addressed envelopes get a much higher open rate. Check out services like Fasprint, where as many as 250,000 envelopes or post cards can be hand addressed in a single day!

4. Use the recipient's name in the communication. Personalized communications always work better than generic.

5. Use a colored envelope. You can also experiment with envelopes of different sizes and shapes.

6. You've probably heard this before but lumpy mail is almost always opened. If your budget permits, include something fun in the envelope that causes it to bulge.

For a tip on selecting your most responsive house customers, read my article on Strategic Database Marketing.







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All material written by Corte Swearingen
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