In Direct Mail 101, Direct Mail Marketing

How to track and measure your direct mail campaign success?

After putting all that hard work into your direct mail campaign, you’ll want to measure your success. Tracking results are essential to determining your ROI. Once you’ve set SMART goals at the beginning of the campaign, you’ll be able to accurately track & measure direct mail ROI and all the data that matters most to you.

The rule no 1 when setting up tracking on your direct mail campaign is to make sure any point of contact listed on your direct mail piece is unique and trackable. Otherwise, you’ll have no way of attributing sales or leads to the campaign.

Here is an overview of tracking methods available to you for measuring your direct mail campaign success.

1. Track and Measure Direct Mail ROI with a Custom Landing Pages

When you send direct mail, you likely include your website’s URL. However, when the customer goes to your site, they hit the standard page. This means their traffic blends with other direct traffic. This makes it hard to tell if the campaign is working. It also makes the experience less personal because there is no special offer on the page. So, rule no 1 when setting up tracking on your direct mail campaign is to make sure any point of contact listed on your direct mail piece is unique and trackable. Otherwise, you’ll have no way of attributing sales or leads to the campaign.

a. A custom URL for your direct mail campaign

A custom URL for your direct mail campaign lets you personalize your marketing. You can create a personalized URL for each customer. These URLs can drive 20-40% more traffic than a standard URL. The page can include their name as a page on your site to make it more personal. For example, business.com/JohnSmith.

b. QR codes

QR codes are another option for custom URLs. They will bring them to their specific page upon scanning. However, they require a smartphone to scan. They should be used in addition to a custom URL.

2. Track & Measure Direct Mail ROI  with a discount code

Finally, you can tailor the page to relate to your mailer. If you promised a discount, you can put the code there. If you had a special offer, you can put the call-to-action on that page as well. This makes it seem more personal and exclusive. Just be sure to make it obvious and easy to claim. You already made them go to your site, don’t expect more work after that!

3. Track & Measure Direct Mail ROI  with a call tracking phone number

Another popular method to track your ROI is setting up a dedicated toll-free phone number that automatically forwards to your business line. When someone calls for your offer, you’ll know that this call comes from your direct mail campaign. Or ask your new customers that visit your store or your practice how they found you. If you are using your regular business phone on your direct mail piece, make sure your staff keeps track of each coupon redemption and the direct mail piece it appeared on.

Read also How to track direct mail response rate and learn from the results

Direct mail KPIs to measure

It’s very important to track every contact data listed on your mailer, so you can accurately measure your response rate. Here are the most important KPIs to measure after putting in place the appropriate tracking methods listed above. 

Response Rate
The response rate is the percentage of people on your mailing list who responded to your mailer through any of the tracking methods you put in place.

Responses / mail pieces sent = Response Rate

After you managed to track and measure your response rate you can compare it against the industry benchmark.  You will often hear that the average response rate is near 2%, but it depends on your offer and the sales cycle of your business. Free offers are the central point of all lead generation campaigns.

Conversion Rate
The conversion rate is the percentage of respondents that answered your call to action. Businesses with quick sales, like a pizza shop or clothing store, can track their conversion rate and response rate at the same time – when someone ordered a pizza or used a coupon in the store.

But businesses with longer sales should pay closer attention to their conversion rate.

Number of Orders / Responses = Conversion Rate

Cost per Acquisition (CPA)
Your CPA – also known as cost per lead – tells you how much each new customer acquisition costs.

Campaign Cost / Number of Orders = CPA

Average Order Size
This number will tell you the average amount of income you earned for each sale your mailing generated.

Revenue / Number of Orders = Avg. Order Size

Return on Investment (ROI)
Perhaps the most important and useful KPI that will give you a clear idea of how successful your campaign was overall ROI.

(Revenue – Campaign Cost) / Campaign Cost = ROI

See also How Much Does a Do-It-Yourself Direct Mail Campaign Cost?

In conclusion,  if your number is positive and consistent, go for it! If you want to optimize your results, we are here to help at each step of your campaign, so call us today.

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