Be it to ignite interests in new products, or to expand presence in new markets, direct mails find favor with both start-ups and bigwigs. Direct mail marketing, which involves sending a variety of print-marketing pieces such as postcards, newsletters or sales brochures to a list of clients/ prospects, happens to be one of the most popular advertising medium. To be precise, it is the third largest advertising model after print and television. However, periodic evaluation of your mail campaign is a must to ensure that you are getting the maximum value from your investment. Knowing your return on investment (ROI) is therefore extremely important. It tells you whether the company you have trusted with your mail marketing tasks is on the right track or not. Accordingly, you can insist that it takes cues from successful programs and incorporate a few innovative features to give your campaign a positive twist. You can measure your direct mail marketing ROI in three easy steps:
Step 1: Determine the Amount You Have Already Invested In the Campaign:
You can find out the total amount of money invested by adding up the creative and technical costs of creating all the direct marketing items, and the postage costs of sending them to your prospects’ addresses. Don’t forget to include the fee of graphic designers and the costs of printing in the investment side.
Step 2: Calculate the Money Your Campaign Has Generated:
This step requires you to track sales in real time. Incorporate promotion codes in your direct mails, postcards and newsletters in advance. Ask customers to present the codes at the time of purchasing. This way you can easily find out the number of marketing items that ultimately get translated into sales. Now calculate the total income that your mail campaign has helped to yield.
Step 3: Determine Profit or Loss:
We all know how to determine profit or loss. If your income from the campaign exceeds that of your investment, then you are definitely on the profit side. If subtracting the investment amount from the sales results into a negative figure, then you surely have a negative ROI or in other words, no return on your investment. Let’s explain this with the help of an example. Suppose you have spent 1,000 dollars to create mails, launch the campaign and send the pieces to different clients and prospects, and obtained 1,500 dollars in sales. Then your profit is 500 dollars (1,500 – 1,000 = 500). Apart from a pretty good ROI and a healthy sales conversion, the figure also indicates that your mail marketing partner is definitely doing it right.
If executed properly, direct mail marketing can give a better ROI than the digital alternatives because, at the end of the day, hard print has a personal appeal of its own. No wonder, more and more companies are relying on it to increase their sales. Now that you know how to calculate your marketing ROI, it is time to find out innovative ways to augment your returns. Make sure that your direct mail marketing company leverages a mix of time-tested and off-the-shelf techniques to boost your ROI. If you feel that the ROI is not satisfactory, ask your print partner to grow beyond fancy designs, and incorporate some captivating elements such as a lucrative offer coupled with a deadline to cash in on. A few more elements such as an eyeball-grabbing headline and a clear call to action can also add to your campaign. Work with your marketing partner as a team through every phase of the campaign to ensure its effectiveness.