If you’re running a direct mail campaign and you’ve seen an increase in sales or leads, it’s easy to assume your campaign is successful. But by taking the extra time to set up detailed tracking methods, you will be able to accurately measure the performance of your direct mail campaigns more successfully than they might appear on the surface.
If you’re not too sure how to track and measure your campaigns or tired of wondering what the ROI of your direct mail campaigns is, you’ve come to the right spot.
Choose Your Direct Mail Tracking Methods
The key to successfully tracking your direct mail is having some sort of point of contact (i.e. phone number, website, coupon code, etc.) on the direct mailing piece that is trackable. You can opt to use on tracking method, or several, to trace the sales/leads back to your direct mailing piece.
Trackable Phone Number
If you choose to track the success of your direct mail campaign via a trackable phone number, you will need to set up a unique number and track it with one of the following ways:
- Set up a dedicated toll-free number that forwards to your business line, allowing you to track how many calls are coming through and your response rate
- Utilize a call tracking software to provide you with the ability to play back any calls you receive as well as reporting and analytics data
- Have your employees keep track of coupon redemptions provided on the direct mailing piece if you opt to use your regular business line
Include a campaign-specific URL on your direct mailing pieces that you don’t share anywhere else. This will allow you to easily to differentiate the traffic from your direct mailing campaigns from the rest of your website traffic in your website’s analytics tool. Create a URL that is short and easy to remember, such as www.movingcompany.com/free-supplies.
If you want to create something a little more personalized than a regular link, create a personalized URL for each recipient, such as www.movingcompany.com/john-doe. When the recipient goes to that URL, they will land on a landing page with content that was created specifically for them.
Include a coupon code on your direct mailing piece that the recipient can redeem in-store, online, or over the phone.
A step above a trackable URL, adding a QR Code to your direct mail piece will bring the recipient to a landing page when they scan it with their phone. This traffic will also be able to be tracked through your website’s analytics tool.
Determine Your Direct Mail KPIs
Before sending out your direct mail campaign pieces, you must identify the purpose and goals of your campaign. This will allow you to determine your Key Performance Indicators (KPIs), which are a simple metric to show how well the campaign is reaching its goals.
Utilize these six direct mail marketing KPIs to measure the success of your campaigns:
- Response Rate. The percentage of people on your mailing list that respond to your mailer through the tracking method you are utilizing. Responses / Pieces Sent = Response Rate
- Conversion Rate. The percentage of people that took advantage of the offer on your mailer. Number of Orders / Responses = Conversion Rate
- Cost per Acquisition (CPA). Also known as cost per order or lead; Tells you how many new orders you need in comparison to the campaign cost. Campaign Cost / Number of Orders = CPA
- Average Order Size. The average amount of income you earn for each sale your mailer generated. Revenue / Number of Orders = Average Order Size
- Revenue per Order. Subtract the CPA from average order size to show how much profit you made from each mailer. Average Order Size – CPA = Revenue per Order
- Return on Investment (ROI). How successful your campaign is overall. (Revenue – Campaign Cost) / Campaign Cost = ROI
Are you ready to incorporate a direct mail campaign into your marketing strategy? Contact Kirkwood Direct to learn more about our direct mail services.