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Direct Mail Response Rate

If you are planning to use a direct mail marketing campaign, you will have to do some calculations. Oftentimes, it can be difficult to calculate the response rates especially if there is no specific context.

Sales forecasts should be carefully determined. If you can prove that the response rate is quite reasonable, then you can proceed with the direct mail campaign.

Calculating Direct Mail Response Rate

Business owners should be very careful with their marketing efforts. Any marketing campaign should be assessed prior to launching to ensure success or else all efforts will be wasted. Oftentimes, it can be difficult to calculate the response rates especially if there is no specific context. Some entrepreneurs are disappointed with 1% to 2.5% response rates but did you know that some businesses are contented with a 0.2% response rate? Now, this will depend on the industry that you belong. For instance, if you’re offering Lear Jets and you only have a 0.2% response rate. You’re able to sell 2 jets for only 1,000 postcards that sound reasonable right?

Sales forecasts should be carefully determined. The first thing that you need to do is to get the breakeven rate. This will refer to the needed customers that should buy to cover the campaign costs and still gain profits. When you arrive at a very high rate, you will need to reconsider. You have to choose other ways that can cost you a smaller amount to get to the customers or one option is to lower the cost of the direct mail campaign. In order to effectively test the response rates, you will need to start with smaller campaigns. Overinvesting in bad campaigns can be a real headache. When get ideal figures, you can now increase the direct mail you send out. However, if the response is too low, you might as well do some tweaks here and there so that customers will be attracted to your products or services.

A Great Strategy to Use

Experts claim that if you want to succeed with direct mail marketing, you need to start with a small list of customers instead of larger lists. With a small audience, you can send out direct mail repetitively. If you fail in your initial attempts, you will not succeed in your next attempts. Make sure that you perfect the first direct mail campaign before you can increase the number of recipients.

Try to limit your expectations to a reasonable extent. This is very important if you want to make optimistic forecasts. Determining the direct mail response rate is very important prior to the launching of the direct mail campaign. Keep in mind that you’re going to spend for the campaign so you might as well invest on the right marketing tools. If you can prove that the response rate is quite reasonable, then you can proceed with the direct mail campaign.

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