Count how many recipients of your direct mail reply to your offer. The benchmark response is 2-4%. However, it can vary greatly on the product or service you are promoting. A high-margin product may only require a few responses, whereas, as small-margin items may require a 10% or more response to break even. To figure your break even point, (1) Determine the cost of your direct mail campaign; (2) Determine the average profit each converted recipient will bring in; and finally (3) Determine how many potential customers you will need to convert to pay for the campaign.
Direct mail (and email) is a great way to get an immediate response to a marketing campaign. By following these 5 steps, you will gain understanding on what is effective with your target market.
Direct Mail That Works
Know Your Target
Get Personal
Make it Worth Their Time
Repeat Your Message
Measure Results