Skyrocket Your Conversions With These Direct Mail Apps
What's What in Direct Mail ROI
Direct mail is a force in marketing, even in today's digital economy. (Hint: we’ve writtena lot about direct mail marketing's impact ourselves.) Direct mail certainly has a lot of potential when it’s done right, especially when supported by marketing software mobile apps. The potential reach of direct mail marketing strategy is enormous on its own. Households with a $150,000 receive on average 65 pieces of mail each week, and on average respond to 2.2 of them. According to the DMA, the average direct mail's response rate was 4.4%. With 65% of consumers reporting that they’ve made a purchase as a result of direct mail, it’s no surprise that businesses are still on board with amplifying marketing with direct mail marketing initiatives (it has a much better engagement rate than email marketing ). Addressing and measuring Return On Investment (ROI) for direct mail is pretty simple. It does require though that you think of the outcomes of your campaign in a specific way. Response rate, and customers acquired, is a great way to gauge campaign effectiveness. Remember though that there isa big difference between quantity of responses and the quality of responses. Marketers should emphasize response quality when measuring direct mail ROI, versus focusing solely on monetary gains. Consider this: if you spend $1,000 to reach several thousand potential customers, you may only need a few responses and conversions to break even on your campaign. And with an average response rate of 1-5%, it won't take long for your direct mail campaign to pay off.
You might guess that cost-per-acquisition for direct mailers is on the high end too, given all the physical elements required to carry out the physical direct mail piece. But it’s actually surprisingly competitive to its digital marketing counterparts. Take a look:
Calculating direct mail’s monetary return
Calculating your own ROI is easy. Just divide the results (typically revenue) by the investment (marketing spend). If you're feeling lazy about doing the math, there are plenty of great use ROI-specific calculators out there, too. It's simple to get a handle on your direct mail ROI in before the first postcards even go out. Consider the cost of printing, mailing, and developing the campaign first. If you spend $7,000 to develop your campaign–the human brainpower behind the ideas– another $3,000 to print, and then $3,000 to mail everything out, your total cost would reach $12,000. If your product or service sells for $100, about 120 people (a return of 2%) need to respond for your campaign to break even. Using a direct mailing app can cut these costs. Direct mailing apps bundle design, printing, and list-building (or some variation of the three) onto one platform. Businesses can cut their costs in a big way instead of paying for each individually.
How to maximize return with direct mail apps
There are a huge number of direct mail platforms out there that can help you simplify and save on direct mail marketing. Our guide to real estate direct mail marketers a handy place to start. With the hard stuff covered (like printing logistics, design and mailing lists), you can focus your attention on what really matters: giving your direct mail campaign a fresh new look. Putting in the work on the creative and gathering data on the target market increases both your response and conversion rates. Knowing who the right people to market to matters. With content tailored to your target audience, you increase your chances of response by at least 29%! A number of direct mail apps also have built-in QR codes and customized landing pages. That means you can have real time tracking and campaign measurements right from on mobile device. With the right frame of mind–and perhaps support from a direct mail app–optimizing your direct mail campaign's ROI is easy. You'll break even (and beyond) on your marketing initiativesin no time.