ROI: What to Expect for Your Direct Mail Marketing Campaign

While digital solutions have primarily replaced their analog counterparts in business, as in many aspects of life, there are still some benefits in taking advantage of more traditional methods of getting things done. For example, even in the face of email, private messaging, and phone texting, direct mail campaigns are still viable for getting your message out.

Even though bulk email is substantially cheaper and can reach a far wider audience for a fraction of the cost of sending “snail mail,” the data shows that direct mail marketing retains a high response rate and a healthy rate of return. In addition, studies show that direct mail can generate a return on investment (ROI) of as much as 29%. So, while direct mail is second on the list of most effective marketing approaches, traditional mail marketing is still a viable solution.

What Role Does ROI Play in Marketing?

Return on investment refers to the difference between how much revenue a marketing campaign generates and the outlay of funds spent to carry out the campaign. You gain a positive ROI when your marketing earns more money in sales than you paid for the campaign, and you make a negative ROI when things go in the opposite direction. The goal is to use marketing strategies that generate the highest ROI possible.

Different Campaign Strategies

Not all direct mailing campaigns are the same. A common strategy is to mail to all addresses within a given area, called Every Door Direct Mailing (EDDM). The upside of EDDM is that there is no need to purchase a mailing list. However, as much as 10% of the mailing will never reach human eyes since many addresses are unoccupied homes or businesses. Others are wrong addresses, or the mail cannot be delivered because of do-not-mail lists. Because this is not a targeted mailing, this method is best for campaigns that appeal to a broader audience, like opening a retail outlet or eating establishment.

A better approach is to use a smart saturation mailing, which does not mail to that 10% of “bad” addresses, thereby improving the ROI by sending fewer wasted letters. This method allows for a certain amount of basic targeting by eliminating some addresses, such as income level, age, marital status, and the number of children. The narrower your product or service’s appeal range, the more you will want to target your mailings.

Limelight Direct Mail Marketing

Need help with your next direct mail campaign? Limelight Direct Mail Marketing can help you determine the most effective strategy for conducting a direct mail campaign anywhere within the Carolinas. So call us at 919-452-5418 to find out how you can get your message out today!