DIRECT MARKETING CAMPAIGNS
How to track your direct mail campaign

Measuring the Impact of Direct Mail Marketing
Understanding how your marketing is performing has become even more crucial with the broadening range of channels and their rapid growth. As marketers navigate the everyday complexities of measuring across different channels and devices, it’s increasingly important to have some sort of tracking framework or metrics in play. This helps to keep things on track and making informed decisions.
Measuring your direct mail usually lags behind digital channels, which people often see as easier to track. However, now more than ever, it’s crucial to dive into and understand how effective your mail campaigns really are. This analysis isn’t just about numbers; it’s the key to making smart investments in this medium. This article is here to offer you practical tips and advice on optimizing your ad spend on mail. From before the campaign kicks off, all the way through, and even after it’s done, we’ve got you covered. Let’s make every piece of mail count!
Metrics for Measurement
For brands getting started with direct mail, there are numerous metrics available to gauge its impact. The strategy you choose depends on your business type, the audience you’re targeting, and the specific action you want your marketing efforts to prompt. To truly understand the whole story, brands need to examine both the direct and indirect results of their direct mail campaigns. It’s not just about the immediate responses but also about the lasting ripple effects that contribute to the bigger picture.
Business metrics
For business metrics, organizations will typically look to measure how a DM campaign affected profit, market share, market penetrations, and sales levels, among others. The marketing department will also take into consideration branding outcomes, such as awareness, consideration, brand perception, and purchase intent.
Response metrics
Individual campaigns can also be measured for response. Businesses will want to measure outcomes such as footfall, leads, acquisitions, booking, and conversions. Marketing departments will likely want to drill down into the mechanics of a campaign to measure reach, frequency, clicks through to websites, and social media engagements.
This can lead to a vast array of measurable insights, however, the combination of branding, performance, and campaign metrics can be confusing. Ensure that you narrow down metrics to those directly connected to the outcomes a business aims to influence.
Three Steps for Accurate Measurement
STEP 1. How to prepare for your direct mail marketing campaign
Accurate measurement requires preparation of clear objectives and a tracking plan – understanding what you’re trying to achieve, how it fits with your overall plan and customer journey, the costs involved and what you will need to know about your business to properly measure and prove its impact.
1 Set key KPIs and make them SMART – Specific, Measurable, Achievable, Realistic and Timely.
Example: Create a recruitment program to increase uptake of new customers by 5% above market growth over 2 years.
2 Understand your key metrics – what are the specific metrics most important to your business? AOV, CLV, order frequency, rate of return purchase, donations, appointment attendance? See How to measure your DM campaign.
3 Understand your marketing costs – print, post, production and data.
4 Choose your tracking mechanics – what are the mechanics you will use to track response to your DM campaign? See How to track your DM campaign.
5 Complete ROI scenario planning – use the above metrics and your previous experiences to set realistic payback / profit / success expectations.
STEP 2. How to track your direct mail campaign
When planning your campaign, it’s key to offer a range of response options to suit everyone’s tastes. We all have our preferred ways of reaching out, so it’s no surprise that some folks might not jump at the chance to respond to the mechanics included in your direct mail pack or cash in on incentives.
That’s why it’s important to get to know your audience and mix things up with both direct and indirect response methods.
By doing so, you not only cast a wider net for engagement but also make it easier for folks to connect with you in the way that feels most comfortable.
So go ahead, be flexible, and watch those responses roll in!
- Coupon / promotion codes – A unique redeemable incentive linked to your mailing
- Bar codes – Perhaps specific to a store or outlet
- QR codes – Leading to unique landing page or site address
- Telephone numbers – Use unique call & text message tracking numbers for specific campaigns or regions
- Address match back – Pairing mailed addresses to new / responding customer addresses
- Control groups – Tracking sales or behaviour changes between groups of customers or stores exposed to marketing and those who were not
STEP 3. How to measure your direct mail campaign
Think about what role mail will play in your organization, how it supports the customer journey, and measure it accordingly. Not every metric may be impactful or important to your business.
- Response rate – How many customers reacted?
- Conversion rate – How many customers followed your call-to-action?
- Cost-turnover ratio – How effective was your direct mail campaign?
- Return on investment (ROI) – How profitable was your direct mail campaign?
- Average order values (AOV) – How much did customers spend on average?
- Cost per order / acquisition – How much does a new customer cost?
- Customer lifetime value (CLV) – What is the total value of a customer over your entire relationship with them?