How to track your direct mail campaign

tracking direct mail marketing campaign performance with Spectrum Mail Plus online dashboard with direct mail example in hand

DIRECT MARKETING CAMPAIGNS

How to track your direct mail campaign

tracking direct mail marketing campaign performance with Spectrum Mail Plus online dashboard with direct mail example in hand

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?

 

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The EDDM Myth

EDDM Vs Smart Saturation

The EDDM Myth

Many businesses have come to believe that EDDM®, or Every Door Direct Mail®, is the least expensive form of direct mail. This simply isn’t the case but the perception has been perpetuated by the USPS and many mail providers looking to keep the execution of direct mail campaigns as easy as possible.
EDDM Vs Smart Saturation

Higher Costs of EDDM vs. Saturation Mailing

EDDM Mails to Bad Addresses

Have you ever wondered why EDDM counts are higher than a normal Saturation mailing? It’s because you are sending to records that should have been removed. Vacancies, do not mails, and excessive drops have all been removed from regular occupant files. Every “extra” EDDM address–often as high as 10% of the list–is a waste of postage and printing.

EDDM Does Not Allow Removals

To qualify for Saturation rates, you only need to mail to 75% of all addresses in a CRRT or 90% of all Residential addresses–whichever count is lower. So why blanket your mailings to every address? With standard occupant data, we have all sorts of removal options that allow clients to optimize their mailings, while maintaining the best possible rates. Here are three great choices

  • Saturation Record Filters:
    This allows you to trim a list to the count you want. For example, if you have 11,748 records and only want to mail to 10,000 of them, you can select to remove certain types of records (trailers, apartments, PO Boxes, businesses), or you can trim by lowest income CRRTs first. This gives you a “smart” way to remove those records.
  • Penetration Indexing:
    By analyzing your existing customer list and looking for areas you’re already successful, we can effectively target areas that contain “look-a-like” consumers that are more likely to respond to your offers.

EDDM Has Lower Response Rates:

Time and time again, we’ve had new customers come to us because EDDM just performs poorly when compared to normal Saturation mailings.

  • The postal carrier, sometimes, packages all EDDM pieces together, so EDDM mailings become less of a standalone mail piece.
  • EDDM mails to extraneous addresses that normal Saturation mailings would skip thus reducing the overall results.

But What’s the ROI Difference?

With EDDM you do not need to purchase the mailing list or spend as much time processing the job, whereas with saturation mailings you can save on postage and on wasted mail piece delivery. How does this affect the overall ROI of a mailing?
Calculate the following costs:
  • The average cost to address a first class postcard: $.062
  • The average cost to purchase a mailing list: can range from .$.02 to .$030 a record.
  • Postal savings will be .001 to 2.3 cents.
  • Delivery savings will be .002 to .004, since only SCF is needed for letter Saturation mailings.
  • You save 3% to 10% on wasted mail pieces: vacancies, do not mail addresses, and excessive drops (1 to 3 cents).

Consider the following:

Saturation mailing can be more cost-effective per piece in high volumes due to specific postage discounts, particularly when utilizing options like the DDU (Destination Delivery Unit) entry level, where the mail is brought directly to the local post office for delivery.

• EDDM has the lowest postage rates available from the USPS, mainly because it requires less sorting and handling by the Postal Service.

• EDDM postage rates are around $0.219 – $0.30 per piece (for EDDM BMEU) and $0.223 (for EDDM Retail), with the DDU discount bringing the EDDM BMEU rate down to $0.219 per piece.

• Saturation flats sent to the DDU entry level can have a postage rate of $0.218 per piece.

However, it’s important to remember that EDDM postage savings can be offset by other costs:

• EDDM may require larger mail pieces (flats), potentially leading to higher printing costs compared to saturation mailings using standard postcard sizes.

• EDDM requires the sender to prepare, sort, and bundle the mail into stacks for delivery, potentially incurring labor costs and time.

• Saturation mailing, especially when utilizing a full-service provider, might offer additional discounts, like a 5-digit postal sortation discount, which could further reduce postage costs and potentially result in lower final costs than EDDM, according to Mail Shark.

Factors impacting savings:
• Volume of Mail: Higher volumes in saturation mail can unlock greater discounts, potentially surpassing the per-piece savings of EDDM.

• Level of Service: Full-service direct mail providers often have access to deeper discounts and can handle the complexities of saturation mailings, making it more cost-effective than DIY EDDM.

• Targeting Needs: If specific demographic targeting is crucial, saturation mail (which allows for excluding certain addresses) might be more efficient, reducing wasted mail pieces and maximizing ROI, even if the per-piece postage is slightly higher than EDDM.

"Smart" Saturation Mail Costs Less Than EDDM!

All of this shows that saturation mailing generally ends up costing less than EDDM overall. Additional benefits of saturation include narrowing your list selections on a household level (through Saturation Record Filters, Penetration Indexing or Response Boosters) and Saturation mailings typically perform better.

EDDM® & Full Service Mailing Guide
Tasks to complete in Preparing MailingUSPS Every Door Direct Mail® (EDDM) Retail StepsUSPS Every Door Direct Mail® (EDDM) CommercialFull Service Mail Program One-Stop Solution
Design Your PieceSpectrum HandlesSpectrum HandlesLet Us Do it All for You!
Design, Print, Mail Prep, Trucking, and Postage.
PLUS: With Spectrum's Saturation Mail Program:

  • Agency-level design at reduced rates
  • Customized penetration report
  • Reach every household you want at postage rates at OR BELOW EDDM rates
  • Mail single family homes only
  • Don't mail a fixed radius - mail specific neighborhoods!
  • Drop out your current customers so you're not discounting previous sales
  • Variable data options
  • Mail only top income routes in your market
  • Mail neighbors based on households with children
  • Mail specific ethnic neighborhoods
PLUS lots more targeting options with Spectrum's Full Service Program
Print Your PieceSpectrum HandlesSpectrum Handles
Truck Your Piece to LocationSpectrum HandlesSpectrum Handles
Pick a Maximum of 5k HomesDo-It-YourselfNo Maximum Spectrum Handles
Go to USPS.com to select routesbased on 5-Mile RadiusDo-It-YourselfSpectrum Handles
Count Mailing in Bundles of 5 and band two waysDo-It-YourselfSpectrum Handles
Print Facing Slips and apply one per each 50 piece bundleDo-It-YourselfSpectrum Handles
Drive to each Post Office and pay on-site for the mailingDo-It-YourselfSpectrum Handles

The Key Takeaway

Less, Waste, Better Campaign ROI!

You will typically get a better ROI with our “Smart” Saturation Mailings Program. While from a pure numbers standpoint, Saturation Mailings tend to beat out EDDM even with their “free data”, but there are other reasons other mail vendors might prefer to use EDDM.

Many mail and print providers don’t have the capability to ink-jet addresses or turn around EDDM jobs rapidly making it difficult to deliver on time. Many also don’t have the knowledge, capability, or expertise to execute them properly.

So if you use EDDM often, think about whether it is the right choice for your marketing campaigns – you may be wasting resources!

Not sure?  Spectrum will do a free marketing analysis to help you to determine which targeted mailing list option is best for you.

Spectrum has the data technology, expertise, and mail formats to execute higher ROI campaigns using “smart” saturation mailings.

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Top 7 Reasons Direct Mail Wins More Customers

Top 7 Reasons direct mail ins more customers

Top 7 Reasons Direct Mail Wins More Customers

Going into 2018 the DMA stated the following in their Statistical Fact Book.

“For those of you who are already on the direct mail bandwagon – because you really should be in this day and age – here’s what you should know about 2018: It’s going to be irresistibly amazing!”

This prediction has certainly proven to be the case.
Top 7 Reasons direct mail ins more customers

1) Better Response Than Other Channels

The 2018 ANA/DMA Response Rate book defined direct mail as having the best response rate among all other marketing channels. Direct mail crushes the other channels with a 9% response rate for house lists and a 5% rate for prospect lists. Combined, the other channels only manage 3.3% across both house and prospect lists.
With email and social media marketing on the rise, consumers have become exposed to hundreds of advertisements on a daily basis, some more intrusive than others. In doing so, consumers have become numb to digital media advertising and have even taken measures to remove the ads from their reach. Coincidentally, even as email continues to be the most used tool for advertising, it is hardly the most effective with a 1% response rate by prospect list (a 0.8% increase from 2017).
Response Rate by Selected Media

2) Effective Targeting

Direct mail, when implemented properly into a marketing campaign, has the ability to target very specific demographics. When you tailor your campaign to appeal to your ideal audience, you increase the potential for response by cutting out the customers who are less likely to respond to your marketing efforts.

3) More Trusted By Consumers

There’s something about a tangible piece of collateral that tells consumers that you’re trustworthy. Consumers are more likely to trust your business if you send them a physical piece of mail rather than send digital communication.

4) It’s More Persuasive

Direct mail has a similar effect over consumers in persuasion as it does trustworthiness. Sensory stimulation is a proven tactic in retail; a consumer’s likelihood to purchase is in fact correlated with the number of items they touch.

5) Direct Mail Is More Memorable

When you receive a direct mail piece, it touches more of your senses than digital marketing does. When you allow consumers to touch, see, and smell your direct mail piece, they’re more likely to remember your business. Direct mail, when saved, also serves as a constant reminder more so than digital channels.

6) Creative Options Allows For Unique Engagement

Direct mail can create a better response by engaging with consumers in a more memorable way. Use custom folds and die-cuts to create an interactive piece that is a more engaging experience for customers.

7) Able To Reach All Demographic Groups

If there’s a demographic group that is part of your ideal audience, direct mail can target it. Our team can segment your mailing list with many demographic and geographic filters including age, housing, financial interests, hobbies, geography, and more.

81%

of survey respondents plan to maintain or increase usage of direct mail in the next 12 months.

Direct Mail Response Rate Continued From Blog

Response Rate by Selected Media
2018 Direct Mail Response Rates
Direct Mail Response Rates
Direct Mail’s Explosive Growth
*All relevant data has been pulled from this year’s 2018 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels. (Source: ANA/DMA Response Rate Report 2018)
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Direct Mail Has Explosive Response

Direct Mail Explosive Growth

Direct Mail Records the Highest Response Since Being Tracked!

Direct mail’s performance is the highest it’s been since the DMA / ANA (Data & Marketing Association / Association of National Advertisers) has been tracking it and here’s why so many marketers are finding a historic level of success.
Direct Mail Response Rates
The increased level of direct mail response in the last 3 years represents a remarkable reversal of the previous trend and underlines the fact that something truly amazing is happening in this traditional channel. Based on the DMA’s “Direct Mail Response Rates 2003-2018”, House List (customer) response rose 125% from its 2015 levels and Prospect Lists (acquisition) rose 400% for the same period.

The contributing factors to Direct Mail’s recent success:

It's More Trusted

Print-based media including publications, catalogs and promotional materials received in the mail are the MOST TRUSTED by consumers when making a purchasing decision (based on surveys conducted by MarketingSherpa*). This comes at a time when other major channels like digital are being viewed with increased skepticism due to data breaches, spam, questionable content and elevated privacy concerns.

Better Data & Lists

Companies have made it a priority to maintain their customer data to a higher standard than in previous years. They are now using this data more effectively than ever to influence the purchase behaviors of their existing customers (higher frequency of purchase / increased level of purchase) and model prospect data to more effectively find “look-alike” customers to acquire.
Direct Mail Explosive Growth

Better Pieces & Offers

With the implementation of improved testing methodologies, marketers are able to optimize their efforts by testing mail formats, offers and a range of other variables to achieve the best overall approach. With POS systems supporting features like scannable coupon codes and other tracking, marketers are able to use data captured by previous campaigns to improve results in the future.

84%

of Millennials take the time to look through their mail and 64% would rather scan for useful information in the mail than e-mail. In addition, this generation even believes paper mail is a more reliable and viable source of communication (USPS Mail Moments Review).

Mobile Shift

The shift to a “mobile first” mindset and consumers interacting on mobile devices at a higher rate than desktops has changed the impact various digital advertising formats have. What was previously viewed on large desktop screens is now either much smaller on a mobile device, limited in its “rich media nature” or requires drilling down further to see any of the content in the case of email.

Direct Mail Response Rate Continued From Blog

Response Rate by Selected Media
2018 Direct Mail Response Rates
Top 7 Reasons direct mail ins more customers
Top 7 Reasons Why Direct Mail Wins More Customers
*All relevant data has been pulled from this year’s 2018 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels. (Source: ANA/DMA Response Rate Report 2018)
*Reference to survey on “Which advertising channels consumers trust most and least when making purchases” (Source: Marketing Sherpa)
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Direct Mail Response Rates for 2018

Response Rate by Selected Media

Direct Mail Response Rates Rose Significantly In 2018!

Direct mail still remains one of the most effective ways to market to your consumers due to its ability to create a lasting impression on consumers and return a high value for businesses.

There was significant growth in direct mail response rates from 2017 to 2018! House rates rose to 9% (3.9% increase) while prospect response rates rose to 5% (2.1% increase). This is the highest number for house lists since the report started.

With email and social media marketing on the rise, consumers have become exposed to hundreds of advertisements on a daily basis, some more intrusive than others. In doing so, consumers have become numb to digital media advertising and have even taken measures to remove the ads from their reach. Coincidentally, even as email continues to be the most used tool for advertising, it is hardly the most effective with a 1% response rate by prospect list (a 0.8% increase from 2017).
The difference we’re seeing in email marketing compared to direct mail marketing is that the ROI numbers for email marketing are high, but, that’s only due to its incredibly low cost.
Quantitatively email marketing is great, however, quality engagements and customer acquisitions come from direct mail.
Response Rate by Selected Media

Ignoring direct mail is more difficult than ignoring email.

Direct mail shines among consumers as your physical mailbox now harbors unique and effective pieces that catch the eye. It is much easier to breeze through your email account, or ignore large numbers of emails in your cluttered inbox.  There is something special about holding a eye-catching creative mail piece in your hand and experiencing the special offer as it was meant to be.

Direct mail response rates are growing faster than other media.

Online display, email, and social media response rates have all rose as well though not as much, which, stands to reason that direct mail still has strong pulling power for business in attracting new customers while also keeping long-term customers coming back.

Looking to increase response rates for your company?

If your company is interested in increasing your campaign response rates, Spectrum has the proven strategies and solutions to get you there.  If you are interested in increased ROI, deliverable brand awareness, and most importantly better marketing RESULTS; consider direct mail from Spectrum as your one-way ticket to more successful advertising campaigns.
INCREASE YOUR RESPONSE!

Direct Mail Response Rate Continued From Blog

Direct Mail Response Rates
Direct Mail’s Explosive Growth
Top 7 Reasons direct mail ins more customers
Top 7 Reasons Why Direct Mail Wins More Customers
*All relevant data has been pulled from this year’s 2018 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels. (Source: ANA/DMA Response Rate Report 2018)
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Direct Mail Response Rates for 2017

2017 Direct Mail Response rates

Direct Mail Response Rates Held Strong In 2017

Direct mail still remains one of the most effective ways to market to your consumers due to its ability to create a lasting impression on consumers and return a high value for businesses.
With email and social media marketing on the rise, consumers have become exposed to hundreds of advertisements on a daily basis, some more intrusive than others. In doing so, consumers have become numb to digital media advertising and have even taken measures to remove the ads from their reach. Coincidentally, even as email continues to be the most used tool for advertising, it is hardly the most effective with only a 0.2% response rate by prospect list (a 0.1% drop from 2016). The difference we’re seeing in email marketing to direct mail marketing is that the numbers in ROI for email marketing are high, but, that’s only due to its incredibly low cost. Quantitatively email marketing is great, however, quality acquisitions come from direct mail.
2017 Direct Mail Response rates
Effectively, email has given direct mail a chance to shine among consumers as your physical mailbox now harbors unique and effective pieces that catch the eye. It is easy to breeze through your email inbox, but there is something special about holding a mail piece in your hand and experiencing the offer as it was meant to be.
While there hasn’t been significant growth in direct mail stats from 2016 we see that the response rate barely budged. House rates dropped only 0.2% while prospect response rates stayed right where they were, at 2.9%.
Online display, email, and social media response rates have all dropped since last year, which, stands to reason that direct mail still has strong pulling power for business in attracting new customers while also keeping long-term customers coming back.
If your company is interested in increased ROI, deliverable brand awareness and most importantly RESULTS; consider direct mail marketing as your one-way ticket to a successful advertising campaign.
Check out the response rates for 2018!
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*All relevant data has been pulled from this year’s 2017 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels.