Zairmail "DM Expert" Articles

On Direct Mail, Direct Marketing, Bulk Mailing, Mailing Lists, and More!

Get Better Results with Direct Mail - Make the Call


By Wilson Zehr, CEO, Cendix

Over the past 50 years, American businesses have sent billions of pieces of mail with an eye towards growing sales. Everything from simple letters and postcards, to CD's, three dimensional brochures and boxes of cereal have found their way into mailboxes across the country. Needless to say, billions of dollars are riding on the success or failure of these mailings.

 

What's the key to success? Talk to them! The best way to guarantee the success of your direct mail campaign is to personalize it with a call, make it easy for customers to respond and measure the results. Campaign success is measured as return-on-investment (ROI) - or how many total sales were generated compared to the cost of the marketing campaign.

 

If you are running a long-term campaign, try testing your mailing on a small-scale first. When conducting a test mailing, decide how many pieces you want to send. Make sure you send out enough responses to accurately determine your response rate and the effectiveness of your message. A good rule of thumb is to test between 1,000 and 5,000 pieces to start. Your response rate will vary depending on your product, industry, target market and other factors. To increase the response of your mailing, you will want to pay attention to these factors:

 

 

 

 

 

 

 

 

 

Of course, the results produced by any campaign are dependant on the general economic environment, the market, the product, the list, the offer, and other factors. However, the following chart identifies the types of returns that are possible when implementing a solid direct mail campaign:

 

Direct Mail ROI

 

Standard

 

With Toll-Free #

 

With Follow Up Call & Toll-Free #

 

 

 

 

 

 

 

Number of pieces you will mail

 

1,000

 

e

1,000

 

e

1,000

% of response you expect

a

2%

 

 

4%

 

 

8%

% of respondents you expect will purchase

 

40%

 

 

40%

 

 

40%

 

 

 

 

 

 

 

 

 

Average sale size

 

$50

 

 

$50

 

 

$50

Profit per sale

b

$25

 

 

$25

 

 

$25

Repeat purchases

c

36

 

 

36

 

 

36

Lifetime Customer Value

 

$900

 

 

$900

 

 

$900

 

 

 

 

 

 

 

 

 

Targeted mailing list

f

$65

 

 

$65

 

 

$65

Design, creative, & coordination

d

$60

 

d

$60

 

d

$60

Production & mailing cost (per piece)

 

$0.49

 

 

$0.49

 

 

$0.49

Teleservices (inbound or outbound)

 

$0

 

 

$89

 

g

$277

Total mailing campaign cost

 

$615

 

 

$704

 

 

$892

 

 

 

 

 

 

 

 

 

Number of responses

 

20

 

 

40

 

 

80

Number of sales

 

8

 

 

16

 

 

32

Total immediate sales

 

$400

 

 

$800

 

 

$1,600

Total (LCV) campaign revenue

 

$4,920

 

 

$11,264

 

 

$28,544

 

 

 

 

 

 

 

 

 

Return on Investment (RoI)

 

700%

 

 

1500%

 

 

3100%

 

Notes:

 

(a)     traditional rule of thumb is 2% -- actual response will depend on factors such as product, market, list, & offer

(b)     calculated as sales price less direct cost of product sold

(c)     usually 24-36 months depending on product cycle

(d)     one hour assumed at $60/hour

(e)     assumes 100 minutes/1,000 pieces

(f)      assumes business lists, consumer lists will be less expensive

(g)     assumes business lists, consumer calls will require DNC compliance at additional cost

 

Source: Lauchpoint Inc.

 

So, if you have a product or service you'd like to sell, direct mail, combined with personalized services such as a toll-free number or follow up call, may be just the marketing tool you need to take your business to the next level.

 

About the Author:

Wilson Zehr is CEO of Cendix (www.cendix.com), the leading provider of Web-to-print solutions that increase sales both online and offline. Cendix also provides strategic and tactical marketing consulting services for emerging growth companies in the Pacific Northest. In addition, Wilson serves on the faculty for the School of Management at Concordia University, Portland, Oregon. A complete bio and contact information are available at contact Wilson Zehr and more details on the Zairmail affiliate program can be found at Zairmail Affiliate Program.

 

 

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