Any tangible letter you send to consumers in the hopes that they would support your business is known as direct mail marketing.
But one question always surrounds this topic, does this form of marketing work? What ROI can it generate? And how consistent the ROI could be?
So the direct answer to all these questions is – Yes, direct mail marketing does generate ROI, and it could be consistent if the efforts are also consistent, which eventually boosts the sales in the longer run.
There are many terms associated with the response rates of any campaign. And one such term is how to calculate the response rate, it may sound a little complex to calculate the response rate but it’s not.
A campaign’s response rate is calculated by comparing the quantity of mail you sent out to the number of recipients who follow through and carry out the advice contained in your mail piece.
So How to Calculate these Response Rates?
It is very simple to do, as we just need a simple formula where we have to put the values and your response rate will be calculated in no time.
For this you only need two values, first the total number of responses you received and second, the total number of mails sent.
And by dividing the total number of responses by the total number of emails sent, you will get the actual response rate.
One more question arises in this scenario and that is what is considered a good response rate for any particular campaign.
On average 10% is considered a good response rate in any type of campaign, but it all comes down to the efforts you take to make these campaigns successful. With constant effort, it could even lead to more than 25% of the response.
How to Increase Response Rates
- Identify Your Market
Every direct mail campaign should start by pinpointing the target audience for its message. Once you are aware of this, you may target this set of people with a message, which will enhance your direct mail response rate.
Some tips for identifying your market.
- Look at your current clientele; This is the most effective technique to identify those who will benefit most from your offering. They purchased from you, so why? What are their demographics and interests? Which customers bring in the most money?
- Who are your greatest competitors, in terms of the market? Which clientele are they aiming for?
- Think about the goods and services you’re providing. Who would profit most from them? Who stands to gain the most? Who stands to lose the most if they don’t use your service or buy your product?
- Target niche demographics: Who are the age, gender, marital status, place of residence, income, and profession of your ideal client?
- Take a look at your greatest clients’ psychographics to see what personality traits, beliefs, and actions they have in common. What kind of lifestyle (interests, pastimes, etc.) do they lead?
- Are there enough people who fit your target market, in your opinion? Do they have the disposable income necessary to buy your goods or service?
- Making use of advanced targeting
One of the easiest strategies to boost response rates is to strategically target your direct mail marketing to a certain demographic of clients
There are many ways to target, some of them are given below:
- Geographical Targeting
Based on the area where you anticipate finding your consumers, you can target them.
Businesses with physical shops often employ this tactic to increase local foot traffic to their establishments.
- Targeting by Demographics
Your ideal customers are targeted using a variety of demographic data points in this type of targeting. These things consist of:
- Age\sGender
- median earnings
- Ethnicity
- Place of residence Education (House, apartment building, etc.)
- Family size and marital status More!
- Business Orientation
When your ideal client is another business, business targeting is used (B2B). With this kind of targeting, you can sort through companies according to their status as corporations, governmental entities, nonprofit groups, or any other kind of company.
The companies that stand to gain the most from this kind of targeting are those who only market to other companies.
- Psychological amplification
In contrast to demographic targeting, psychographic targeting takes into account the psychological state of your prospects. This encompasses their morals, interests, pastimes, character qualities, attitudes, loves and dislikes, and more.
You may choose the people who are most interested in your goods and services by using this information, which will also probably result in a higher direct mail response rate.
- Targeting Sales Stages
Finally, you may choose to target people based on what stage of the sales cycle they are in. Sending distinct messaging to new leads vs those who have previously purchased from your company will increase your response rates.
- Customize Your Direct Mail to You
Everybody appreciates being given some extra consideration occasionally. We like to be told that we are unique and not one of eight billion people.
As a result, when businesses go above and beyond to customize their message to clients, the outcomes often astound.
- Include the recipient’s first name. Your message will be considerably less likely to get your attention if the opening line just says, “Hey you,” as opposed to, “Hey (your first name).”
- Make your message specific to a particular gender. If you’re trying to market a product or service
- only to men or women, you might want to try to change your messaging to reflect their interests.
- When creating localized direct mail marketing, mention your region. By mentioning your location, you can establish a connection with your viewers. As an illustration, you might wish to mention a particular Edmonton landmark or destination to let people know that your business is nearby and that they should stop by.
- Invest in good design
One of the criteria that determines whether someone will open your direct mail piece or simply chuck it into their “junk mail” bin is design.
While you could be tempted to get carried away with designing the ideal design, it’s crucial to keep in mind that your design’s main function is to complement the direct mail piece’s message.
In order for the reader to read the first line, the second sentence, and finally your call to action at the end of the piece, the design elements must work flawlessly together.
- Create Engaging Copy
Your direct mail piece’s copy acts as your brand’s voice. In addition to exuding excitement, it must also make the reader understand the advantages of accepting their offer or what will happen if they don’t.
It’s crucial to always keep the customer in mind when drafting a copy. What would you say to pique their interest in your company? How can they benefit from your offerings? How do you get their confidence?
Conclusion
The return on investment can be boosted in many ways, from targeting your audience to finding your niche in the market.
Direct mail services are loved by many, so using it effectively is something companies should think about wisely.