Nowadays, digital channels have made reaching your target audience so much simpler. From social media to email, sending your message and raising brand awareness takes only a few clicks. However, is that message really being received? 

Although digital channels provide a quick route to consumers, studies show that direct mail still achieves higher response rates than digital channels. In fact, a 2024 report revealed direct mail generates a significantly higher rate of engaging than email marketing – 3.63% vs. 1% respectfully.  

For entrepreneurs and professionals across industries, realizing the power that direct mail still holds over consumers is vital – now, more than ever as it becomes increasingly difficult to rise above all the noise and competition. 

To make the most of your direct mail efforts, it’s important to correctly measure their successes and their failures. Here, we’ll go over key metrics needed to measure performance as well as several strategies you can use to fully optimize your campaigns.  

Key Performance Metrics 

In our fast-paced, data-driven world, certain metrics must be tracked, measured and analyzed in order to understand the impact of a marketing campaign’s success. Return on investment (ROI) is the ultimate benchmark as it can provide clear insights into how effectively resources are being used. 

Before calculating ROI, it’s best to have a full picture. That means you first want to review response rates. This metric measures how many recipients took an action after they received the direct mail piece – whether it was calling, visiting a website or otherwise engaging with the company. The figure is found by dividing the number of responses by the total mailers sent.  

Of course, not all responses or forms of engagement impact the bottom line. That’s where conversion rates come into play. This metric only covers when a recipient signed up for a service, completed a purchase or performed some sort of revenue-generating action. It is measured by dividing the number of conversions by the total mailers sent.  

Other important metrics include: 

• Cost per response – The total campaign cost divided by the number of responses received. 

• Revenue per piece – The total revenue generated is divided by the number of mailers sent. 

• Cost per acquisition – The cost required to convert a lead into a customer. 

• Customer lifetime value – The projected revenue a customer will generate over their relationship with the business. 

All of these metrics come together to paint a picture of the campaign’s success and shed light on certain aspects of ROI. ROI is then determined by comparing the revenue generated from the campaign to the cost it took to run it. The campaign cost is subtracted from the revenue generated and then divided by the campaign cost. This can be expressed as a percentage by multiplying it by 100. 

Effective Strategies to Measure and Boost ROI  

Now that you have the data, you can put it to work. One strategy you can use to optimize your campaigns is to test what is and isn’t working through A/B testing. This involves experimenting with the message, design or offer and then testing each variation on small groups before launching a full-scale campaign. While it takes time, this approach can help determine what truly resonates with the target audience. 

Another strategy is to integrate your direct mail data with customer relationship management (CRM) software. With the power to analyze vast amounts of data quickly, this specially designed type of analytics software can offer you deeper insights into customer behavior, campaign pain points and more. That way, you can fine-tune outreach and improve targeting for the next campaign.  

Lastly, utilizing unique identifiers can make measuring the effectiveness of each campaign easier. These identifiers can include custom URLs, QR Codes and promo codes. All of these can help connect your direct mail efforts to measurable digital interactions so that no lead goes unnoticed.  

By combining internet lead generation strategies with tools designed to improve your direct mail efforts, you can create a seamless omnichannel marketing approach that maximizes engagement, conversions and, ultimately, your ROI. 

AUTHOR BIO: Richard Bufkin is President of TargetLeads a division of Senior Direct Inc., a direct mail marketing company. With over 20 years of experience, he focuses on lead generation and growing the business.