It is important with any marketing venture that you are effectively analyzing your ROI. With direct mail, it can sometimes be difficult to measure entirely how effective the campaign really was. We recommend that you focus on these three factors when calculating the success of your campaign: close rate, mail frequency, and your sample size.
When it comes to your close rate, what you are really trying to determine what you need to break even. Your close rate the number of closed sales divided by the number of pieces mailed. A good rate to shoot over is 2%. The right close rate is relative to the price of your product, but if your numbers are pulling in over 2% you should be in a good spot.
The next area you should focus on is mail frequency. When it comes to mail frequency, you first have to make sure you are using a good source list. Direct mail is worth virtually nothing if you are targeting the wrong people. Make sure you are confident with the mailing list you are using in your campaign. Take a good look at your target market, and make sure your mailing list will be reaching the right crowd. If you are planning on executing a long-term direct mail campaign, you will need to make sure you have access to enough names to make your campaign worth it. If you mail the same people too frequently, you can waste ad money. On the other hand, if you never mail the same people more than once you could be missing out on big opportunities. You will have to test the frequency in which you mail out the direct mail in order to determine what the best cadence is for you.
If you are testing to see the effectiveness of a campaign, it is always a good idea to send out a sample piece. This can be conflicting if you only choose a sample size of 500, and expect to get the same close rate with sending out a million pieces. Don't expect a small sample group to produce the same results as a large list. Make sure your sample size is relative to your long-term goals, so you can accurately measure what the outcome of your campaign will be.