Direct Mail ROI – Direct Mail Response Rates

By: Andrew Glover
May 5, 2020
Categories: ,

Direct mail continues to be one of the most popular advertising channels and for many good reasons.  Direct mail provides reliable returns that often surpass digital channels. According to the 2018 ANA/DMA Response Rate Report, direct mail response rates were 9 percent to a house list and 5 percent to a prospect list. In 2017, the same report captured a response rate of 5.1 percent to a house list and 2.9 percent to a prospect list. Over the last several years, direct mail has shown an increase in response rates while other channels don’t offer similar response rates or the same level of growth.

What Positively Impacts ROI?

Digital printing positively impacts your return on investment. Compared with offset printing, digital printing provides quicker turnaround times, lower costs, and the option of printing in smaller or larger quantities. Digital printing also makes it easier to target a pinpointed audience. You can personalize pieces for each targeted group, which boosts your response rates.

Here are a few ways digital printing positively improves your direct mail ROI.

Variable Data Printing (VDP)

VDP gives you the opportunity to customize content per mail piece according to your targeted group. The more personalized your piece is, the higher your response rates will be because people respond better to mail that speaks directly to them. When you personalize your content, you are showing your recipient that you are finding ways to connect to what they find valuable or important. VDP provides you with a considerable amount of flexibility in your pieces, too. Personalization comes in all shapes and sizes, so you can spend what you want on a campaign while factoring in your predicted ROI.

Full-Color and Monochrome Capability

Response rates boosted as much as 500 percent in one study about full-color pieces. Digital printing offers you full color and monochrome printing options. Recipients appreciate the detail and are more likely to gain a positive impression of your organization. People are attracted to vibrant colors and high-quality pieces. When you have the option to print in full color or using a monochrome choice, you can easily adjust pieces at will and save on costs.

What Negatively Impacts ROI?

There are many aspects of a direct mail campaign that can result in a negative ROI. Here are a few examples of common mistakes that can hurt your marketing spending and campaign.

Running a Campaign Without a Goal

Sending mail pieces without a clear view of your prospect can quickly depreciate the value of your campaign because it relies on luck to garner responses from the receivers. If you don’t use thoughtful targeting during the planning stages of your campaign, you may deliver portions of your items to members who can’t benefit from your offer or aren’t in a position to take action. For instance, sending gas cards is only a sufficient incentive if you know your recipients use a car to get around town.

Not Following Up

Once shipments are delivered, and responses are recognized, there is still work to be done if you want to maximize the success of your campaign. You should have a follow-up plan in place before mailers and packages go out the door. An excellent follow-up process captures the responses that don’t come on their own. A quick follow up also communicates to the recipients that their engagement is truly sought after and valued.

Forgetting to Track Mailers and Tie to Campaigns

Shipping your direct mail pieces is only one aspect of the equation. For you to get the most out of your campaign, you must track the package deliveries. By monitoring the shipments, you can tie them to specific campaigns and track the responses. You aren’t able to track campaigns accurately without following these steps.

Improving Your ROI with Valtim

Valtim offers a large variety of products and services with the primary goal of helping your organization achieve a better return on investment. We provide digital printing, VDP, and full-color or monochromatic options that will help you make a personalized touch that speaks to your intended audience. Speak with one of our direct mail marketing experts to see how we can help maximize your next campaign’s ROI.

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