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Q: Rate of return on direct mail ( Answered ,   0 Comments )
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 Subject: Rate of return on direct mail Category: Business and Money Asked by: mr4698-ga List Price: \$10.00 Posted: 06 Oct 2003 13:50 PDT Expires: 05 Nov 2003 12:50 PST Question ID: 263201
 ```I need to know the percentage of return on a direct mail piece. What percent of the people that receive a direct mail piece actually either look at that piece or buy from the company that sent the piece.```
 ```Hello Mr4698, The percentage of return from a mailing can be defined as the response rate. RESPONSE RATE: “Percentage of return from a mailing. If you received 2 replies per hundred, the response rate would be 2%.” Rubin Response Services Inc. http://www.rubinresponse.com/rubin_resources/glossary.html The response rate for a direct mail piece is generally between one and two percent. According to an article in ClickZ Today by Rebecca Lieb, the response rate to a direct mail piece is estimated at 1-2%. “Court Cunningham, who oversees DoubleClick's DARTmail estimated the average email cost per unit at \$0.25, versus \$1.25 for a direct mail piece. Response rate? One to two percent for direct, five to fifteen percent for email.” ClickZ Today http://www.clickz.com/feedback/buzz/article.php/935661 ---------------------------------------------- According to Premier Marketing LLC, a 1% response rate to a direct mail campaign is considered successful. They describe it as follows: “The integration of direct mail is a valuable addition to any telemarketing campaign. Although specific response rates for both direct mail and telemarketing depend on the offer and the presentation, it is generally considered successful if a direct mail campaign nets a 1% response rate. In hard numbers this means: 1000 Mail Pieces Sent x 1% Response Rate 10 Net Sales” Premier Marketing, LLC http://www.telephonemarketing.com/services.htm ---------------------------------------------- The HP Direct marketing how-to guide states that a good direct mail piece will generate a response rate of 2-4%. “A good direct mail piece will generate a response rate of 2-4%. The highest rates will be attained by including a strong offer or by addressing a particularly strong "pain" point for the reader. To attain higher response rates, such as 4% or better, you should: Address pain points for your target audience. Clearly and concisely describe how your solution will benefit them. Have a strong call to action to motivate the reader to respond. Be clear and make it easy for the respondent to reach you.” HP Direct Marketing Guide http://www.hp.com/sbso/productivity/office/direct_marketing_guide.html ---------------------------------------------- I located a case study addressing Email Versus Direct Mail, sponsored by IMN, by Heidi Anderson dated September 19, 2002. The direct mail response rate was 1.25 percent. Here are a few relevant excerpts from the study. “The total cost of the direct mail program, including production, postage and lists, was \$153,000. The total cost of the email program, including production, lists and delivery, was \$35,837 -- a quarter of direct mail's cost.” “The initial response rate for direct mail was 1.25 percent. The initial CTR for email was 3.72 percent. This translates into a cost per initial response of \$80 for direct mail versus \$10.31 for email.” “The direct mail piece received 1913 total responses. Two percent converted to leads. In other words, Company ABC received 38 total leads from direct mail. The email campaign had 3,476 click-throughs, with 23 percent converting to leads. Email delivered 800 leads.” ClickZ Today http://www.clickz.com/em_mkt/case_studies/article.php/1465331 ---------------------------------------------- According to Heidi Anderson, “typically, direct mail gets about a 1 percent response rate.” ClickZ Today: ASAP Case Study http://www.clickz.com/em_mkt/case_studies/article.php/2116761 ---------------------------------------------- “Unlike direct mail, where a 2 percent response rate is considered good, hard-and-fast benchmarks don't really exist in email.” ClickZ Today: http://www.clickz.com/em_mkt/opt/print.php/1479111 ---------------------------------------------- From Home Business Research.com: “If you are very lucky,.. you may get a 2-3.5% response rate to your mail piece. Most likely your response rate will be 1% or lower.” http://www.homebusinessresearch.com/Promotions_Center/Direct_Mail/direct_mail.html ---------------------------------------------- What kind of response rate can I expect with my mailing? “A: Response rates are affected by products, offers, customer incentives, quality of mailing list, mail piece/package design, and delivery time of the mailing. Many industry experts suggest 1% is successful. However, some mailers may require more or less to realize a profit from the efforts.“ A+ Mailing Solutions http://www.aplusmailingsolutions.com/FAQs.html -------------------------------------------- Additional information that may interest you -------------------------------------------- Catalogs receive a 2.53 percent response rate. “According to results of a new study from the Direct Marketing Association (The DMA), catalogs that were mailed to a company's in-house customer file resulted in a 4.08 percent response rate, while catalogs mailed to prospects received a 1.62 percent response rate. Overall, catalogs received a 2.53 percent response.” Direct Marketing Association http://www.the-dma.org/cgi/dispnewsstand?article=1230 ---------------------------------------------- Question: “What affects the response rate of a Direct Mail piece?” Answer: “While there are no hard and fast rules, some things seem to affect response rates more than others. In general, the list you use for your mailing is the most important thing in determining response, followed by the offer you make. From there, timing can play a big role in response, and so can creative execution.” Australia Post Mail Marketing http://www.auspost.com.au/DMP/0,1392,CH3257%257EMO19,00.html Search Criteria: "Response rate" "direct mail piece" Direct mail piece "response rate of *%" Percent return “direct mail piece” I hope this helps. If anything is unclear with my answer, please ask for clarification. Best Regards, Bobbie7-ga```
 mr4698-ga rated this answer: `Very good answer - thank you very much!`