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Q: Rate of return on direct mail ( Answered 5 out of 5 stars,   0 Comments )
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.
Subject: Re: Rate of return on direct mail
Answered By: bobbie7-ga on 06 Oct 2003 15:39 PDT
Rated:5 out of 5 stars
Hello Mr4698,

The percentage of return from a mailing can be defined as the response

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.

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


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


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


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


According to Heidi Anderson, “typically, direct mail gets about a 1
percent response rate.”

ClickZ Today: ASAP Case Study


“Unlike direct mail, where a 2 percent response rate is considered
good, hard-and-fast benchmarks don't really exist in email.”

ClickZ Today:


From Home Business

“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.”


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

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


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,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,
mr4698-ga rated this answer:5 out of 5 stars
Very good answer - thank you very much!

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