Direct Mail Metrics
This article will discuss a few ways to measure your direct mail campaign. You can look at Cost per order, Average order value, and Holdout groups. Each of these metrics can give you a better understanding of your campaign’s effectiveness. Once you know how to measure your direct mail campaign, it’s time to start adding more tactics. Adding more tactics will help your business understand which tactics work the best.
(For a print to mail service, contact us today!)
Cost per acquisition
Cost per acquisition (CPA) is a measurement of the cost of acquiring a new customer or lead. It is a useful measure to compare marketing campaigns and determine which one is more cost-effective. Cost per acquisition can also be used to calculate the revenue per order or lead. Another useful metric is the customer lifetime value. This can help you understand the cost to retain a customer.
Cost per order
The cost per order of direct mail is determined by several factors. For example, the size of your direct mail piece will have a significant impact on the cost. Direct mail pieces with simple formats can be cheaper to produce. Larger direct mail pieces are more expensive. You will also need to account for the cost of postage, which varies based on the mailing rates, volume, and mailing list specifications.
Average order size
Direct mail can be a powerful tool for marketing your business. To measure the effectiveness of a particular piece, you should know the average order size of each mailing. This number can be calculated by paying attention to individual orders and by using data collected from your direct mail campaign. Note that the average order size of a direct mail lead is different from that of a walk-in lead or web lead. You can find the average order size by subtracting the cost per acquisition from the total revenue you’re earning per order.
Holdout groups are useful for analyzing natural sales. By measuring the number of customers who do not receive your marketing email, you can determine if your discount is cannibalizing profits. For example, if you’re sending out an eCommerce email, you want to know whether your discount drives customers to buy more products or not. A holdout group of people who did not receive the email may be buying more products than those who did.
Custom URLs are useful for tracking and measuring the effectiveness of direct mail campaigns. With the right URL, you can measure the response rate and make adjustments to improve results. For example, adding images and copy relating to the recipient makes it more personalized to them.
Using QR codes in direct mail measurement helps track customer engagement, collect user data, and measure response rates. These metrics enable marketers to create more personalized and innovative campaigns. Ultimately, they lead to higher response rates and ROI.