Measuring Direct Mail Response Rates and ROI in a Data-Driven World

Direct mail has long been a go-to marketing method and has a track record of effectiveness. However, most marketers want hard evidence to support their chosen marketing channel. 

How do we effectively measure direct mail response rates and ROI? Let’s explore how today’s marketing technology can help you connect the dots to discover precisely how well your direct mail campaign is working.

Start with Response Rate Benchmarks

Response rates are the basic measurement of effectiveness for direct mail. How often are customers responding to your mailings? Are they interacting with the piece once they receive it? 

According to the Association of National Advertisers (ANA) Response Rate Report, direct mail consistently offers impressive response rates. For house lists, the rate is about 15.6%, and for prospect lists, the rate falls to about 10.8%. These are quite reasonable rates—well above digital channels.

But, of course, these numbers are the only way to tell the story of direct mail response rates. It’s essential to look at the how of response tracking, not just the what. This is where factors such as Informed Delivery and Digital Integration can really help measure your campaign’s ROI. 

Informed Delivery Bridges the Gap

These days, an omnichannel strategy is typically the best approach for most marketers. Using a singular channel in isolation, even print and direct mail is no longer effective. Customers are multidimensional and appreciate a multifaceted approach to communication.

Services like Informed Delivery by the USPS add an extra layer of insight and control. Informed Delivery allows you to see when a given recipient is expected to receive their mail, so you can sync email and digital ads to arrive the same day (or as deliberately timed follow-ups). 

This approach keeps you in front-of-mind for customers and ensures that even if one message is overlooked, they’ll receive another as reinforcement. 

Beyond the timing advantage, Informed Delivery allows marketers to track open rates, landing page visits, and click-throughs connected to the printed mailer. The robust KPI tracking helps keep a near-real-time pulse on your campaign’s reach and customer engagement. Your direct mail campaigns become a trigger point for a broader digital behavior-tracking strategy. 

Use Unique Tracking to Attribute Results

So, how do you know which channels are truly driving which results? Which messages are resonating with your target audience? 

To accurately measure ROI, you need to drill down to the channel specifics. One way to do this is to create landing pages for each channel. Another way is to assign unique QR codes or PURLs (personalized URLs) to each message piece. 

Fortunately, leveraging tools like Google Analytics or CRM-integrated platforms can make short work of all that data and information. You can easily track conversions and follow the user journeys with only a few clicks. 

Newer tools like DirectMail2.0 take analysis a step further. DirectMail2.0 is a comprehensive package you can subscribe to for deploying an omnichannel campaign—bundling direct mail, digital ads, social media, call tracking, and Informed Delivery into one cohesive package. An ideal solution for marketers managing complex campaigns!

Calculating ROI: More Than Just Dollars In vs. Dollars Out

When we talk about the ROI of direct mail, it may initially sound like a simple formula of revenue accounting for campaign and overhead costs. However, ROI can also be counted through other secondary value drivers. 

For example, one primary value driver is increased brand recognition—the feeling your customer gets when they’ve seen your name come up at multiple touchpoints. With increased brand recognition, you’ll also get better audience targeting and segmentation as you go through the process.

Even if your direct mail doesn’t get an immediate response, it could be nudging prospects closer to digital conversion, especially in cases where the sales cycle is long. Direct mail gives you more multichannel exposure, greater customer lifetime value, and more qualified leads. 

It’s essential to consider the brand reinforcement you’re getting from omnichannel marketing and factor in the surprising ways this can build your brand (even without a direct purchase or action). 

The most critical piece of the puzzle is ensuring your message is clear and reaches the right people. This means you need clean, segmented lists and data. In marketing, we often say “garbage in, garbage out.” If your data is messy, your leads will be much harder to reach.

Data-driven targeting strategies help amplify responses (and thus ROI) by reducing waste and improving relevance. Which data should you use? It all depends on your marketing objectives, as long as the data is accurate no matter what. Remember, even the most compelling, engaging campaign can’t perform if it lands on the wrong audience. 

Let Us Help You Get Better Direct Mail ROI

Direct mail has earned its seat at the effective channel table. With tools like Informed Delivery, strategic channel attribution, and integrated analytics tools, you can measure your campaign’s full scope of impact—well beyond “Did it get into the mailbox?”

Good, clear, clean data is one of the best tools in your marketing arsenal. Well-measured data can tell you what you need to know to connect with your customers. You’ll understand what works AND which messages stand out. 

Do you want to learn how your business can increase measurable results from direct mail campaigns? Reach out to Heritage today to discuss your next omnichannel print strategy and how we at Heritage can deliver even more than you expected.