The success and viability of any business depends upon the return on investments (ROI) that a business generates. When you invest your time, money and passion in a business, you want to know how it has shaped your business, and measuring the returns on investment is a very effective way to know how successful your venture is.

Direct mail marketing is also an investment which you make to expand or sustain the size of your business, and therefore, you should be able to know the ROI of Direct Mail. To find the ROI of your direct marketing campaign, there are certain parameters that can be used.


Calculating conversion rate is the best way to know the ROI of your direct mail marketing campaign. Conversion rate is the percentage of the recipients of your direct mail who become customers. To track conversion rate, you can ask your customers how they came to know about your services and products. Also, by offering some discount coupons for customers who come to you through direct mail marketing, you can calculate the conversion rates. By knowing the exact figure of the customers that have been influenced by your direct mail marketing, you can gauge the ROI and hence success of your direct mail marketing campaign.


Another way to keep track of your investment is to find out the cost of each lead generated. In direct mail marketing, a lead is that prospective customer that shows interest in the product and service that you offer to him via direct mail. To get the track of those leads, you can use different methods. You can use QR codes on your direct mail and that can help you track those recipients who will end up on a unique landing page. From the hits on that page, you can get the number of leads that are generated through direct mail. Through dividing number of leads by the overall cost of your direct marketing, you can find the cost per lead and that figure can also help you in determining the effectiveness of the targeted mailing list that you would use for direct mail marketing.


Another way to know the utility of direct mail marketing to your business is to find out the cost of acquiring a customer. If your direct mail marketing is intended to serve the time period of 6 months, divide the overall expenditure of your direct mail marketing with the number of acquired customers in the same time period to find the cost of acquiring each customer.

Direct mail marketing is an effective marketing tool and provides its users with good ROI. The ROIs of direct mail marketing can be increased by using the targeted mailing lists created with diligence and details. To increase your ROI of direct mail marketing, you can contact us to get your direct mail marketing strategy.