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DIRECT MAIL CONVERSION TRACKING

April 26, 2021 by Ted Huntington Leave a Comment

Conversion tracking is critical to your direct mail success.

It is not enough to simply track your direct mail response rate to determine your level of marketing success, and you need to determine how many of those responses convert to sales or closes.

Let us do the math…

How many leads generated by your direct mail campaign converted to sales? You need a conversion formula, and here it is:

Conversion rate = Customers generated / Responses

For example:

  • 50 new customers, divided by 200 responses, equals a 25% conversion rate (.25).

Next, compare the conversion rate during your direct mail campaign versus a similar time span with no marketing:

Conversion rate with direct mail – Average conversion rate with no direct mail) / Avg. conversion rate without direct mail

For example:

  • 25% conversion rate with direct mail, minus 33% average conversion rate with no direct mail, equals -8% conversion rate dip with a direct mail campaign. (Do not panic. It is common to see slightly lower conversion rates on direct marketing campaigns. As a result, most firms see higher conversions for those who specifically sought out your company.)

CLARIFYING CONVERSIONS

Many marketers may assume a conversion equals a “sale.” However, direct mail campaigns are not always conducted to generate sales. For instance, some mailers are billing reminders, or class enrollment, or privacy opt-out notices. And there are many more examples. Therefore, conversions vary depending on the goal of your mailers. A medical office that mails past-due bill notices should gauge conversions that result in paid invoices, and they should know the percentage of paid bills resulting from the mailings.

RECORD KEEPING

It is imperative that you keep accurate records of all your mailings. Now, make sure your direct mail — and all of your marketing — is carefully and diligently tracked. And, in addition to helping you to better understand your marketing success, your superiors will likely need these numbers to justify the company’s marketing expenses. See the example below of an integrated marketing analysis spreadsheet.

Free Marketing Campaign Templates | Smartsheet

FOR MORE INFORMATION…

The bottom line — yes, conversion tracking is critical for your direct mail success. Contact Mail Manager, Inc., and we will gladly provide more information on how to succeed with your direct mailings. https://www.mailmanagerinc.com/get-a-quote/

Need some more convincing? Check out this article:

https://www.smallbizgenius.net/by-the-numbers/direct-mail-statistics/#gref

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Filed Under: Current Blog News Tagged With: direct mail conversion, direct mail formula, return on investment, ROI, sales

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