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January 2005
Getting the Most Out of Your Direct Mail Campaign
By Sherry Prescott-Willis
Many companies look to direct-mail campaigns as a potential way to generate demand and increase sales. True enough,
studies show that direct mail can be effective when targeting customers with the right message. However, it’s important
to remember that direct-mail campaigns have an average response rate of only two to four percent. This means that your
company must set realistic expectations and goals in order to make the most out of your campaign.
Before launching head first into a direct-mail campaign, here are some things to consider:
Set Objectives and Expectations
Before doing anything else, make sure you have a planning discussion with your marketing and/or management teams
both to obtain their approval and determine the expectations, timing, budget, and overall objective for your campaign.
- Establish your objective. Is it to increase revenues, attract more customers, gain tradeshow exposure,
achieve brand awareness, or something else?
- Put it in writing. Championing the campaign will be much easier if everyone in your organization
understands what you intend to do.
- Evaluate your resources. Will you outsource or handle it in-house?
- Ask key questions. Are both management and marketing committed to the plan and objectives? Do you have a
solid plan for processing the leads you receive?
Know Your Target Audience
Understanding your target audience is critical to the success of your campaign. Be certain that you confirm
your customer profile and that you’re targeting the right age group with both design and messaging. If you’re not
sure whether a message will hit home with your audience, don’t use it. An unsuccessful campaign can hurt both your
budget and corporate image.P
Develop a Call to Action
When developing your objective, it’s important to include it in your call to action. Do you want them to buy your
product, respond to a Website offer, or call an 800 number and place an order? If so, make it clear. If you don’t
include a call to action, don’t expect a huge response.
- Spell it out! Clearly communicate your call to action in big, easy-to-read print.
- Check accuracy. Double-check Website links and phone numbers to ensure they’re current and accurate.
- Check internal resources. Can your call center or sales team handle thousands of calls and/or emails
generated by the campaign?
- Brief the sales organization. Training your sales team enables them to handle questions, which will
inevitably come once customers receive the mailers.
In addition to developing a clear, accurate call to action, you should also keep the following best practices in
mind when creating your final deliverables:
- Keep the campaign simple, using key messages tailored to your target audience
- Address industry problems and solutions succinctly in the copy
- Stay away from fads that distract from your key messages
Commit to Metrics
Although many companies may set up a metrics plan, some forget to follow it throughout the campaign. To help ensure success, it’s important that you:
- Have a mechanism in place for tracking response rates before the campaign begins
- Track results until the campaign is complete
- Evaluate the success of your campaign according to the metrics
Establishing basic metrics and goals is easy.
- Determine how many leads you’d like to receive.
Remember, the average response rate is two to four percent.
- Calculate your projected response rate.
The number of direct mail pieces mailed times the estimated response rate = projected leads.
For example, if you mail 100,000 postcards and estimate a 2 percent response, your projected
leads would be 2,000 (100,000 x .002 = 2,000).
- Confirm your actual response rate.
The number of pieces mailed divided by the number of leads received = actual response rate.
Using the same example, if you mailed 100,000 postcards and received 1,500 leads, your response
rate would be 1.5 percent (1,500 / 100,000 = 1.5 percent).
Be Realistic with Costs, Time, and ROI
When planning a direct-mail campaign, it’s important to evaluate the costs and timelines associated with
each stage of the campaign, as well as the anticipated return on investment. Is it worth the time and expense?
If you have a limited budget, a closer look at the costs may force you to re-evaluate where you will spend your
dollars. Remember, less than five percent of direct mail recipients actually read your message. If you choose to
outsource the project, you may need to set aside more time for managing both the project and the vendor(s), which
may add to your outlay or the time needed to complete the campaign.
Cut Costs Where It Counts
If you need to stay within a specific budget, make sure you don’t cut costs that may jeopardize your objectives
and lead-generation potential. Your goal is to get results. With direct-mail campaigns, it’s easy to cut costs, but
make sure to think it through. Here are some ways to cut costs that are worth considering.
Design
Consider a two-color instead of a four-color design to cut down on printing costs. Two-color direct mail pieces
can be just as effective as four-color options, as long as the message is clear. Obtain estimates from designers
who have good track records working with both options, and stick with designers who effectively use a clean and
simplistic design.
Copywriting
To keep costs down, consider writing pieces in-house instead of hiring an outside copywriter, or have an expert
who knows your product help you craft the right messaging. Also, proofread all copy and graphics.
Fulfillment, Postage, and Mailing
Investigate local fulfillment houses that handle quick turnaround with direct-mail campaigns. Often, they’ll
offer to print their postage indicia on your direct mail postcard or flyer, which will save you time and money.
Postage is also a cost that you can combine with the mailing at a fulfillment house. Just make sure you receive
a breakdown of postage costs in your estimates. The size of your direct-mail piece also impacts the cost. The
larger the piece, the more money you’ll spend.
Printing
If you’re not careful, this can be the most expensive part of your campaign.
- Allow at least two to four weeks for printing, and factor in time to receive bids from multiple vendors.
- Ask to see samples of direct-mail cards.
- Give some thought to the number of pieces you’ll need. Larger quantities typically bring the cost down.
- Consider using an online service such as 4by6.com—which bundles projects together—to cut printing
estimates in half.
Sales Lead Follow-Up
Instead of outsourcing, utilize in-house support staff to help track the campaign and conduct follow-up calls.
Stay on Track
When running your direct-mail campaign, constantly refer to your metrics and objectives to assess whether you’re
meeting your goals. Another great way to evaluate your campaigns on an ongoing basis is to preview your deliverables
with a few key customers—and then continue to keep them in the loop as your campaigns evolve. Not only will you
receive valuable input, but they’ll also feel good about contributing. Happy campaigning!
Sherry Prescott–Willis has over 14 years of strategic, product management, and channel marketing experience.
She specializes in both consumer and high-technology products, working with early- and mid-stage companies to develop
effective marketing initiatives at the product development and corporate level. Sherry has a proven track record for
developing successful marketing programs that impact the customer and drive results. For more information on this
article, contact Sherry at sherry_prescott@yahoo.com.
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