Measuring Direct Marketing Response
In direct marketing there is no cut and dry methodology or guide that will be guaranteed to turn out the best results for the company’s money. So the trusty marketing executive must test upcoming campaigns to forecast optimum effectiveness. Advertising, by nature, is a bit of an educated gamble in terms of ROI, return on investment. In other words, does the ad campaign make you worthwhile money in return?
Because there is no sure fire marketing method, the fight over where to spend advertising dollars is one that every marketer faces. Unlike a lot of other advertising mediums, direct mail allows for a very quick ROI gauge. Whether using email or postal mail, there are several ways that the responses can be measured for effectiveness. Think about all the junk mail you receive – virtual and postal. Most of this flow is direct mail campaigns at work.
Let’s first look at the conversion rate. Conversion rate is applicable to both postal mail or email and measures the response to your “call-to-action” of your sales offer. Did you tell interested clients to sign in to your website? For postal mail recipients, did you ask that they call a specific number and mention a sales code for a discount on your product? Did they buy your product after receiving your ad? These are all ways of measuring conversions for postal direct mail.
Measuring conversions online is becoming very accurate, thanks to web cookies. Cookies, as per www.whatis.com, are “…information that a Web site puts on your hard disk so that it can remember something about you at a later time. Typically, a cookie records your preferences when using a particular site.” A website can track when a user visits the site for the first time, possibly in response to a call to action from your postal or email direct mail ad.
Considering the extended use of email nowadays, for all sorts of communications, it’s safe to say that it’s easier to measure direct mail responses when the ads are sent online. There are three possible ways to do this, and they are all useful in gauging the success of your direct mail campaign.
The bounce rate of an email measures the percentage of the email that is undeliverable. Either the address doesn’t exist, the recipient server is having issues or you’re email gets dumped into a SPAM blocker. The reason for these bounces can be searched out by your ISP, Internet Service Provider, or your technician. By analyzing the reason behind the bounced emails, you can update your recipient address list to be more effective.
The open rate, the percentage of email that arrives at the destination email and is opened, also lets you see how accurate your contact list is. If you have sent an opt-in email, asking for the recipient to sign up to your website, you’ll see the highest percentages. HTML emails with graphics allow the server to generate a count when the email is opened. Be careful with HTML, as recipients email servers can junk emails with graphics or leave out the picture altogether for security purposes, making the email unusable. Adding a message in the email that it must be viewed in HTML can help with this problem.
Along with HTML emails, a click-thru option within the email can be used to allow your direct mail recipients direct access to you website. This measuring tool acts like the conversion rate to track replies in that it can be counted thru software attached to your website as the user “clicks in”. Some software comes with a reporting service that allows you to view the success rate of the click-thru option on an interim basis.
Measuring direct mail response is integral to increasing your rates of a successful ad campaign. Keep in mind the many options that exist to do this, and that they can all work together to paint a very clear picture of your direct mail campaign’s viability to make the most of your advertising dollars.
Posted at 2:43 PM


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