If you're considering starting a direct mail campaign, it's time to start measuring and optimizing it. Although it's impossible to predict the exact ROI, you can get an idea of the average direct mail response rate. This statistic will help you determine what elements are most effective in getting a response. Then, you can optimize your next campaign based on those results.
One major factor contributing to a low response rate is inaccurate address data. Many businesses invest in witty messages and sophisticated design, but neglect to validate their mailing lists. Inaccurate address data is not only a nuisance for consumers but it can cost a business a lot of money. That's why it's important to implement address verification software into your mailing campaigns. There are vendors out there like Inkit that offer advanced address checkers that automatically parse the format and verify each address. This increases your chance of reaching your customers and improving your direct mail response rate.
Direct mail response rates vary widely. For instance, household lists have the highest response rate of 9%, while prospect lists have a response rate of five percent or less. However, these response rates will depend on the type of campaign you're running. For acquisition campaigns, the response rate will be in the range of five to ten percent.
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