How to Determine If Your Direct Mail Campaign is Working

If you're trying to put your advertising into the hands of prospective customers, direct marketing is your best bet. However, direct marketing can also bring disaster to your company if you're not sure how to read the results.

This is because you don't have any control over what happens to your ad when it winds up in the client's house. Given the fact you're paying for each ad you send out, many businesses may be discouraged by the seemingly overwhelming cost.

A mindset like that is crippling, and you'll never see the true strength of direct marketing. Unlike other methods, such as advertising in a magazine or making a commercial for TV or radio, a solid direct marketing strategy can follow success by itself in a way nothing else can.

To use an example, say you choose to use a full color advertisement in your direct mailing, and you put a special number on the ad for them to call or a certain web address they can visit. Now you'll be able to figure out just how many customers are picking up the phone because of your direct mail ad. Or, if you're using a letter, put an envelope inside the one you sent them for them to send back.

This way, you're better able to determine the response rate. Simply look at the number you sent out, and compare it with the number of people who respond. From there you can quickly add up the percent of your campaign's success rate by taking the number of people who responded, and divide that number by however many ads you sent.

Because you're paying for each person you send something to, it's important to figure out early on what that cost is. Figure out the complete cost of the project, and decide if it offsets the number of your recipients. Looking at this data, you can figure out what your cost per person is.

Armed with this information, it will be easier to determine how successful your marketing efforts are. Compare the number of those customers who responded with the overall cost of your marketing efforts. If it turns out you're actually spending more money than you're receiving, it's time to shift the focus of which demographic you're aiming at...or maybe you just need to redesign your ads.

Direct marketing is a famous and long-proven marketing method. If done correctly, you should eventually get a higher response to offset the cost you spend on each person. Just keep in mind that you need to attach that special number or website for the customer to call, or include an envelope to encourage a response.