Which Metrics *Really* Matter When You Send Direct Mail?
Metrics and data allow you to track what works and what doesn’t in your direct mail campaign. So how do you determine which metrics to choose from and what data to prioritize when building your campaigns?
1. Response Rate
If you are sending out a direct mail ad, it is likely because you want to make customers respond — ideally, by making a purchase. The response rate is a metric that lets you know how many people are responding to your campaign and how they are ultimately behaving.
The response rate is easy to calculate. Simply take the number of responses you get by the number of direct mail ads you sent to your mailing list.
2. Customer Lifetime Value
The customer lifetime value is another major metric that every business should track. You are probably aware of how much more it costs to get a new customer than it does to retain an existing customer. The customer lifetime value will tell you how much it is costing you to keep a customer.
Calculating customer lifetime value can be complex, but the basics are easy enough to understand — First, you take the total amount budget spent to get the customer in your pipeline, and then you subtract that number from the total amount you make over the course of your customer's loyalty.
3. Cost Per Acquisition
It’s great to get customers, but you need to track how much it costs to get those customers. Cost per acquisition is simple to calculate and a valuable asset to determine. First find how many orders you have received, then divide the cost of your campaign by that number. Once you have this figure, you can compare the cost per acquisition for your direct mail campaign to other marketing campaigns.
The direct mail team at Triple Crown Mail is here to help you get started with your direct mail campaign. Please contact us at www.TripleCrownMail.com to learn more!