Are you put off by the task of measuring the ROI of your direct mail campaign? You may think it’s not as instant and easy as with your digital marketing. However, automated methods like QR codes, voucher codes and personalised URLS now provide the data you need to analyse the impact of your direct mail.

In this post we will explore these key direct mail analytics and how measuring them will improve and streamline your marketing going forward.

Key Metrics To Analyse

1. Response Rate

What is it? The response rate is the easiest and most common way to measure direct mail results. Simply divide the quantity you mailed by the number of responses you received. There are a number of responses you could measure including visiting a website, filling out a form, taking up an offer or making a purchase.

For example, if you sent out 5,000 items, and received 500 responses, your response rate is: 500/5,000 = 10 or 10%

Industry Standard: According to a study by the Post Office, direct mail campaigns average a 4.4% response rate, compared to 0.12% for email. This figure illustrates the just how powerful direct mail is at driving engagement.

2. Conversion Rate

The response rate alone does not tell you the full story – whether those people who responded converted into customers. You could have a high response rate but a low number that convert into a customer. That’s where the conversion rate comes in.

What it is? The percentage of responses that lead to the intended outcome, such as completing a purchase or signing up for a service. Simply divide the number of prospects who converted by the responses you received.

For example, if you had 100 conversions and 500 prospects, your conversion rate is: 100/500 = 0.20 or 20%

Why it matters: Conversion rates tell you how well your mail content resonates with your audience and encourages action. Post Office research suggests that direct mail can have a 10-30% higher conversion rate than other channels, provided the message is well-aligned with audience needs.

3. Cost per Acquisition (CPA)

To get a more rounded view of the success of our direct mail campaigns, we need to consider the costs involved.

What it is? CPA measures the cost of each new customer acquired through your direct mail campaign. To calculate, divide the total cost by the number of conversions.

For example, if your direct mailing costs £20, and they take up an offer of free shipping on their first order which costs £7, then the total cost = £27. CPA = £27 / 100 = £0.27 per customer.

Why it matters: Knowing your CPA helps you evaluate the financial viability of your direct mail efforts. By having a more lavish mailing that costs more to design and make, the cost to acquire a customer may be higher. However, if with this expenditure a prospect is converted and becomes a repeating buyer, the CPA will reduce.

4. Lifetime Value (LTV)

What it is? The total revenue expected from a customer over the entire duration of their relationship with your business.

For example, if your average purchase order is £1000, and your customer purchases 2 times a year and the lifespan is 5 years, then the LTV=£1000 x 2 x 5 = £10,000 per customer.

Why it matters: Direct mail may require a higher initial investment, but if it results in loyal customers, it can justify the cost. LTV is an important metric for understanding the long-term impact of your campaign.

5. Redemption Rate

What it is? For campaigns with a promotional code or special offer, the redemption rate measures the percentage of recipients who use the code. Simply divide the number of redemptions by the number of offers sent out.

Foe example, if 150 people redeemed an offer, out of 2,000 offers sent, then the redemption rate = 150/2,000 = 0.075 or 7.5%

Why it matters: Redemption rates help assess the effectiveness of your offer. Consider offering exclusive discounts to further entice your audience and boost redemption rates.

Ways to Track Performance

Several tracking tools are available to help you monitor the above key metrics:

  • QR Codes: Including QR codes in your direct mail allows for easy tracking when recipients scan and engage with your content online.
  • PURLs (Personalised URLs): Create unique URLs for each recipient or segment, which directs them to customised landing pages and allows you to track their journey.
  • Voucher Codes: Distribute unique voucher codes to measure how many recipients make a purchase based on your direct mail offer.
  • Phone Call Tracking: Include a dedicated phone number to track calls resulting from the campaign. Many call tracking software options can provide you with data on call duration and call source.

The Role of Promotional Merchandise

Adding promotional merchandise to your direct mail campaign can further improve engagement rates and brand affinity.

Studies by the Post Office suggest that recipients of direct mail with a physical gift, like branded merchandise, are significantly more likely to recall the brand, engage with the offer, and make a purchase. Promotional gifts can:

  • Enhances Brand Recall: A tangible item, such as a branded pen, mug, or notebook, acts as a constant reminder of your brand. When customers use these items regularly, it reinforces your brand presence in their daily lives. BPMA research reveals that 89% of consumers can remember the brand on a promotional item that has given to them in the past 24 months.
  • Builds a Positive Brand Image: Sending useful, high-quality promotional items creates a positive impression of your brand. Your customers are likely to perceive your brand as thoughtful and customer-focused, which can further strengthen loyalty.
  • Boosts Engagement: People are naturally drawn to free gifts. Including a useful promotional item encourages customers to engage with your message, increasing the likelihood of conversion.

The Post Office study also indicated that campaigns featuring promotional merchandise saw a 15-20% higher response rate than those that didn’t. This suggests that the investment in branded items can significantly amplify campaign performance.

Multichannel Integration

Combining direct mail with digital channels is one of the most effective ways to maximise the impact of your marketing campaigns. This hybrid approach creates a cohesive and engaging customer journey, leveraging the strengths of both physical and digital touchpoints.

By following up your direct mail with digital tactics, you can expect:

  • Enhanced reach
  • Stronger brand recall
  • Improved conversation rates

Plus, digital tracking tools provide detailed insights into user behaviour, while direct mail analytics offer complementary data to create a holistic view of your campaign performance.

As well as the above tracking methods, you could incorporate digital with:

Email Follow-Ups: Reinforce your message and provide additional opportunities for engagement with a follow up email. For example, after sending a postcard, email a reminder with similar messaging. You can then measure the number of responses and CTA’s you get from the email follow ups.

According to a study by the Data & Marketing Association (DMA), combining direct mail with digital channels, such as email, can increase response rates by 63% compared to using direct mail alone.

Social Media Remarketing: Target direct mail recipients with ads on social media platforms like Facebook or Instagram. This method helps you to increase visibility and a consistent message across multiple touchpoints.

Incorporate Digital Incentives: Include digital promo codes or discounts that recipients can redeem online. This will encourage online engagement and make tracking the campaign effectiveness easier.

Direct Mail Call-to-Action for Online Engagement: Use direct mail to drive online activity, such as signing up for a webinar, joining a loyalty program, or downloading a mobile app.

For example, if you are an event organiser and you want to encourage attendance at your next event, you could send out a physical invitation (with a branded gift for extra engagement) which includes a QR code, to a personalised RSVP page. You could then use social media ads to retarget the recipients who clicked on the link but didn’t register, to help to increase attendance rates.

Key Metrics to Measure Integration Success

Cross-Channel Conversion Rate

What is it? The percentage of recipients who move from offline direct mail to take action online.

For example, A direct mail campaign promoting an exclusive sale includes a personalised URL (PURL) for each recipient. Of the 1,000 recipients, 150 visit the PURL, and 50 complete a purchase. The Cross-Channel Conversion Rate = 50/1000 = 0.05 or 5%

Click-Through Rate (CTR):

What is it? The number of times a link is visited and clicked on. This is relevant for when QR Codes and PURLs are used in your direct mail items.

For example, you send postcards with a QR code linking to a landing page. Out of 500 postcards, 75 recipients scan the QR code. So the CTR = 75/500 = 0.15 or 15%

Audience Overlap:

What is it? Add the number of recipients who engage with multiple touchpoints in the campaign (e.g., direct mail and social media).

For example, You run a retargeting ad for recipients of a direct mail piece. Of 500 recipients, 200 engage with both the mailer and the ads = 200/500 = 0.4 or 40%

Overall Campaign ROI (Return on Investment):

What is it? The total revenue generated from the integrated campaign compared to the total cost. Evaluate how the integration of channels impacts overall revenue compared to single-channel campaigns.

For example, You spend £10,000 on a campaign that combines direct mail and email follow-ups. The campaign generates £40,000 in revenue.

ROI = (Revenue – Cost)/Cost x 100 = (40,000-10,000)/10,000 = 3 x 100 = 300%

FAQs About Direct Mail Analytics

  1. How can I measure the ROI of my direct mail campaign?

Track all your marketing campaign expenses (like printing, postage, and promotional merchandise) and compare them to the revenue generated from conversions. Use metrics like CPA and LTV to gauge your overall ROI.

  1. How often should I analyse my direct mail metrics?

Reviewing your metrics monthly or at the campaign’s end allows you to spot trends and make timely adjustments for future campaigns. Regular analysis also helps identify which types of offers or audiences perform best.

  1. Can direct mail work alongside digital marketing?

Absolutely! Many successful campaigns combine direct mail with digital strategies, such as email follow-ups, retargeting ads or social media. This integrated approach reinforces your message and can increase your success rate.

  1. How do I choose which promotional items to send?

Select items that are practical, branded, and align with your audience’s preferences. For instance, eco-friendly products or office supplies may appeal to corporate clients, while lifestyle items like reusable bags or drinkware may resonate with a broader audience.

  1. What should I do if my direct mail response rate is low?

Low response rates could be due to factors like mailing list quality, offer relevance, or design. Try testing different variables (A/B testing) to see what engages with your customers, and don’t hesitate to seek feedback.

Conclusion

Direct mail analytics is a powerful tool for measuring the effectiveness of your campaigns and ensuring you see a return on your marketing spend. By understanding key metrics such as response rate, CPA, and LTV, and by incorporating promotional merchandise, you can elevate your campaigns to achieve outstanding results. Direct mail remains a valuable channel when used strategically, especially when combined with physical, branded items that leave a lasting impression.

Direct mail analytics not only makes your campaign measurable but also empowers your business to adapt, evolve, and optimise. As you refine your direct mail strategy, remember that a thoughtful, data-driven approach is your best path to long-term success.

You May Also Be Interested In:

Need branded merchandise for your next direct mail campaign? We are a 40 years BPMA approved promotional merchandise distributor. We can guide you to the perfect gift your brand will be proud of. Get in touch with us today.