Direct Mail Statistics – How To Test Direct Mail Without Losing Your Shirt

by Jason

UPDATE: There’s a very good direct mail course called Offline Arbitrage that just came out.  I’ve been doing direct mail for a long time and it’s pretty solid. **

Direct Mail Statistics

Direct Mail Statistics

At some point most small or new businesses decide to try a direct mail marketing program. Direct mail is one of many ways for a business to market their product or services. One of the first things you need to consider are the Direct Mail Statistics and before you embark on a direct mail campaign you need to estimate what your typical response rate should be.

It can be very hard to estimate what the response rate might be on some campaigns, so it is helpful to keep in mind what the industry average is. The industry average response rate is around 2.6%. Keep in mind though that is just an average. If you count on getting a response rate of 2.6% you might be really disappointed when your response rate is possibly as low as .2%. Also take in to account your product or service. If you have a high-end product or service then a .2% response rate might be average for your industry and still a very good response rate.Keep in mind that these Direct Mail Statistics are the industry average.

A good way to figure out what kind of response rate your looking for is to figure out what your break even point is going to be. This is the percentage of sales achieved from the direct mail campaign that will be needed in order to cover the costs of the direct mail campaign. If your break even point is too high you might want to reconsider doing the campaign or maybe changing things to make it cheaper.  Direct Mail Statistics won’t help you figure out your own break even point, but they can help you decide if your campaign might be close to the goal of breaking even.

Direct Mail Statistics can help you to decide whether a campaign will possibly work, but sometimes it is best to just try out a small campaign to see If the smaller campaign works well then try increasing the size of it. If it doesn’t, then try making some changes before deciding it isn’t working. No matter what, always keep your expectations on the outcome at a reasonable level. It is better to underestimate and do better then you think you will, then to overestimate and do worse.

** If you’re looking for a step-by-step how to for direct mail marketing (namely marketing with postcards), there is an awesome course called Offline Arbitrage out.  It’s one of the best I’ve seen and my team and I use it on a daily basis to profit from direct mail. **

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Jennifer (www.triadexcardmailers.com)

Unfortunately, the average industry redemption rate is 1/2% to 1% on direct mailings. However, what I have seen work really well is a brand new piece that I am sure most companies have not yet seen. It is a laminated card mailer that has consistent record breaking redemption rates if 7-14%. The look and feel of this piece is significantly different than any other piece out there. This piece can be personalized for each recipient. Along with personalizing this piece, multiple versions of each offer can be tailored to different target markets. Laminated card mailers can also have an encoded magnetic strip for easy integration with an existing POS system and improved tracking.

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Jason

Thanks for the info Jennifer :0)

I can see how that would stand out and increase the direct mail statistics favorably. I actually got one in the mail the other day, advertising one of those free ‘ecommerce website’ dinner things and it was pretty nice. It made me think twice before throwing it in the garbage :0)

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