SMART BLAST

What response rate should I expect from a direct mail campaign?

It depends.

One of the advantages of direct marketing is the ability to measure response. That doesn’t mean, however, that direct marketers can predict response rates.

The reason is that many variables are at play:

- How focused is the list?

- How current and accurate is your list?

- How clear are your message and the benefits of your offer?

- How compelling is your offer?

- How does your competition stack up against you?

- How fresh is your offer and messaging?

- How strong is your brand and reputation?

These variables and others combine to influence response rate. If you’ve been mailing for some time, you should have a track record of response, and this should serve as your baseline of expectation. Your ‘control package’ should be the standard against which you test and measure for lift in response rates and overall improvement on the variables we listed above.

So what is a good response rate?

It still depends. Some mailers we know are thrilled with a 0.1% response rate; others need 1 or 2% to make it worthwhile.

By factoring in your target cost per lead and/or cost per new customer acquisition, along with the value of your new customer, you can calculate a desired minimum response rate.

If this seems achievable based upon all of the above, the best thing to do is test it with a small campaign and then evaluate the results. If your campaign is working well enough, split your next mailing into two groups and test a different offer, a different message, or a different list.

Now you’re on your way to learning what kind of response rate to expect.