Direct Mail ROI

With all the attention surrounding digital communication channels – e-mail, mobile and social media – some think direct mail isn’t as relevant as a marketing tool. However the Direct Marketing Association’s annual Direct Response Rate Report of 2015 trends shows the ROI on direct mail continues to outperform all digital channels.

Response Rates: Direct mail achieved a 4% response rate with a house list, and a 1% response rate with a prospect list. This rate compares favorably with the following rates: 0.2% for mobile marketing, 0.1% for e-mail, 0.1% for social media, and 0.1% for paid search. The overall response rates for digital channels were close to the same whether using a house or prospect list.

Cost-per-acquisition: Despite the costs associated with direct mail – printing, mailing, postage – that are not associated with digital channels, direct mail has a very competitive cost-per-acquisition at $19. Mobile and social media both stood at $16 and $18 respectively, while paid search showed a wider range of $21 to $30.

Multi-Channel Strategy: Marketers continue to pursue a multi-channel strategy, with 44% indicating that they will use three or more channels. The most popular channels are direct mail, e-mail, and social media.

Best Results: Of the marketers using direct mail, oversized envelopes exceeding 6″ x 9″ saw the best response rate at 5%; postcards realized a 4.25% response, and letter-sized envelopes saw a 3.5% response.

Contact Excalibur today at 336.744.5000 or to learn what techniques successful direct marketers are using to boost their direct mail results.