Recently updated on November 16th, 2023 at 08:17 pm
Postcard campaigns like direct mail are tried and tested marketing tools. However, measuring your success may pose a challenge. With so many variables at play, from design to distribution, understanding the impact of your efforts is crucial. In this article, we delve into the key metrics that can shed light on the effectiveness of your postcard campaign and the long-term value of your marketing efforts.
Response Rate – This refers to the percentage of recipients who respond or take a specific action after receiving the postcard. It’s calculated by dividing the number of responses by the total number of postcards sent. It’s important since it gauges the immediate impact of your postcard campaign, indicating how effectively the design, message, or offer resonated with the audience. A successful response rate for direct mail campaigns is usually between 1% and 5%, but this can vary based on the campaign’s nature and the targeted audience.
Return on Investment (ROI) – This metric measures the profitability of the campaign. It’s calculated by subtracting the cost of the campaign from the generated revenue and then dividing it by the cost. This helps determine the financial viability of a postcard marketing effort, which can reveal whether the returns justify the investment.
Conversion Rate – Conversion rate denotes the percentage of respondents who take a further desired action, such as subscribing or making a purchase. While response rate measures initial interest, conversion rate measures the actual effectiveness of turning that interest into something tangible. Success varies considerably based on the industry, but for e-commerce, a typical online conversion rate hovers around 1% to 2%.
Cost Per Acquisition (CPA) – CPA calculates the cost incurred to acquire one customer from the postcard campaign. It indicates the efficiency of the campaign in terms of expenditure and helps in budgeting future campaigns. To gauge success, lower CPAs are preferable. The acceptable range varies based on the industry and the lifetime value of a customer.
Average Order Value (AOV) – AOV is the average amount spent by customers who make a purchase after receiving the postcard.It provides insights into the converted audience’s spending behavior and helps predict revenue from future campaigns.
Redemption Rate – If the postcard includes a specific offer or discount, the redemption rate measures the percentage of recipients who take advantage of it. This gauges the offer’s attractiveness and can guide future promotional strategies. There are no specific industry-standard measures for success, but higher rates indicate successful promotions.
Undeliverable Rate – This is the percentage of postcards that could not be delivered to the recipient’s address. A high undeliverable rate can indicate outdated mailing lists or issues with delivery methods, which can result in wasted budgets. Typically, lower than 1% is considered good. It’s crucial to keep this rate as low as possible to ensure the maximum reach of your campaign.
Engagement Metrics – While this is a broader category, it generally encompasses metrics like the time spent interacting with a digital version of the postcard (if applicable), sharing rates, or secondary actions taken as a result of the postcard. Engagement metrics provide a deeper understanding of how recipients are interacting with the content, going beyond just primary actions like purchases. Here, higher engagement usually indicates more compelling content.
Postcard campaigns have always been a potent tool for connecting directly to customers. But as with any campaign, it’s crucial to look at metrics to understand its effectiveness. By zeroing in on critical details, marketers can gain valuable insight and refine strategies for the future. In the end, it’s essential to ensure that every postcard you send is not merely a gesture but has intentional thought behind it.
