TABLE OF CONTENTSHow to Track Direct Mail: Tracking Methods and AnalyticsDo you measure your campaign performance or just make guesses and assumptions? A lot of marketers still use the old-school method of merely comparing sales before and after a campaign. They might get a sales average of the past few months to compare against the sales happening in the months after the campaign. Not only is this method illogical in many ways, but it is also highly inaccurate and can never tell you what is what. Modern marketers have embraced various tracking mechanisms to measure a direct mail campaign’s performance. These tracking methods eliminate the guesswork and give you precise numbers to measure your campaign success. This way, you can know what kind of direct mail works the best for you. Marketers can draft reports, campaign insights, and analytics to improve further campaigns. In this blog, we will understand how tracking works and what tracking methods are commonly used by direct mail marketers. Determine Your Measurement GoalsBefore setting up a tracking system, it is ideal if you specify your goals clearly. These goals can help you understand which tracking method will be most effective for your campaign. Is your goal to:
What do you wish to be the end result? On the basis of such questions, you can exactly know what you want to measure and find out. Hence, determining measurement goals is your very first step towards tracking direct mail. Different Ways to Track Direct MailTrackable Phone NumberIncluding a trackable phone number on your direct mail items is one of the most popularly used tracking methods. Make sure to get a toll-free number that forwards all calls on your business line. Marketers can then get a clear count of how many calls were forwarded through that particular toll-free number. This count can easily define the number of responses generated through a specific campaign. It is highly recommended to use a different number for different campaigns. With the help of call track and record solutions, you can know your respondents and also playback the calls if you need to. Trackable and Personalised URLsIf you are simply printing your website link on all your mailpieces, sure, you would get some clicks and visits. But, how would you know that a certain person visited your website as a result of a direct mail campaign? This is when campaign-specific URLs come into the picture. There are two types of trackable URLs: generic and personalised. Generic web addresses are the same for all the intended recipients of a specific campaign. For example, your website link is www.luxuryvillasforrent.co.uk; you can create a unique URL related to your mail content like www.luxuryvillasforrent.co.uk/christmas-sale. By including such a unique URL, you can use your website’s traffic analytics to know how many people visited your website using this campaign-specific link. Now coming to pURLs, they are a step ahead as you create a unique URL for every single recipient on your mailing list—for example, www.luxuryvillasforrent.co.uk/elijah-wilson. PURLs are created to add a personal touch to your web addresses that make people want to visit your website. These links take recipients to a landing page that is customised according to them. They help know each person’s interests separately so that you can measure better and have tabs on all your respondents. Use URLs as your tracking method when you have an offer that can be only claimed on your website or when you want recipients to read some customised information or watch customised videos. Hence, URLs are also an excellent replacement for video mailers that are rather expensive. Coupon CodesIncluding a unique coupon code that can be redeemed on your website, over a call, or at your store is always a sound-tracking mechanism. If you intend to accept redeemable codes over calls, instruct your staff to ask for the code every time someone calls up to place an order. It is very simple to measure responses through coupon codes; you just have to check how many times a certain code has been used. Additionally, coupon codes are excellent tools to drive people to purchase from you directly. Making your offer compelling and time-bound is the key. Marketers can always put more than one code on a mailpiece to test which code gets more responses. For instance, you put two different codes, “BUY1GET1FREE” and “40%DISCOUNT.” This way, you know what kind of offers attract your prospects the most. QR CodesQR codes also take recipients to a customised landing page, but unlike URLs, they are easier to use. All your recipients have to do is take out their phones and scan the code. People, especially teenagers and millennials, prefer QR codes to links any day. To know how many people scanned your QR code, you just need to check the number of visits to your customised landing page through your website analytics. QR codes also offer some scope for personalisation as you can change the shapes of the code for them to stand out. Like coupon codes, QR codes also work great when used alongside limited-time offers. Defining Direct Mail KPIsKey Performance Indicators (KPIs) are simply performance metrics that represent the success of your campaign. There are several metrics for judging your campaign performance, and six of them are mentioned below. 1. Response RateThe direct mail response rate is obtained by taking the total number of responses and dividing it by the total number of mail pieces sent out.
Response Rate = Total number of responses/ Campaign size
If you are wondering how to track direct mail, simply use this method as it is the easiest. However, make sure to count responses from all channels. 2. Conversion RateIf you think that some of your responses are not going to be converted, it is best to calculate your conversion rate and not just depend on the response rate to determine your campaign’s success.
Conversion Rate = Total number of conversions/ Total number of responses
The conversion rate is the percentage of your direct mail recipients that made a purchase. Companies that sell low-ticket products can choose not to calculate conversions as their response and conversion numbers are the same. For example, when someone orders a takeaway using your coupon code, it can lead to a response and conversion happening at the same time. 3. Cost Per Acquisition (CPA)The cost per acquisition or conversion is basically the amount you spent on the campaign divided by the total number of conversions.
CPA = Campaign cost/ Total number of conversions
This metric is used to determine profitability. 4. Average Revenue GeneratedIt is important to note how much revenue you have generated through a campaign.
Average Revenue Generated = Total revenue/ Total number of conversions
Though it should be calculated before the campaign, it’s never too late to measure and improvise. 5. Profit Per ConversionIf you wish to know how much profit you made on every conversion, you can use this KPI.
Profit Per Conversion = Average revenue generated – CPA
6. Return on Investment (ROI)The ROI is perhaps the most important of all the KPIs and tells you if you are at a profit or loss after the campaign.
ROI = Total profit generated – Campaign cost
If it is negative, it can later turn to be positive when your prospects buy from you after a while. 7. Customer Lifetime Value (LTV)While the above metrics give you an instant view of your campaign performance, never leave out customer LTV. Though your prospects or customers might not buy from you instantly, they might do the same over a period of time. This way, campaigns that generate a negative ROI can also turn out to be positive in the long run. ConclusionIt is essential to know how to track direct mail so that marketers can conduct successful campaigns and be well aware of their pros and cons. Measuring your campaign performance gives you a clear picture of where your direct mail marketing efforts are taking your company. This way, you can adapt, improvise, and win over more and more customers. PostGrid’s print and mail solutions can help you conduct well-planned campaigns and also track everything. With our smart tracking capabilities and campaign analytics, marketers can optimise their campaigns easily. Ready to Get Started?Start transforming and automating your offline communications with PostGrid The post How to Track Direct Mail: Tracking & Analytics appeared first on PostGrid UK. Via https://www.postgrid.co.uk/how-to-track-measure-direct-mail/
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