All too often, busy small business owners neglect to measure marketing results. Tracking your promotional efforts can seem like a lot of work. But marketing costs money. Without the ability to track and measure, you can’t make the best use of your budget. Thankfully, measuring effectiveness of mailing campaigns is not difficult.
Here are three sure-fire ways to measure and manage effectiveness of your mailing campaigns. Once you get in the habit, you’ll be a much smarter marketer.
1. Track response volume.
Often postcards require prospects to call for an appointment or schedule service. You can use a special phone number to easily track those calls as well as conversions.
Track in-store visits
If you’re a retailer, restaurant, gym or spa, you can design your postcard to serve as a redeemable coupon people can bring in to get their free appetizer, membership trial or merchandise discount. Collect those postcards to track response. Of course you always want to ask customers you don’t recognize “how did you hear about us?” to track all your marketing, not just effectiveness of mailing campaigns.
Track website traffic
If your CTA gives prospects a QR code or campaign-specific web address to respond, your website analytics will tell you the number of leads who visited your website and how many converted by downloading, signing up, etc. to capture your offer.
Often, it’s a good idea to include more than one offer on your direct mail postcards, to attract interest from multiple segments of your target audience. You might offer both a free consultation for new patients and a discount on Invisalign braces or teeth whitening to upsell existing patients.
But in order to determine the effectiveness of mailing campaigns, you need to know which offers are drawing the greatest response. That way, when it comes time to revise your marketing content, you’ll know which offer(s) to focus on to produce the most new revenue.
2. Track revenue.
The point of marketing your business is to increase your earnings. So while it’s nice to count heads and it’s important to identify which offers work best for you, the real question is how much income are you generating?
As prospects respond to your call to action, be sure to associate a dollar amount with each of them. Again, if your postcards include multiple offers, you’ll want to track revenue generated by each one along with response volume. Remember that a free offer will not generate immediate revenue, unless it’s available only as a “gift with purchase” when your new customer buys something.
That underscores the importance of ongoing customer purchase tracking. Your offer gets them in the door, then it’s up to you to provide excellent products or service and an overall experience that assures they will continue to do business with you.
3. Pull it together by computing ROI.
Tracking response rates and revenue gives you a snapshot of your marketing performance and helps you better manage your marketing efforts. But what you really want to know is the return you’re getting on your investment. That makes measuring the effectiveness of mailing campaigns an ongoing proposition.
ROI compares new revenue generated to the cost of your mailing. If you paid $1000 and brought in $2000, that’s a 200% ROI.
Repetition is essential for successful marketing. When you send the same mailing to the same group of recipients over several months, you can print one large quantity of postcards to serve several mailings. You gain economies of scale with your printing, and once your initial mailing has generated enough revenue to pay for printing and design or other start-up costs, you’ll only have prep and postage to pay for with subsequent mailings.
The revenue you continue to generate drives your return on investment higher and higher.