Direct mail campaigns can drive significant results, but how do you measure their true impact? In this episode, Kalynn Hicks explains the tools and metrics you need to evaluate the success of your campaigns, including matchbacks, ROI, and lifetime value (LTV).
What is a Matchback?
A matchback compares the list of customers who made purchases during your campaign to the addresses you mailed to. This helps attribute purchases to your mailer, even when customers don’t explicitly mention it.
Matchbacks are valuable because many campaigns influence behavior indirectly. Customers might act on your mailer by visiting your website, calling your business, or stopping by without referencing the piece.
How to Calculate ROI
Return on investment (ROI) provides a snapshot of your campaign's profitability.
The formula is:
ROI = (Revenue Generated - Campaign Costs) ÷ Campaign Costs × 100
Example:
Revenue = $5,000
Costs = $2,000
Profit = $3,000 ($5,000 - $2,000)
ROI = 150%
This means for every $1 spent, you earned $1.50 in profit.
Understanding Lifetime Value (LTV)
While ROI measures short-term results, LTV evaluates the long-term impact of acquiring a customer.
Example: If your campaign acquires 10 customers, and each spends $500 annually for three years, the total revenue is $15,000. This transforms your $2,000 investment into a high-return strategy.
Fine-Tuning Your Direct Mail Strategy
If your results aren’t where you’d like them to be, consider:
Was the mailer targeted to the right audience?
Was the offer compelling enough?
Was the design professional and clear?
Did you provide easy response options, like a phone number, website, or QR code?
Direct mail combines art and science. By testing and refining your approach, you can find the formula that drives growth for your business.
Visit Upswell Marketing for expert guidance on your marketing strategies.
Follow on Instagram: @upswellmktg for more actionable tips.
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