Response Rate vs. ROI: Which Marketing Metric Is More Important?
Determining the success of a marketing campaign without solid numbers to analyze is like throwing darts in the dark; you may have a vague idea of where to throw, but it’s still a toss-up as to whether or not you’ll actually hit your target. If you are conducting marketing campaigns without measuring that campaign’s metrics, you are missing out on valuable insights that will tell you how to move forward with your future marketing efforts. Today, we will explore two metrics that are commonly misunderstood: Response rate and return on investment (ROI). Let’s take a look at why they matter.
How to Measure Your Direct Mail Marketing ROI
Direct mail marketing campaigns can become expensive if not executed correctly, and especially during times of economic hardship, it is particularly important to back up marketing decisions with solid numbers. The most commonly accepted method of quantifying the success of a direct mail campaign is to calculate its Return on Investment (ROI). It’s not enough to simply know how much a campaign costs up-front; you also need to know how much revenue that campaign brought in, to determine whether or not it was financially worth the investment. Let’s walk through the process of calculating your direct mail ROI.