What Direct Mail Response Rate Do You Need for Your Campaign to Break Even?
June 12th, 2009 by Bob Bly
“Break-even” is the response rate a direct mail must generate to produce sales revenues equal to the cost of the mailing.
But what is that response rate for your mailing? It depends on 5 factors:
* Postage.
* Printing.
* Letter shop charges.
* List rental cost.
* Price of product being sold.
* Cost of goods for product.
You can input these factors here and have my free DM ROI software instantly calculate the response rate you need to achieve break-even:
This entry was posted on Friday, June 12th, 2009 at 8:17 am and is filed under Direct Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
June 12th, 2009 at 3:09 pm
[…] Read more: What Direct Mail Response Rate Do You Need for Your Campaign to … […]
June 12th, 2009 at 6:07 pm
Great idea! I wish I would have thought of it!
I’ve done the math more times than I can remember…but you made the calculator:)
I’ll likely use it often.
June 22nd, 2009 at 11:21 am
[…] What Direct Mail Response Rate Do You Need for Your Campaign to … […]
January 20th, 2010 at 11:33 pm
The QUALITY of the list you are renting is more important than the price.
Testing of lists is required.
June 10th, 2010 at 8:22 am
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November 16th, 2010 at 4:26 am
Nice Tip! No doubt break even is very important to understand the cost of mailing list. Direct Mail is a strategic tool that can be used to achieve almost any business objective. You can start your direct mail program with something as simple as a letter to your best customers.
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November 4th, 2011 at 12:35 pm
Direct Mail Response Break-Even
Calculating your DM response break-even point is important to all mailers….especially new mailers who may not yet understand the dynamics of a successful direct mail campaign. We offer a simple widget to use to figure the percentage response needed to “break-even” on their DM investment. You can also add the widget to your website or blog for free. Go to http://www.bbdirect.com/direct-mail-response-break-even-calculator.php
All the best.
Brian Berg / BB Direct
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Direct mail response rate refers to the percentage of people who respond to a direct mail campaign. It’s an important metric to consider when planning a direct mail campaign because it helps you determine the success of your campaign and whether it’s worth the investment. In order to break even on a direct mail campaign, you need to reach a certain response rate, which will depend on a variety of factors including the cost of the campaign and the value of each response. Understanding the response rate you need to break even can help you optimize your campaign to achieve maximum return on investment.
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