Computer-Assisted Marketing

Results Measurement

One neat feature of direct-mail advertising is that you can easily measure results - and you should measure results, so as to know how your newcomer project is performing. Otherwise it's guesswork or plain prejudice (pre-judging!) - positive or negative.

In your mailer, you just need to incorporate a response mechanism, and then count the results.

It might be a coupon the recipient has to redeem, so as to claim a benefit. Count the coupons. Or it might be a gift offer (actually much the same thing) - he or she presents the letter or card you wrote, and asks for the goodie. Or (in a church for example) you might just say, "Please make yourself known after the Sunday Service for a personal welcome." Or you might even just count the revenues or attendance and see how much they increase after you mailed your newcomer piece. But be sure to think about what method of measurement you will use, and log its results. Then (and only then) you will know.

In order to measure a statistically valid result, allow for at least 1,000 mailers to have been read before making any conclusion; some scholars say the volume should be more yet. To rely on a smaller quantity is simply not valid.

The rule-of-thumb in Direct Mail is that you should see 1% of your mailers produce business. Get twice that, you're doing something really well; get half that, the project needs work. But as shown under Cost Justification, even one-tenth of one percent should break even!