When it comes to marketing, you understand the value of coming up with a strong message and finding the right audience. Perhaps you developed some buyer personas and built a robust campaign to address their needs and concerns.
Realistically speaking, though, you’re not going to sell everyone on the first try. In fact, it could take a while before a lead is ready to come to see what you have to offer. Perhaps the lead wasn’t in the market for your product initially, or maybe the customer couldn’t make it to your storefront right away.
Consistency is critical in marketing to ensure that you capture your audience’s attention for the long term. Brand awareness can make the difference between success and failure, particularly when first starting a business.
That being said, how do you know what’s working and what isn’t? Is your marketing as effective as it could be? Are you driving away as many customers as you’re attracting? While campaign generation and implementation are crucial, analysis is just as vital for your success.
Today, we’re going to discuss how to track and analyze direct mail campaigns. Direct mail marketing is a powerful tool for storefronts and retailers. However, if you’re not crafting the right message or delivering it the right way, you could be leaving a lot of business on the table. Let’s see how to ensure that you’re focusing your time, energy, and money efficiently.
Step One: Break Down the Numbers of Your Last Campaign
Before you can analyze anything, you need hard data. So, you will need to look at past campaigns to see how well they performed (or didn’t). You will want to break them down into a few key metrics.
- Response Rate – compare the number of mailers you sent out to the number of customers that came in as a result. If you’re not sure of the response rate, you will want to add tracking information (i.e., a coupon or claim code) to your next campaign.
- Conversion Rate – of the customers that came into your store from the mailer, how many of them wound up buying something?
- Return on Investment – what was your average order value from those customers? Take your total sales from the campaign and subtract the cost of sending out the mailer. Did you make money or lose some?
By detailing these metrics, it’s so much easier to analyze your progress and success rate. If you don’t have this data, you could be spending extra time and money on tactics that aren’t working. As we mentioned, if you don’t know your exact response rate, add a coupon or claim code to each mailer so that you can get that information.
Ideally, you’ll have done a couple of campaigns already so that you can compare data between them. Did one make more money than the other? Did you have a high response rate but a low conversion rate? Were your average orders smaller than you anticipated?
Once you can see the numbers, you know which metrics you’ll want to improve.
Step Two: Run A/B Tests
When it comes to digital marketing, A/B testing is relatively fast and straightforward. The most common form of this kind of testing is to create two different landing pages and direct leads to one or the other. The landing page that gets the most clicks or the highest conversion rate is the superior one, so you start using it for all of your leads.
With direct mail, it’s a little trickier. Not only that, but you have to be much more diligent, as you can’t afford to spend a ton of money sending out multiple mailers to different addresses. Realistically, you need to have a tangible understanding of your audience before testing a new strategy.
That being said, here are some ways that you can do A/B testing for direct mail marketing.
Send Unique Offers to Similar Demographics
Let’s say that many of your customers are middle-class families with two or more children. You can get a ton of demographic information from the Post Office before running a new campaign so that you can see the areas and addresses with these kinds of families.
Create two distinct mailers and send them to similar households. By keeping the demographics the same, you can get a better sense of which elements are working or not. When creating these unique mailers, focus on one particular aspect. This can include things like:
- Design/Layout – test new color schemes, fonts, or a more simplified layout of the mailer.
- Discounts – for one group, offer a percentage discount on the next order. For the other group, a fixed dollar amount.
- Messaging – on one mailer, focus the message on the money saved. On the other mailer, tell a story explaining the value of your products.
Overall, by focusing on one element, you can see the impact it has on your response and conversion rate. If you change too many things, you won’t know which components had the most significant impact.
Let Always Direct Marketing Help
Analyzing and testing your marketing materials is a necessary step toward building a successful business. However, it can take time and money to do right. Fortunately, Always Direct Marketing has the tools and experience to assist you. Let our dedicated team help you make the most out of each campaign. Contact us today to find out more.