Direct Mail Response Rates

You might be thinking of running a Direct Mail campaign and unsure about how to estimate potential response rates. Whilst various factors come into play, there are a few reliable guidelines you can follow.  

Assuming that your product is competitively priced, is in high demand, and customers encounter no negative obstacles during the purchasing process, we can begin to quantify the effectiveness of your direct mail efforts. 

You need to select the format of the mail piece that you are sending, with two main product types: a closed mail piece, such as a letter requiring opening, or an open mail piece, like a postcard or a small brochure, which doesn't require opening. 

Typically, you will see response rates for a postcard between 4-7% and for letters it is slightly lower at 3.5-5%. So which format should I use?  At Stannp.com, we advise that the most cost effective medium is a postcard.

Closed mail pieces are appropriate if you have a sensitive product you are selling which might have something to do with the recipient’s health or financial situation.  The fact that the recipient has to open the letter is a natural barrier and there will be some people who don’t.  It could end up stored with an old stack of letters on their desk.  By the time they get round to opening it the offer will most likely have expired.

Open mail pieces make an impact as soon as they hit the doormat.  As the recipient picks it up, they are forced to look at it and make a decision whether they bin it or put it on the fridge.

Another factor to consider is the data you are targeting with your offer. It could be your best customers, lapsed customers from over 5 years ago, or data obtained from questionable sources online. A prime example is insurance companies attempting to sell a new quote. Without the renewal dates of recipients, they only have a 1/12 chance of contacting prospects at the optimal time!