How do I measure the success of a direct mail campaign?

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Common methods for measuring auto shop marketing direct mail campaign success include response rate (number of calls, number of web visits, car count), conversion rate, cost per acquisition (CPA), and average revenue per order (ARO). To measure the success of a direct mail campaign, you first need to know what your goal for the campaign is. This will then define what method of measurement you will use to determine success rate.

 

Start with Your Direct Mail Goals

Start by defining the goal of your direct mail campaign. It could be to increase leads, customer bookings/sales (increase car count), or improve ARO. Once you decide on a goal, you can tailor your auto shop marketing to target that goal.

 

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Response Rates

When measuring the success of your direct mail campaign, you will use different calculation formulas based on your goal. If your goal is more leads for your repair shop, then measure your response rate. These methods will compare the number of people you directly mailed to the number of people who responded or contacted your business. PostGrid suggests that the average response rate for direct mail is 9% for internal mail lists and 4.9% for prospecting lists. In our experience, direct mail response rates are closer to 0.3% – 1.0% in the early innings of a direct mail campaign and improve after the first year.

 

Conversion Rates

If your goal is to increase customers, measure the conversion rate. This method compares the number of people you mailed to the number of people who paid for a service appointment.

 

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Cost Per Acquisition

Measuring cost per acquisition (CPA) helps you measure the cost of acquiring a customer. Divide the total cost of your direct mail campaign by the number of new customers you gained from it.

 

Average Revenue

Tracking the average revenue per order will help you understand the buying power of your target customer. This can help you predict the growth in revenue as you grow your car count.

 

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Return on Investment

Finally, you can measure your return on investment (ROI). This will tell you if the campaign was profitable for your tire and auto repair business. Use this formula: ROI = (Revenue Generated – Cost of Campaign) / Cost of Campaign

Additionally, the Conceptual Minds team has built easy to use ROI calculators to help you predict your ROI.

 

Single Auto Shop Operator ROI Calculator

Multi-location Auto Shop Operator ROI Calculator

 

Let Conceptual Minds Handle Your Direct Mail Analytics

Struggling to wrap your head around or wrangle time for direct mail analytics or to ensure whether your direct mail efforts are truly paying off? We can help! Our Marketing Coaches are experts in designing, executing, and measuring direct mail marketing campaigns. Contact us and let us help you make the most of every mailer you send!

Learn About Conceptual Minds

As veterans of the automotive industry, the Conceptual Minds team are experts at growing car counts through effective and personable marketing. If you are unsure of your current marketing strategy and would like some guidance, contact us today.

Need help with direct mail marketing for your auto repair shop?

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