As a thriving dealership, you understand the importance of your return on investment, better known as ROI. Not only does it help your team project the success of your future automotive direct mail campaigns, but it also gives you a better understanding of how your dealership is performing in the industry.
But how do you get into the nitty gritty of your direct mail performance? Well, it starts with knowing what’s considered a good ROI for direct mail marketing campaigns.
Fortunately, the automotive marketing experts as Aspen Automotive are here to provide you with insight on the number that’s deemed as a solid ROI for direct mail advertising. Take a look!
Importance of ROI
As you probably already know, ROI is an important indicator in determining how much reward you’ll see from a particular course of action, like starting a new marketing campaign. This number is determined by taking a look at how much you spent on a marketing campaign compared to the revenue it brought.
This information can be used to look to the previously run campaigns to determine the effectiveness of running a direct mail campaign, a social media campaign, or how they’ll work together.
In a nutshell, ROI lets you know how positive an impact your marketing campaign will have on your overall dealership.
In order to track your ROI, you can utilize marketing tools and software—like Google Analytics, HubSpot, or call tracking—that are designed to give you quick glances into where your dealership stands in terms of your marketing campaigns.
While there are tools that you can use to track your ROI, you’ll find that calculating ROI yourself is just as easy as using software. In order to track your ROI from a direct mail campaign that has ended, all you have to do is use one simple equation.
(Revenue gained – Cost of marketing campaign) / Cost of marketing campaign
After plugging in your specific numbers, you’ll have your ROI in a matter of minutes
What’s a Good ROI for Automotive Direct Mail Marketing?
Now that you know how to calculate your ROI, what percentage would you count to be a successful campaign?
Let’s get straight to the point: a good ROI for household-bound direct mail for 2019 was around 41 percent.1 Why this number in particular? This is the median return on investment for household direct mailers across all industries.
Depending on the metrics to which you’re looking to compare your automotive direct mail campaign, what’s considered a good direct mail ROI can vary. For our purposes, though, the general return on investment median is a great way to start calculating your dealership’s direct mail success.
It’s worth noting that, since 2017, direct mail’s median return on investment has nearly doubled, placing it in third place behind email marketing and social media marketing as one of the most valuable advertising formats.
How to Boost Your Dealership’s Direct Mail ROI
Ready to increase the return on investment for your next automotive direct mail marketing campaign? Follow these simple steps and watch as your dealership receives better response rates and improved revenue as a direct result of your direct mailers.
Cater Your Content to Your Audience
Just as ROI estimates help you keep your budget in check, tailoring your campaigns to fit the needs and tastes of your targeted audience does much of the same in terms of controlling overall costs.
Rather than sending out a blanket direct mail campaign that doesn’t speak to the individual buyer, gearing the copy, photos, and offer on your dealership’s mailers ensures that you’ll get a higher response rate to a direct mail strategy that doesn’t dwindle your budget.
Lower costs + improved customer response = better return on your investment.
Another way you can cater to your audiences’ needs is taking pain points into consideration and by using data mining. For example, you could target individuals who have a lower credit score and may have been denied a loan elsewhere previously.
Taking their pain point of needing a car but not being approved into consideration, you can send out a pre-approval form, letting them know they’ve been pre-approved for a car loan through your dealership.
Make It Easy to Respond
No matter what type of offer you include in your dealership’s direct mail campaign, one thing must be consistent: ease of response.
Each direct mail that your leads receive should provide them with a phone number, email address, or personalized landing page to which they can go for more information. The simpler it is for your potential customers to engage with your dealership’s mailer, the more likely they are to do so.
Plus, the unique phone number and other contact methods you include on your auto direct mailer give your team a way to quickly measure the return on investment of your campaign.
Give Them an Offer They Can’t Refuse
Incentive is everything when it comes to automotive marketing. That’s why it’s paramount to include a tempting offer with your direct mailer.
Whether it’s a percentage off automotive service, a special new-car rebate, or some other type of special, you’ll boost the odds of a better response rate, and thereby a better ROI, by presenting your leads with an incentive.
Moreover, special offers equip you with yet another way to track the response rate of your advertising strategies, this time with coupon codes and vouchers.
Pair Your Next Automotive Direct Mail Campaign with a Good ROI!
Finally, another way to improve the return on investment for your dealership’s direct mail campaigns is by teaming up with an automotive advertising agency that boasts years of direct mail campaign experience.
Luckily, the team at Aspen Automotive knows exactly how to customize the design, messages, offers, and other details of your mailers to ensure a solid ROI for every campaign. Need some proof? No problem. All you have to do is give us a call or send us an email today!