The benefits of direct mail continue to support dealerships like yours in driving more business through the door. As you begin your direct mail marketing campaign, you may be wondering how you measure its overall success.
The experts at Epsilon Individual Automotive can help you measure the success of your direct mail marketing campaign as well as provide clear, data-driven solutions to boost its success. Read on!
How Can You Measure the Success of Direct Mail Marketing?
Even with today’s digital world, direct mail continues to play an important and effective role for many businesses. In fact, 58% of the mail received by American households is marketing mail.* If your dealership is in that mix, you may be wondering how to measure your campaign’s success.
With the experience and data-driven solutions at Epsilon Individual Automotive, we can help you track the success of your direct mail marketing. Here’s a quick overview of the steps we’ll take before and during your campaign:
STEP 1. Set a Clear Goal
To begin your direct mail marketing campaign, you’ll need to set a clear goal. Perhaps your goal is to boost pre-owned sales, or maybe you want to promote a limited seasonal or holiday special. Whatever your goal for your dealership is, you’ll need to identify it to best determine the specifics of your mail.
STEP 2. Define Your Metrics
We can measure the success of direct mail marketing with numbers and marketing data. Depending on your goal, we can define the metrics of your campaign. One number we’ll keep an eye on is your Return on Investment (ROI). ROI is calculated using the following equation:
ROI = Net Profit/Total Investment x 100
In many cases, direct mail can offer a 29% ROI, which is nearly equal to the ROI of social media.*
STEP 3. Start Your Campaign
With your goal set and your metrics defined, we can send out your direct mail! We’ll pay close attention to numbers like ROI as well as website views determined by personalized URLs and QR codes included in your mail. From there, we can make adjustments to your advertisements and ensure continued success.
Our Automotive Data Solutions
At Epsilon Individual Automotive, we specialize in automotive marketing. Using our automotive data solutions, we can make sure your mail gets to the right people, based on automotive history, family size, and other important demographics.
Our automotive data solutions include:
- SureDrive Data
- Real-Time Credit Score
- Lease/Loan Enders
- Autoproval
- Saturation
Along with data-driven solutions to boost the success of your direct mail marketing campaign, we have a full in-house production studio to produce your mail. Our creative team works hard to make an eye-catching design, so we can have your advertising mailed out in around 72 hours.
Why Direct Mail Marketing Can Be Effective
In an era dominated by digital communication, direct mail offers a tangible and personal touch that often resonates more deeply with recipients. Here’s why direct mail marketing can be particularly effective:
Tangibility: Physical mail provides a sensory experience; recipients can touch and feel the material, making the message more memorable.
Personalization: With data-driven insights, mail can be tailored to individual preferences, increasing relevance and engagement.
Less Competition: While email inboxes are flooded with promotions, physical mailboxes receive fewer marketing pieces, allowing your message to stand out.
Trust and Credibility: Physical mail often conveys a sense of legitimacy and trustworthiness that digital communications may lack.
What Makes a Good Direct Mail Marketing Campaign
Creating an effective direct mail marketing campaign involves several key components:
- Clear Objective: Define what you aim to achieve—be it increasing service appointments, promoting a new vehicle model, or enhancing brand awareness.
- Targeted Audience: Utilize data analytics to identify and segment your audience, ensuring the message reaches those most likely to respond.
- Compelling Design and Copy: Craft visually appealing mail with concise, persuasive language. Highlight benefits, include a strong call-to-action, and ensure the design aligns with your brand identity.
- Personalization: Incorporate personal touches, such as the recipient’s name or tailored offers, to increase engagement.
- Incentives: Offer promotions, discounts, or exclusive deals to motivate recipients to take action.
- Multiple Response Options: Provide various ways for recipients to respond—such as personalized URLs, QR codes, phone numbers, or in-person visits—to accommodate different preferences.
- Timing: Schedule mail drops to coincide with relevant events, seasons, or promotions to enhance relevance and response rates.
What Size Direct Mail Comes In
The size of your direct mail piece can significantly impact its effectiveness and cost. Common sizes include:
- Postcards: Typically 4″ x 6″ or 5″ x 7″. Cost-effective and ideal for brief messages or promotions.
- Letters: Standard 8.5″ x 11″ paper, folded to fit into envelopes. Offers more space for detailed information.
- Self-Mailers: Single sheets folded and sealed without an envelope, often 8.5″ x 11″ folded into thirds. Combines the benefits of postcards and letters.
- Brochures: Various sizes, commonly 8.5″ x 11″ folded in half or thirds. Suitable for showcasing multiple products or services.
- Catalogs: Multi-page booklets, sizes vary. Ideal for presenting a wide range of offerings.
Choosing the right size depends on your campaign goals, budget, and the complexity of the message you wish to convey.
How to Measure the Success of a Direct Mail Marketing Campaign
Evaluating the effectiveness of your direct mail marketing campaign involves several steps:
Set Clear Goals: Determine what success looks like—whether it’s a specific number of responses, sales, or an increase in website traffic.
Define Key Performance Indicators (KPIs): Establish metrics such as response rate, conversion rate, average order value, and return on investment (ROI).
Track Responses: Use tools like personalized URLs, QR codes, or unique phone numbers to monitor recipient actions.
Analyze Data: Assess the collected data to identify patterns, strengths, and areas for improvement.
Calculate ROI: Use the formula:
ROI = (Net Profit / Total Investment) x 100
This calculation helps determine the financial return relative to the campaign’s cost.
Adjust Strategies: Based on the analysis, refine your approach for future campaigns to enhance effectiveness.
Learn More About the Success of Your Direct Mail Marketing Campaign
A direct mail marketing campaign can be extremely beneficial in bringing more business to your dealership. At Epsilon Individual Automotive, we can help you measure the success of your campaign and provide automotive data solutions.
Contact us today to start your next direct mail marketing campaign!
