## Direct Mail Cost

On average, direct mail per piece costs can range anywhere from 30 cents to more than \$20 per recipient. As a business owner or decision-maker, you have a few options when it comes to strategizing the cost of your next direct mail campaign. Lol tier champions. Apr 03, 2020 Star Rating. Services Offered. Mail with confidence when you work with Gunderson Direct. Having been in the direct mail business for over 17 years (and having sent over 1.5 billion pieces of mail), they know a little something about making mail work for clients across America (and internationally).

Direct mail is a harpoon, not a net. It is most effective in a B2B campaign when it is used to reel in a leviathan, not a school of sardines.

According to the Data & Marketing Association, direct mail’s average response rate is 5.3%, in our research we’ve seen marketers that integrate offline and online channels report much higher levels of marketing effectiveness.

When most people want to see if direct mail is worth it, they calculate direct mail’s Cost Per Lead, then compare it with other channels. The math is about as simple as it gets:

This math also lies. Fake math!

If you run these numbers for a typical direct mail campaign you’ll usually get a dismal return. Direct mail is expensive, compared to digital marketing it appears crazy.

That’s because this formula ignores the real power of direct mail in a B2B campaign: it drives high-quality leads, faster. Another big miss with direct mail cost analysis is that direct mail’s real impact is on how well your digital channels perform. It is like adding nitro to digital marketing.

When you calculate the quality direct mail drives, it becomes an enormous ROI machine.

## How to Calculate if Direct Mail Makes Sense

Direct mail makes sense when you need to reach a leviathan: a high-value lead that has authority to directly impact deal size but is difficult to engage. Here’s how you calculate if direct mail makes sense.

Math Nerd Alert: Direct mail influences other channels and averages a 450% (or 4.5) lift to the response rate of other channels (Data & Marketing Association Response Rate Report 2016). To calculate this properly you have to multiply the impact by 5.5 (550%) to account for the other channels’ baseline.

2. Find an estimated value of a high-value customer.
3. Determine the number of high-value leads you get every quarter.
4. Determine the number of high-value leads that respond every quarter.
5. Determine the number of high-value leads you convert every quarter.
7. Now we add the direct mail component: take your answer in #4 and multiply it by 550% (or 5.5). This is the new number of high-value leads that will respond every quarter with direct mail.
• [Answer for #7] * [Answer for #6] = Total new customers

## How Well Did Direct Mail Work?

What are the best KPIs to measure for direct mail? In our experience, direct mail impacts B2B campaigns by increasing the average deal size and shrinking the time to close. Here’s how you can calculate that impact.

Direct Mail Impact on Average Deal Size

(Average Deal Size – Average Deal Size for Deals Not Influenced by Direct Mail)/Average Deal Size for Deals Not Influenced by Direct Mail = Direct Mail’s influence on deal size.

Direct Mail Impact on Pipeline Velocity

(Average Days to Close) – (Average Days to Close for Deals Influenced by DM) / Average Cost of Direct Mail Campaign

This formula gives the number of days each dollar spent on Direct Mail saves you in closing a deal. E.g. If you spend \$100 on an average Direct Mail campaign and your average # of days to close goes from 400 to 200, then (400-200)/\$100 = 200/\$100 = 2/\$1, so every dollar you spend on direct mail shaves 2 days off your time to close.

## How to Drive Digital Responses with Direct Mail

Direct mail should be used to drive digital responses, such as site traffic, downloads or data capture. Here are some ideas to bring your direct mail and digital channels together.

Trigger Direct Mail Based on Behavior or Lead Score

You can keep the cost of direct mail in check by only sending it when it makes an impact. Leverage digital marketing to capture customer behavioral data, such as interactions with your site, sales development reps, and email marketing then turn that data into triggers for direct mail.

A prospect engaged with your site downloads content and even shares a video. Your marketing automation platform scores them as an MQL now, and it’s time to reach out to them with a sales call. Before the call happens, your marketing automation platform sends them a piece of direct mail to prep them for a call.

Use Personalized Direct Mail

Take the customer data you have, combine it with firmographic and demographic data and use that to create personalized direct mail. Believe it or not, it is not expensive to print direct mail that has unique text, images or even entire design changes for each prospect in your pipeline. Personalized direct mail is more effective if you’ve used personalized digital messages you already know how well this tactic works to grab attention and drive action.

Using the example above, imagine the direct mail piece you send references the content the prospect has already engaged with along with their name and other info you captured from some gated content.

Real Time Phone Calls

Use a solution that automatically notifies you when your direct mail has landed on a prospect’s desk. Get a digital notification in your CRM so a sales rep can follow up in real time. This is a great example of direct mail sending response action data back to digital channels.

Sticking with this example, the sales rep on your team gets a notification as soon as the direct mail is delivered. A call happens within a few moments of delivery, the prospect can’t get much warmer than this.

## Conclusion

Direct mail is an excellent tool for capturing the attention of hard-to-reach prospects. When you are calculating the cost of a direct mail campaign, remember: