ROI Calculation Description

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ROI Calculation Description

 

  1. Quantity Mailed
  • This is how many you are looking to mail.
  • In this example, we used 10,000
  1. Campaign Cost
  • This should include all expenses: design, printing, list, postage, etc.
  • In this example, we used $5,000
  1. Anticipated Response Rate
  • Response for direct mail is constantly changing depending on the offer, economy, timing, etc. This is something that we have absolutely zero control over.
  • In this example, we used 5%
  1. Anticipated Close Rate
  • What is your average close rate when people call in from your direct mail campaigns?
  • In this example, we used 10%
  1. Average Profit Per Sale
  • How much profit does an average client bring to you?
  • In this example, we used $5,000

 

 

  • Number of Responders: 50This number is calculated by taking the total quantity mailed * response rate %
  • Cost Per Responder: $100This number is calculated by taking the total campaign cost / number of responders
  • Number of Conversions: 5This number is calculated by taking the total number of responders * Close Rate
  • Cost Per Conversion: $1,000. – This number is calculated by taking the total campaign cost / number of conversions.
  • Total Campaign Revenue: $25,000This number is calculated by taking the average profit per sale * number of conversions.
  • Cost Per Piece: $0.50 – This number is calculated by taking the campaign cost / quantity mailed
  • Total Campaign Profit: $20,000This number is calculated by taking the (average profit per sale * number of conversions) – campaign cost.
  • Campaign ROI: 300%(Campaign Profit – Campaign Cost) / Campaign Cost

 

 

 

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We are the premier source for direct mail printing and mailing services. We help organizations with the acquisition, development, and retention of a profitable client base. Influence Direct understands the need to reach your target market at just the right time. We direct your efforts to increase and maintain market share profitability.

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