One of the benefits of direct mail marketing is that the value is easily measured using your projected response rate (number of prospects who will act on your call to action) and ROI (return on investment). Typical response rates for a direct mail campaign range from about 1% to 5%. This rate varies by industry and the quality and relevance of the mailing list, as well as whether it’s a warm (have had previous interactions) or cold (no previous contact) list. By estimating your response rate, you can determine the size of the mailing needed to achieve your desired ROI or sales goals.

Let’s look at an example mailing campaign: At first glance, 100 responses out of 5,000 postcards hardly seem worthwhile. But, suppose those responses resulted in 25 sales worth $4,375. Look again—those 25 sales generated a profit of $1,125 and an ROI of 35% after subtracting the cost of the direct mail campaign.

What has your ROI in the stock market been lately?