« Baa | Chocolate Direct Mail »
While it may seem obvious to measure the success of a direct marketing campaign, I'm continually surprised when organisations don't pay attention to campaign return-on-investment (ROI). I'm not sure why people choose to ignore ROI, it's a very straightforward calculation: ROI=Profit/Costs. It's really that simple.
But if maths really isn't your forté, then I've provided links to a selection of online ROI calculators to get you started.
» American Marketing Association ROI Calculator
» Lee Mark Stein Direct Mail ROI Calculator
» Marigold Technologies Direct Mail ROI Calculator
I should note that while measuring ROI is important, it's not necessarily the only measure you should use. There are a selection of other soft and hard measures for evaluating campaign effectiveness, which include brand awareness, promotional recall, life-time value (LTV), market penetration and others.
The reality is that not all campaigns are successful—ROI is also an acronym for 'Return is Only Implied'... However, ROI data from unsuccessful campaigns is equally valuable as data from successful ones, as this data can help you to identify why the campaign was unsuccessful, and you can build on this knowledge to turn around response rates in follow-up campaigns.
Posted on Monday, 3 March 2008 at 6:34 PM | TrackBack: http://www.veedeepee.com/cgi-bin/mt-tb.cgi/95