As with any marketing campaign across any medium, you’ll have a set of goals and targets in mind. This is no different when it comes to B2B direct mail campaigns either. Here you’ll find everything you need when it comes to setting goals and KPIs and calculating your ROI.
What are KPIs?
KPI stands for ‘key performance indicator’. This will be a goal that is set, usually in a numerical format, which can be easily measured for success. A KPI doesn’t only have to be an end-result, and could also be something that is measured half-way through a campaign. It’s also not generally an end-goal, but a minimum target to aim at.
For example, response rate or revenue is one example of a KPI. You’ll have a minimum that you want to hit, but obviously the greater these figures the better! Other examples of KPIs include cost per order, lifetime value, or pipeline value.
How to calculate ROI
ROI, which stands for ‘return on investment’, is perhaps the ultimate way to measure the success of a campaign. Quite simply, it is how great is the B2B direct mail campaign’s return on the amount that you invested?
To calculate this, you’ll want to follow these steps. First, it’s a good idea to have some way of tracking the responses in your campaign. Using something like a PURL (personalised URL) is one example.
Next, you’ll want to look at two important pieces of information. This is the cost per response (CPR) and the cost per sale (CPS). The first figure relates to the number of people who responded to your campaign in some way; perhaps a phone call or email. To calculate this, divide the total cost of the B2B direct mail campaign by the number of people that responded. So, for a campaign costing £1,000 which 100 respondents, the CPR is £10.
That’s one way to measure ROI. But if you’re aiming for revenue returns, which many campaigns are, then the CPS is the more important figure. To work this out, you simply take a similar formula to the above, and divide the total cost of the campaign by the number of sales. So if your campaign cost £1,000, and you had five sales, then the CPS is £200.
Why is it useful to set these goals?
Using these figures, you can also work out a lot more about your campaign. In the above example, a lot of people are responding, but not a lot of people are converting. Calculating the ROI and measuring KPIs is a great way to track results, see what the success of your campaign was, and help plan for future campaigns. This will give you a great set of ideas, tips and strategies for the next set of marketing campaigns.
Contact bakergoodchild to discuss B2B direct mail campaigns
Want to find out more about B2B direct marketing, how a mailing house can help, or for examples of past successful campaigns? Be sure to check out our extensive B2B direct marketing and mail article here. Or, for any other queries, contact us here.