DIRECT MAIL ROI CALCULATOR

The calculator is simple and very easy to use. It is dynamic and intuitive you will see the results as soon as you enter or change the variable numbers. One of the key benefits of direct mail is that is easy measurable, and our calculator makes it even easier to determine your projected sales, profit and return on investment (ROI). You can use the calculator for any direct marketing campaign: direct mail, email marketing, social media, etc.

Inputs

Campaign Size

Enter the number of consumers or businesses you intend to reach.

Campaign Cost

Enter the total amount the campaign will cost you. Include: concept, design, print, list acquisition or updating (if house list used), mailing services, deployment, postage.

Average Amount per Sale

Try to determine as accurate as possible your average sale amount.

Average Cost per Sale

Enter the amount of average cost per single sale.

Response Rate in (%)

The typical response rate (RR) for direct mail campaign using a non-targeted list or EDDM® is anywhere between 0.25-0.75%. If you are using targeted prospect list, the response rate can go up to 2%. If you mail to your house list properly planned and executed campaign could yield even 5% RR. For more details about response rates, please check our post with the latest results from the DMA (Direct Marketing Association) 2015 Report for Direct Marketing Response Rates.

Conversion Rate (%)

Enter percent of the total respondents you think will convert into actual buyers.  If you have a tempting offer and exceptional sales team you can even aim at number close to 100….

Average Number of Repeat Orders

This is strictly number based on your experience or industry. Earlier you entered the average amount per single sale. If your business typically has repeat orders, please enter the average number of repeat orders you are expecting from a buyer without additional marketing efforts toward that particular purchaser.

Results and Analysis 

Break Even Number of Buyers

How many “buyers” you need for the campaign to “break even".

Number of respondents

People that will respond to your campaign based on the rate you entered

Respondents Converted to Buyers

Projected number of actual buyers

Cost per Acquired Buyer

How much is the actual cost to gain a buyer

Total Revenue

The total cash projected cash flow from the campaign

Estimated Profit per Sale

The gross profit per single sale

Campaign Profit (Sale)

Total gross profit

Campaign Net Profit

The profit generated after subtracting the initial investment

Campaign ROI

The actual return on investment in percentage

Our dynamic calculator and sliders make it easy and quick to create different scenarios and find out what you need to break even and start profiting from your direct marketing campaign. If needed increase the size of the campaign to achieve your desired return on investment (ROI).