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.
Enter the number of consumers or businesses you intend to reach.
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.
Try to determine as accurate as possible your average sale amount.
Enter the amount of average cost per single sale.
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.
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….
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.
How many “buyers” you need for the campaign to “break even".
People that will respond to your campaign based on the rate you entered
Projected number of actual buyers
How much is the actual cost to gain a buyer
The total cash projected cash flow from the campaign
The gross profit per single sale
Total gross profit
The profit generated after subtracting the initial investment
The actual return on investment in percentage