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Direct Mail Marketing Return On Investment (ROI) Analysis

Describe your mailing using the fields below. An explanation appears to the right of each field. All fields are necessary to complete the calculations. Try different values in each field to find how costs and conversion affect your success. Feel free to use this ROI Calculator as often as you like.

Mailing
Number of mailing pieces:

Enter the total number of pieces being mailed.

Total mailing cost:

Enter the total costs of the mailing, excluding postage.

Total postage cost:

Enter total postage. To estimate postage, multiply .233 by the number of pieces.

Response
Product selling price:

Enter the price of the thing being marketed. For items with no fixed price, enter the average total sale per order. For solicitation mailings, enter the average donation per response.

Conversion rate:

Enter the rate of conversion from response to sale. Typically not all responses result in a sale so enter the percentage of sales here as a portion of responses. Retail sales typically have conversion rates between 1% to 8%. Ecommerce merchants normally have 0.5% to 1.5%. Direct sales can have much higher conversion rates of 50% or more.

Cost per sale:

Enter the amount of cost associated with each order. For example, if marketing item X, how much does item X cost you, the merchant? This number will be smaller than "Product selling price" above and in some cases may be zero.

 

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630 Pennsylvania, Wichita, KS 67214
info@mailcci.com - 316-265-0879  
© 2008 by Contemporary Communications, Inc.     Your Privacy     Terms of Use
630 Pennsylvania, Wichita, KS 67214
info@mailcci.com - 316-265-0879