According to a 2007 survey, 50% of Canadian businesses stated that they had used some method of direct marketing in the previous year.1 The reason is simple: Direct Mail is an ideal way to:

1. Target specific households and/or individuals
2. With a specific message
3. And obtain results that you can measure easily

A significant majority (63%)2 of Canadians are more likely to respond to something they receive in the mail than by any other means. Questions to ask before you start an Admail campaign . To find out if Direct Mail is right for your business, consider these three questions:

1 Business Attitudes Toward Direct Mail, February 2008 (CPC #07-25).
2 Value of Mail Omnibus, September 2007.


1. Do you know where your target market lives?

Seasoned direct marketers will tell you that good targeting can drive as much as 60% of the success of your marketing effort. For example, it stands to reason that soon-to-be parents would welcome baby product information and new homeowners special offers related to home services, furniture, and decorative accessories.

If you feel that you can define your target market, Direct Mail may work for you!


2. Do you have time to prepare an Admail campaign?

While some people may have the perception that a Direct Mail campaign can be prepared in just a few days, the reality is that it normally takes several weeks to build one that will deliver optimal results. As a guideline only:

Addressed Admail —Allow 3-4 weeks

Depending on the services used we can look at expediting your admail campaign through production to meet a faster deadline.

3. Can you generate an acceptable return?

It makes sense to estimate whether the potential profit from an Admail campaign is worth the investment. The easiest way to answer this question is to calculate the break-even point.

For example, let's assume you have a $2,000 budget and want to mail a promotional postcard to households in your neighbourhood. You've estimated that it will cost 80¢ per piece for printing and postage.

• That means you can reach 2,500 households ($2,000 / 80¢ = 2,500).
• You also know that, given your current profit margins, you can afford to spend $50 to get an order. To break even (i.e., cover the costs of your advertising), you would need 40 orders from the 2,500 households you mail to ($2,000 / $50 = 40)
  
• This means you would need a response rate of 1.6% of the total mailed (40 / 2,500 = 1.6%).
  
• Once you have identified your advertising break-even point, you need to evaluate whether the required response rate is realistic. An easy way to do this is to divide the number of expected orders over the selling period. Using the example below:
  
  • Breakeven: 100 orders
    
  • Promotion Period: 20 days
    
  • Orders per Day: 5 (100 / 20 = 5)

Is it realistic that you could generate an average of five orders a day? If it is, great! If not, then you should rethink your cost per order and/or consider another factor that drives Admail campaigns, Customer Lifetime Value. Your average customer may purchase from you more than once and be a repeat customer of the following years or months.

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