To keep your marketing program on track, it’s necessary to measure how it’s performing in specified relevant areas. These marketing metrics are known as key performance indicators (KPIs) or direct marketing indicators. They can tell you at a glance whether or not your marketing efforts are paying off, if you are achieving sales goals, or are finding and converting enough leads to meet revenue projections. Here are some ways you can use and understand direct marketing indicators to assess the most important areas of your marketing program.
What Direct Marketing Indicators Cover
KPIs and direct marketing indicators can vary significantly depending on what results you’re trying to assess. For a direct marketing campaign, some important indicators could be:
- Number of mailings sent
- Mailing lists used
- Cost per mailing
- Response rate
- Conversion rate
- Average sale per mailing
- Average cost per sale
These are important performance indicators that tell you how much it costs to acquire new customers and how much these new customers are spending. This data can tell you if your direct mail program is working and give you insights into whether you should refine it, continue using it as is, or discard it altogether.
Devising Direct Marketing Indicators
When devising and defining the direct marketing indicators you’ll use for your particular situation, keep the following factors in mind:
- Indicators should support and reflect your goals and objectives, both company-wide and for the particular project or program.
- Indicators should tie directly into your marketing plans and sales objectives.
- Data to be measured should be clearly described and defined.
- Sources of data should be identified and pursued. Data can come from business operations, marketing departments, sales teams, or other relevant sources.
- Plan how indicators will be measured and reported. Clearly define the process and the tools, software programs, expert sources, or other resources you’ll need.
- Implement the assessment program. Once you have usable data in hand, revise or redefine your indicators as necessary to ensure receiving the best and most actionable data possible.
Do you know and understand the direct marketing indicators that drive your business and affect your profits?
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