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Neighbors
Delivers ROI
Neighbors
Delivers ROI
In a digital age saturated with online ads, direct mail advertising is experiencing a remarkable resurgence. Businesses are rediscovering the unparalleled power of tangible, direct messages that cut through the digital noise and reach consumers directly. Studies have shown that direct mail campaigns boast higher response rates and better customer engagement than many digital channels.
At RO High, we harness the proven effectiveness of direct mail, exclusively for each business category at a remarkable savings of over 90% versus going at it alone.
Track & Measure
Neighbors Success
For most industries you will see an obvious increase in sales and know your Neighbors Direct Mail Campaign is very successful. For those who have the resources and time, we suggest tracking your direct mail performance to determine your ROI. Here are some common and effective methods to track your ROI include:
QR Codes
Add an easy-to-use QR code to your ad. By scanning the code, customers will go to a dedicated landing page on your website. You can track/measure this activity through your website analytics or through the QR code companies themselves.
Trackable URL
Create a URL specific for your Neighbors Direct Mail Campaign and include it in your ad. You can then track how many people visit your site through this unique URL in your website’s analytics.
Coupon Codes
You can offer campaign-specific coupon codes or special offers in your Neighbors ad. This can be a good way to track your response rate.
Trackable Phone Number
You can create a phone number that’s used exclusively for your Neighbors Campaign, that will forward to your business line. You can then track how many people call using that number.
Key Performance Indicators (KPIs) to determine the success of your Neighbors Direct Mail Campaign
Here’s how the Neighbors Direct Mail Campaign stands out compared to a Solo direct mail campaign. Using an example where Neighbors has a minimum distribution of 12,500, with a 1% response rate (125 responses) and an average order size of $50, we’ll show how Neighbors, at just $425, delivers superior results over a solo campaign, which costs on average $7,000.
Cost Per Acquisition (CPA) Shows the cost to obtain a new customer.
Solo Direct Mail Campaign: $7,000 / 125 = $56.00 CPA
Neighbors Direct Mail Campaign: $425 / 125 = $3.40 CPA
Revenue Per Order Shows you how much revenue you made from each order on average.
Solo Direct Mail Campaign: $50 – $56.00 = -$6.00 Revenue Per Order
Neighbors Direct Mail Campaign: $50 – $3.40 = $46.60 Revenue Per Order
Return on Investment (ROI) Most valuable metric to show the profit or loss of the campaign.
Solo Direct Mail Campaign: ($6,250 – $7000) / $7,000 = -10.71%
Neighbors Direct Mail Campaign: $6,250 – $425 / $425 = 1,370.59%
Life Time Value (LTV)
Customer lifetime value is a metric that estimates the total revenue a business can reasonably expect from an average customer throughout their relationship with the company. While this long-term metric is important, some companies overestimate its value, especially when their campaigns have a very low or negative immediate ROI. The calculation of customer lifetime value varies between businesses and can be confusing, as many factors, like customer service and product quality, aren’t accounted for, making it more of a hopeful prediction. We believe that achieving a very high immediate ROI is crucial, especially in today’s business environment. Our goal is to help you acquire the most new customers at the lowest cost, allowing you to invest more in customer retention through loyalty or reward programs, which will significantly increase your lifetime value.
90% of Direct Mail gets Opened
Compared to Only 20-30% of Emails
Holding a piece of mail makes a lasting impression. Neuroscience research suggests that physical action can influence consumer decision-making. The research shows that physically holding a print advertisement significantly influences consumer decision making and purchasing behaviors. Studies have shown that direct mail boasts a significantly higher open rate compared to digital marketing channels.
Consistency is Critical for a successful direct mail campaign.
The Rule of 7 is a time tested fundamental marketing strategy that was developed by marketing psychology expert Jeffrey Lant. A successful marketing message that leaves a lasting impact on your target audience, needs exposure to it a minimum of 7x within an 18-month period.
Sending solo direct mail to a large volume every 30 days can be prohibitively expensive and result in a low ROI.
Neighbors is a unique solution to affordably send direct mail consistently, without advertising next to your competitors, delivering exceptional ROI.
Rule of 7
People need to see a message at least 7x within 18 months to take notice & make a purchase
9 out of 10
Consumers engage with promotional mail
88%
of millennials regularly read their mail & 40% regularly purchase items featured in mail ads
70%
of consumers prefer traditional mail for cold unsolicited offers
A Combined Effect
Direct Mail & Digital Advertising
According to the study completed by the USPS, they found that 59% of marketing respondents attribute their issue with incorporating direct mail with their digital marketing was production costs.
The Solution? Neighbors.
While direct mail offers distinct benefits compared to digital, we are not suggesting you abandon or exclude digital from your marketing strategy. Instead, we want to highlight that incorporating direct mail into your digital campaigns has proven to boost ROI.
If you are currently running a digital campaign, Neighbors provides an affordable way to integrate direct mail and achieve the proven increase in ROI that this combination delivers.