Unlocking Direct Mail Attribution: Maximizing ROI & Campaign Impact
Understanding which marketing channels deliver direct mail attribution and exceptional ROI is critical for strategically engineering an optimal marketing ecosystem.
While digital channels can offer instant analytics, direct mail’s impact has traditionally been harder to quantify. But when you can pinpoint which direct mail pieces are directly and indirectly contributing to consumer actions, conversions and sales, you’ll be able to best understand the true value of your direct mail investments.
That’s the power of direct mail attribution. And it can help marketers understand direct mail’s important role along the buyer journey.
The evolution of direct mail tracking
From its origins as a volume-based, saturation approach, direct mail has transformed into a data-driven marketing strategy with highly measurable results and actionable insights.
In the early days of direct mail marketing, tracking was minimal and largely manual. Marketers relied on basic methods such as unique phone numbers for each campaign, custom response forms or coupons, or simple A/B testing with varied design elements or offers to try to win over more customers.
In contrast, today’s attribution approaches involve even more sophisticated systems to incorporate both online and offline behaviors to create a holistic view of the customer journey. These innovations allow brands to track when recipients move from physical mail to digital engagement as they move closer to the sale.
>>Related: Best Practices for How to Get a Direct Mail List<<
Modern marketers employ several tactics to track direct mail effectiveness and gain more accurate attribution metrics:
- Holdout groups to measure incremental lift
- Custom or personalized URLs (PURLs) and landing pages
- QR codes linking to online destinations or storefronts
- Personalized promo codes for online purchases
- Match-back analysis, comparing customer databases with mailing lists to identify conversions
Connecting the dots on direct mail
Think of direct mail attribution as the compass guiding marketing insights. Without proper attribution, it’s hard to know where conversions are coming from. And as measurement technologies continue to advance, those who master attribution will gain a competitive advantage in both understanding and maximizing the full impact of their direct mail investments.
- Improved ROI calculation. Attribution reveals the actual value generated by direct mail campaigns.
- Informed budget allocation. When you know which direct mail efforts deliver the best results, you can allocate marketing dollars more effectively.
- Customer journey insights. Attribution reveals how direct mail influences other channels and where it fits in on the path to a purchase.
- Campaign optimization. Detailed attribution data helps identify your most effective creative approaches, offers and audience segments.
- Performance justification. Concrete attribution data helps justify direct mail investments and inform future decisions.
- Integration with other channels. Understanding direct mail’s influence helps marketers create cohesive omnichannel strategies, so that digital follow-ups can best align with physical mail delivery.
Plus, there’s the incremental return on ad spend (ROAS) advantage. Direct mail allows for highly accurate attribution rates, especially when combined with holdout groups that measure incremental ROAS.
>>Related: How ME+EM Boosted ROAS with Targeted Direct Mail<<
For example, a new product launch generates some organic online sales. Adding in a direct mail piece allows for determining the incremental ROAS achieved solely by the direct mail. This approach reveals the true incremental ROAS — the additional return generated from the direct mail investment that wouldn’t have occurred otherwise. So if the control group shows a 2% conversion rate while the test group achieves a 5% conversion rate, marketers can confidently attribute the 3% lift directly to the postal mailing.
Best practices for streamlined direct mail measurement
Implementing effective attribution requires thoughtful planning and consistent execution. Some recommended strategies include:
- Set up proper tracking infrastructure. Integration of direct mail with CRM and other marketing platforms and use of pixel tracking on landing pages associated with the campaign is critical. Marketers should also ensure use of an e-commerce system that’s able capture and attribute promo codes accurately. Tracking UTMs are also another option if you want to track by source, medium, and/or content.
- Implement match-back analysis. Regularly comparing mailing lists against purchase records makes it possible to identify mail recipients who converted through untracked channels. Create automated match-back reports that run on specific days post-campaign to see where sales are coming from.
- Establish clear attribution windows. Define specific timeframes for crediting direct mail with conversions. Create different attribution periods for different product categories based on typical sales cycles.
- Continuously test and monitor. Is it the headline that’s compelling action? The offer itself? The timing of delivery? Attribution helps answer these critical questions. Allocate a set percentage of each campaign to test new approaches for measurement. And be sure to document insights to inform future strategies.
Avoiding common pitfalls. There’s a lot riding on attribution data. Even the savviest marketers can fall victim to measurement errors that undervalue direct mail’s contribution.
Attribution windows that are too long. Attribution windows for direct mail marketing that are too long can lead to misleading data, overestimated campaign performance, and difficulty isolating direct mail’s impact. For programmatic direct mail, the standard attribution window is 30-90 days, with best-in-class reporting at the 30-day mark. Longer reporting windows make it difficult to assess campaign effectiveness quickly, slowing adjustments and future improvements.
Poor tracking. Inconsistent code usage or improper setup can lead to inaccurate data and understated results. For example, if promo codes aren’t properly capturing back-end systems, or landing pages aren’t tracking pixels, you’ll never get an accurate calculation. Be sure to QA test all tracking URLs and QR codes on actual printed pieces, as well as all tracking pixels. Regular audits can help ensure all processes are running smoothly.
Lack of holdout groups. Failing to establish proper test-and-control methodologies can lead to attribution that doesn’t distinguish between correlation and causation. So, build a testing system into your campaign planning process. Allocate a set percentage of each campaign audience as a control group. Ensure the group is randomly selected to prevent selection bias and maintain identical conditions for test and control groups.
Siloed data. Results are only as good as the quality of the data being gathered. When direct mail results exist in a separate system from digital, email and other channels, accurate multi-touch attribution becomes impossible. Create a unified measurement framework and standardized reporting that shows direct mail alongside other channels.
Ignoring long-term impact. Direct mail creates brand impressions that extend far beyond immediate response metrics. But focusing exclusively on short-term conversion rates misses the cumulative brand building that quality mail pieces deliver. By implementing broader measurement approaches, you can calculate the retention and loyalty impact of ongoing mail programs and even measure secondary behaviors like branded search increases following mail drops.
Not considering household influence. Think about how many household members may skim through a catalog or scan a postcard. Direct mail often influences multiple household members. And the person who receives and opens the mail may not be the same person who ultimately makes the purchase. The solution? Use household identifiers rather than individual identifiers when appropriate and create attribution models that acknowledge household-level decision making.
Ready to transform your direct mail attribution?
At LS Direct, our clients benefit from automatic 30-day attribution reporting, making it easy to understand your direct mail performance immediately. Gain valuable attribution metrics through:
- Tracking conversions across all channels influenced by your direct mail campaigns
- Providing detailed breakdowns by segment, offer, creative approach and more
- Calculating true ROI incorporating both direct and influenced conversions
- Adjusting for external factors like seasonal variations