Marketing if I send out 1000 direct Mail postcards how can I work out an estimated response rate?

Question

I am sending out direct mail around 1000 to addressed companies, I was wondering how can I work out the estimated return on this for example if I spend X amount on the whole campaign what response can I estimate? Hope someone can help me with this.

thanks for answers so far Just thought I would add that the list has been brought of a legitimate broker within the industry and the addresses are of people who have opted for information to be sent in the post, the marketing will be targeted and not just random so the people who get the information will most likely get something
From it. We are put an offer of some sort on the postcard.

Answer 1

While initial response percentages are nice to look at. The real important number to look at is what does each response represent to you in potential lifetime value...what is THAT actual dollar amount? and how does that numbe rcompare to the cost of that mailing.

Your mailer will provide the first step in the business relationship...you must have a system in place to close the deal...and retain a lifetime customer.

That is the real ROI value that direct mail should be measured.

Answer 2

Response for direct mail is low and although my memory is strained on this, 8-10% is considered a good return unless you are going to existing customers for a specific event and the card can be turned in for a discount or other reward.
If you are doing the mailing to non-customers, you must comply with do-not-call, do-not-mail lists and that can get complicated.
The direct marketing industry should have statistics on returns from cold and various warm mailings. Try here
http://www.the-dma.org/index.php

Answer 3

The response rate is largely dependent on the relevance of the product to the company. However, a typical response rate for a mail out is around 1.0% to 5.0%. An average would be 2.5%, but again, largely dependent on the product.

EDIT: Sorry, I missed the decimal point in my numbers. Sorry for the mixup!

Answer 4

Based on my experience with direct mail. A good response would be 1-2%.

Answer 5

My experience is .5% to 2% but typically on the lower end of that. I think the guy saying a response rate of 50% is a bit confused. There is just now way!

Answer 6

1-2% for me is a nice return

Answer 7

Companies, well I don't know, but if I was the one sorting
mail, I would put it in the trash.