ROI for Personalized Direct Mail

Personalized Direct Mail is nothing new.  What is new is how affordable personalization is becoming.

The technology that allows you to print personalized data on each direct mail piece is called Variable Data Printing. The cost for variable data printing has historically been an obstacle for those looking to personalize their direct marketing efforts.  However, the technology is both becoming cheaper and easier to use.  If you haven’t already, now is a perfect time to begin to experiment with personalization.

Just take a look the chart below from Banta Corp that shows the production cost and ROI for personalized direct mail.

Low-Level Targeting & Personalization High-Level Targeting & Personalization

Production cost: 25,000 pieces @ $.40 each = $10,000
2% Response rate = 500
Revenue model: 500 @ $100 average sale = $50,000
Production cost as % of revenue = 20%
R.O.I = 5.0x
Cost per response = $20

Production cost: 12,500 pieces @ $.80 each = $10,000
10% Response rate = 1,250
Revenue model: 1,250 @ $100 average sale = $125,000
Production cost as % of revenue = 8%
R.O.I = 12.5x
Cost per response = $8