Sean Griffin is the President and Owner of Cornerstone Services Inc. a mail house located in New Paltz, NY. Tel: (845) 255-5722 ex. 100 EMail: email@example.com
In a prior post, we looked at practical pros/cons of the USPS’ Every Door Direct Mail product (EDDM) as gleaned from our own experience. Unlike most of the generic fodder that you will find on the web, we drawn upon actual feedback from presentment review and real customer interviews vs. typing up wishful blanket statements with from macro-level, powdered sugar pleasantries in hopes that you will call.
For at least 50% of you, it would be worthy to consider a direct mail option in addition to an EDDM option for bulk mail. Often, we give estimates to clients for both methods. The right approach can be best ascertained from your calling us. So, my name is Sean and my direct number is (845) 255-5722 ex. 100 if you’re unsure as to which way to go. I’m in sales so of course I want you to call.
If you are fairly certain on using EDDM, then it would be street smart for you to perform a mini-ROI to see if you get the return on your (said) investment. Note: other printer/mailers may call your mailing an investment but we call this what it is — an expense. Therefore, we very much want you to get your money back on this expense, so please run the numbers with your eyes wide open.
RUNNING THE NUMBERS: EDDM ROI VS. DIRECT MAIL ROI
To determine whether Every Door Direct Mail makes sense for your small business, let’s say, visit the program’s website (https://www.usps.com/eddm will redirect you) to calculate the ZIP Code address counts and respective total postage. If you use our services for printing, design or distribution, then add that in too.
EDDM ROI: for example: if we printed for you a 4.25” x 11” full color EDDM card, and you did the mailing, you might spend approximately 33 cents each (graphic design, printing, postage & shipping but no mailing service charges) to send this card to 5,000 recipients in your local area, for a total cost of $1,650.
DIRECT MAIL ROI: for comparison, a conventional direct-mail campaign might cost you about 58 cents per 5.5” x 8.5” card (printing, graphic design, full mailing service charges and postage) to send the same mailer to each of 2,500 targeted addresses, again for a total estimated projected cost of $1,450.
Although you out-of-pocket costs are in favor of the EDDM scenario, you might get expect greater response from your targeted recipients. If not, the more cost-effective mailing method will depend on the number of targeted recipients in the area to which you will be mailing.
To deem any EDDM or direct mailing scenario a success, we expect a business to break even, or come close to breaking even, in 90 days with the mailing effort. If you break even in 90 days, your campaign is an absolute success in our book with the boon of a potential returning customer base and brand/business awareness.
Therefore, for the EDDM scenario to work optimally, you need to bring in $1,650 in sales within 90 days (on 5,000 pieces). For a targeted direct mailing (which EDDM is NOT), the billable revenue must be at least $1,400 for the 2,500 cards you sent.
If you are a hair salon, let’s say, and your average sale is $35.00, you need just under 50 people to walk in the door via the EDDM approach. This is a reasonable goal to reach assuming that the average direct mail response rate is 1 – 3% nationally. 50 customers successfully reaches the 1% lower end.
If you are offering a homeowner service such plumbing or HVAC work, a direct mailing to homeowners only probably makes more sense. The 2,500 count is lower, but you would only need two or three sales (let’s say $500 each) to make this worthwhile.
BOTTOM LINE: DO THE MATH
The real value here is just to put pencil to paper and see what makes financial sense. For lower end price-point services, EDDM can be very accessible and can do very well. For higher end or niche products and services, try direct mail.