Proper Direct Mail Response Rate Rate Calculation

[Terry Evans]

Hello All,

Was hoping the team can lend a little insight on how to "properly" calculate the response rate for a direct mail campaign. It seems as though most folks on BP calculate a percentage based on the total number of mailers sent. So 10,002 letters with a 2% response rate would be 200. But wouldn't a better reflection of the response rate be based on the total number of individuals mailed? 

Such as:

Total individuals mailed: 1,667

Total Mailings: 10,002  or 1667 x 6 mailings

2% Response Rate of Total Individuals Mailed: 33

I could be over thinking this, but if we go with the first example, that means 200 out of my 1,667 mailed leads called me back. For every 5 letter out the door, one will call me back. I like to consider myself an optimist, but that seems like a high ratio.  Is this the case? Or should I expect a total of 33 responses for my list of 1,667 direct mail candidates mailed 6 times?

Thank you kindly for sharing your insight and experience. 

[Adrien C.]

I'm not sure how the 2% is calculated. I track per mailing. So in my first mailing, I mailed 865 absentee owners. Overall I had 55 returned mails so my numbers are based on the 811 houses that got something. I had 52 calls in the first mailing for a 6.4% response rate. In the second mailing, I had 26 calls for a 3% response rate. I'm up to 9 calls on my third mailing which went out a week ago for 1.2%. With each mailing, I calculate the ratio based on mail sent vs calls. When they call, they come off the next months mailing so I figure that reduction into my calculation. Over the 3 campaigns, I have a combined 92 calls which is 11.3%. I have 3 closed properties with a handful in the pipeline so likely 1-2 more. This 3rd mailing I'm getting more calls of the take me off your list variety. 

I have similar stats with my vacant list and my driving list.