Last month I wrote a post about how to calculate breakeven for direct mail campaigns. A blog reader requested a formula that calculates the response rate needed to break even. To determine the breakeven response rate, you need to know what kind of average order (AOV) your campaign will generate. Let’s look at three different AOV examples and see how AOV impacts the breakeven response...
Calculating direct mail breakeven is critical because it’s a key metric when planning the circulation of a successful direct mail campaign. Start by using estimated costs to determine your initial campaign breakeven. Then create a preliminary circulation plan based on the projected revenue of each list segment. An increase in print quantity has the potential to lower your campaign breakeven. On the flip side, a...
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