The Joint Industry Currency for Mail (JICMAIL) has released its latest Response Rate Tracker results for 2024, highlighting the growing effectiveness of Cold Direct Mail (DM) and Door Drop campaigns in helping businesses prospect for new customers. The report, which aggregates anonymous campaign-level data from 3,800 campaigns across fifteen organisations, provides robust benchmarks for response rates, Return on Investment (ROI), Cost Per Acquisition (CPA), and Average Order Value (AOV). These insights are essential for marketers to set campaign targets and measure performance.
Key Benchmarks for 2024
- Warm Direct Mail achieves an average response rate of 7.2% and an ROI of £9.00.
- Cold Direct Mail generates a 0.9% response rate and an ROI of £3.20.
- Door Drops achieve a 0.5% response rate and an ROI of £2.90.
While Warm DM (targeting existing customers) delivers higher ROI, Cold DM and Door Drops are increasingly effective in expanding customer bases. In 2024, Cold DM response rates grew by 24% year-on-year, while Door Drop ROI increased by 39%.
The Power of Scale and Frequency
The report underscores the importance of campaign volume and frequency in driving ROI:
- For Cold DM, campaigns with a send volume of up to 25,000 items achieve an average ROI of £2.50, while campaigns with 100,000 items or more see ROI rise to £3.60.
- Repeat Cold DM campaigns outperform new campaigns, delivering 37% higher ROI, 2.5 times higher response rates, and improved CPAs and AOVs.
Dual-Objective Campaigns
Marketers aiming to boost response rates should consider campaigns with dual objectives—those that simultaneously drive sales and reinforce brand awareness. Such campaigns typically achieve three times the response rate of response-only campaigns.
Sector-Specific Insights
The Response Rate Tracker now provides benchmarks across 35 sectors, including retail, finance, charities, telecoms, travel, property, and medical. This granularity allows marketers to tailor strategies to specific industries.
Expanding Contributor Network
JICMAIL’s Response Rate Tracker benefits from contributions by fifteen organisations, including new participants Go Direct Marketing and PDV Agency. Other contributors include Ginger Black Analytics, Epsilon, DBS Data, Join The Dots, Sagacity, The Letterbox Consultancy Whistl, PaperPlanes, Conexance Choreograph, PSE, The Specialist Works, Go Inspire, and Herdify.
Accessing the Data
The data is available to JICMAIL subscribers through JICMAIL Discovery, a portal that provides access to mail campaign planning and measurement tools. With nearly 300 accredited organisations in its community, JICMAIL continues to be a vital resource for the industry.
Summary of Key Findings
- Cold DM and Door Drop campaigns are becoming more effective, with significant year-on-year growth in response rates and ROI.
- Campaign volume and repeat sends enhance ROI, emphasizing the value of scale and frequency.
- Dual-objective campaigns (brand and response) significantly outperform single-objective campaigns.
- Benchmarks across 35 sectors enable tailored, data-driven marketing strategies.
The 2024 Response Rate Tracker reaffirms the mail channel’s role as a powerful tool for customer acquisition and brand engagement, offering actionable insights for marketers looking to optimize their campaigns.
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