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Why Direct Marketing Performance Measurement is Important?

Updated: Jan 19, 2023

We know you shed your blood and sweat into sending all those SMSs and push, writing profound emails for email marketing, and whatnot. But is it giving you the desired results?

Peter Drucker once said - “If you can’t measure it, you can’t improve it.”

So, sorry but we are not sorry to say that all your hard-done efforts in EPS planning (emails, push notifications, and SMS) and execution is just going in vain.

But don’t worry masters, we are on your escape.

We are going to give you the exact reasons why you should measure the performance of your marketing emails, push notifications, and SMSs, what KPIs should you set for this measurement, and how you can analyze your results better.

Tear into your moment to improve…

Why should your direct marketing performance be measured?

Analyzing the performance of your direct marketing is important because it allows you to:

1. Measure the effectiveness of your campaign

You can determine whether your campaign is achieving its desired results and if not, make adjustments to improve it.

2. Identify your target audience

You can identify which demographic groups are most responsive to your campaign and tailor your marketing efforts to reach them more effectively.

3. Optimize your budget

You can determine which channels and strategies are most cost-effective and allocate your budget accordingly. (For example, if the emails are leading you to more engagement, you may want to allocate more of your budget to email marketing).

4. Improve ROI

You can identify areas where you can make improvements to increase your return on investment.

5. Make data-driven decisions

You can make informed decisions based on data and evidence, rather than assumptions or gut feelings.

Measuring performance through KPIs

KPIs, or Key Performance Indicators, are measurable metrics used to evaluate the performance and progress of a business or organization toward its goals and objectives. They are specific, quantifiable targets that are used to track and measure performance over time.

Examples of KPIs in general may include revenue growth, customer satisfaction, employee turnover, and website traffic. These metrics help organizations identify areas of success and areas that need improvement in order to achieve their goals and objectives.

What KPIs should you use?

In terms of direct marketing campaigns, it is very important to keep a clear end goal. What is it that you are trying to achieve as a business? Why are you doing marketing in the first place? Do you want to simply increase your sales? Or do you want to increase customer retention more than new customer acquisitions? Ask yourself such questions and then start forming your KPIs keeping the answers in your mind.

Some KPIs that you may utilize are:

1. Response Rate

This is the number of people who respond to the campaign divided by the number of people who received it.

2. Conversion Rate

This is the number of people who take a desired action (such as making a purchase or signing up for a service) divided by the number of people who responded to the campaign.

3. Return on Investment (ROI)

This is the amount of profit or revenue generated by the campaign divided by the cost of the campaign.

4. Lifetime Value

It is the predicted net profit attributed to the entire future relationship with a customer.

5. Net Sales

The total amount of revenue generated by the campaign after subtracting the costs of the campaign.

6. Net Profit

The total amount of profit generated by the campaign after subtracting all costs, including the cost of goods sold.

7. Average order value

The average value of an order placed as a result of a direct marketing campaign is used to measure the effectiveness of a campaign in driving high-value sales.

8. Cost per acquisition

The cost of acquiring a new customer through the campaign is used to measure the cost-effectiveness of different marketing strategies.

9. Click-through rate (CTR)

The percentage of recipients who click on a link or button in your marketing message is used to measure the effectiveness of email and online marketing campaigns.

10. Bounce rate

The percentage of recipients who receive your marketing message but do not open or engage with it is used to measure the effectiveness of email and online marketing campaigns.

11. Subscriber retention

The percentage of recipients who continue to engage with the campaign over time is used to measure the effectiveness of the campaign in building long-term relationships with customers.

12. Net promoter score (NPS)

A measure of customer loyalty and satisfaction is used to gauge the effectiveness of the direct marketing campaign in building positive relationships with customers.

How often should you do a performance check?

It is recommended to analyze the performance of your direct marketing campaigns on a regular basis, AT LEAST ONCE A MONTH. Seriously, that’s the minimum.

This will allow you to identify any issues or areas for improvement and make necessary adjustments to optimize your EPS campaigns for better results. Additionally, analyzing the performance on a regular basis will also enable you to track the progress of your campaigns and make data-driven decisions.

Utilize a standard analysis template

A standard analysis template helps in analyzing results by providing a structured approach for organizing and interpreting data.

If you are new to developing such a template, you can include the following sections in your template for analyzing the performance of your direct marketing campaign that pretty much covers everything you would want to track.

Keep note that this is just a recommendation of a typical analysis template as it varies from business to business.

1. Data collection

The template guides the user on what data to collect, how to collect it, and how to record it.

2. Data cleaning

The template provides instructions for cleaning the data and ensuring its integrity.

3. Data analysis

The template outlines the steps for analyzing the data and includes instructions for statistical analysis, visualization, and other data analysis methods.

4. Results interpretation

The template provides a framework for interpreting the results and drawing conclusions. It also includes a section for discussing the limitations and implications of the study.

Overall, the standard analysis template ensures that the analysis is thorough and consistent, allowing for accurate and reliable results.

What should be the standard template for presenting results?

To present the results of the performance analysis of your direct marketing campaign, you may roughly involve the following sections:

  • Introduction: This section provides an overview of the analysis, including the purpose, objectives, and scope of the study.

  • Methodology: This section describes the methods and techniques used to collect and analyze data, including the research design, data sources, and statistical techniques.

  • Results: This section presents the findings of the analysis, including tables, charts, and graphs to visualize the data.

  • Discussion: This section interprets the results and provides context for the findings, highlighting any key insights or trends.

  • Conclusion: This section summarizes the main findings and recommendations and concludes the analysis.

  • References: This section includes a list of all the sources cited in the analysis.

  • Appendices: This section includes any additional information or materials that support the analysis, such as raw data or detailed calculations.

Note that the structure and format of a standard analysis template may vary depending on the specific context and purpose of the analysis. But generally, it is a guide to help you organize and present your data and findings in a clear and consistent manner.


KPIs and other performance measurement metrics are like the lifeblood of your marketing campaigns as they promote clarity, improvement, direction, and whatnot. Doing efforts in your EPS strategy without setting clear KPIs and goals is like beating in the bush.

We strongly recommend you take note of the above-mentioned suggestions and strategies in a note while doing your EPS planning the next time.

Also, these practices are sensitive and are subject to expertise, so if you are not hundred percent confident about whether you will be able to take these in action, you must take the help of experts. A good d2c solutions driven company could help you your way through EPS planning, numbers, and analysis.

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