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What Does Response Rate Really Mean? Breaking Down the ROI of Direct Mail

DIRECT MAIL RESPONSE RATES

When people hear “2.7% to 4.4% response rate” for direct mail, they often shrug—thinking that sounds low.

But here’s the truth:
Those numbers are incredibly high compared to digital marketing benchmarks—and they often lead to massive ROI.

Let’s break it down with real-world math so you can understand how even a “small” percentage can drive big results.

Direct Mail Response Rates at a Glance

According to the Data & Marketing Association (DMA), the average response rates for direct mail are:

  • 2.7% for prospect lists (new audiences)

  • 4.4% for house lists (existing customers)

Compare that to:

  • Email: ~0.1% response rate

  • Paid search: ~0.6%

  • Social media ads: ~0.4%

These figures make it clear—direct mail punches way above its weight.

Let’s Do the Math: What Does 2.7% Actually Mean?

Say you send 5,000 postcards to local households using Every Door Direct Mail® (EDDM).

If you hit the average 2.7% response rate:

  • That’s 135 responses—calls, website visits, redemptions, or walk-ins.

Now imagine:

  • You convert just half (68 people) into paying customers.

  • Each customer brings in $150 in revenue.

That’s $10,200 in revenue from a single mailing.

If your EDDM campaign cost $2,000…

✅ Your ROI is 410% — not bad for what looked like a “small” response rate.

And remember…that’s the low end of the direct mail response rate averages.

What Drives Better Than Average Results?

Here’s how smart marketers boost their direct mail performance:

  • Target the right audience: Use tools like Mapfire to filter by income, age, homeownership, and more.

  • Use compelling offers: Free consultations, BOGO deals, or limited-time discounts work wonders.

  • Track your results: QR codes, custom landing pages, and call tracking help you attribute ROI.

  • Go multichannel: Pair your mailer with Facebook or Google ads to increase visibility.

Final Thoughts

A 2.7% response rate isn’t small—it’s powerful when you look at the revenue behind it.
With smart targeting and a strong offer, even a single postcard can generate thousands in return.

So next time you hear “2.7%,” don’t dismiss it—start planning your next campaign.

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