Do you use direct mail to market your child care? Do you know how to tell if the campaign has been successful? Do you have a way to compare it to other marketing campaigns you’re using for your child care? If not, then you are wasting your marketing dollars.
Direct mail can be a powerful way to grab the attention of prospects for your child care that you aren’t able to reach any other way. I’ve seen great success from my child care coaching clients who take a highly targeted, multi-step direct mail approach.
First, you can target the lists for your direct mail campaigns and find 500 to 1000 of the best families that match the demographics of the ideal clients for your child care. Then send multiple pieces in a time frame of two to three weeks to this list. I do this when I promote my Child Care Success Summit training conference. I usually narrow down my list to my best clients, and then send this targeted list a succession of mailings to get them to take action.
When you send out a couple mailings in a multi-step campaign, you want to send follow-up mailings, saying something like, “I didn’t hear from you the first time…..” This will typically double the response rate, so it really can be worth your while. Including some sort of lumpy mail or 3D mail is also a great way to get the attention of the prospects for your child care and can boost your success in enrollments.
So how do you measure the success of direct mail? A question that has popped up in my Insider’s Circle group is about average response rate. Remember that response rate is just one basic measurement of success (and not the only!). It can be used as a benchmark to measure your campaign, but a more important measurement is ROI (return on investment) which we will talk about later.
To answer the questions on response rate, around 1 ½ % – 2 ½ % is the average response rate for direct mail. For example, if you did a mailing to 1000 people in your market, it would be a successful response rate if you received over 20 child care inquiries.
However, there are so many strategies you can use to market your child care and it’s really important to be able to measure the success of each campaign. This will help to compare marketing efforts and determine what’s working. So another important metric to look at is ROI (return on investment), which will help you understand and maximize your revenue at your child care.
Let’s say that out of those 20 families that responded to the direct mail, you convert 8 families to enrollment. If each enrolling family is worth around $10,000 to you for the year (50 weeks x $200/week), the total revenue growth for you was $80,000 from this particular mail campaign.
Then take a look at what you spent on the mailing. Let’s say it cost you $8000 to mail out the 1000 pieces and it returned $80,000 in revenue. Then your ROI is 10:1 or 10x. ($80,000/$8000).
In other words, for every marketing dollar you spent, you gained $10 (10:1). This is much more powerful than only looking at your response rate. With this number you can compare the campaign to other marketing efforts to determine what is the most profitable for you and your child care.
And remember, direct mail is just one form of marketing when you’re working on growing your child care business. Don’t forget to test and use multiple forms of media instead of just depending on one or two. To your child care business success!