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How much will your Direct Mail programme cost? This is one of the first questions that every marketer should ask. You could just add up the costs and budget your campaign accordingly. But a more comprehensive and useful approach to evaluating your campaign is to conduct a Profitability and Break Even Analysis.
Before deciding to go ahead with your programme, you must have a good estimate of the level of response you need if your promotion is to break even, and this will give you a clear idea of the level of risk you are going to take. It will also provide you with a platform for adjusting and refining various components of your campaign, in order to improve its effectiveness.
Please check our Profitability and Breakeven Analysis Sample (Excel 34KB) to review an example, and check our Profitability and Break Even Analysis Template (Excel 34KB) to use a worksheet to analyze your campaign.
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