EDDM works for local businesses when the offer fits the people on the routes, and it doesn't when it doesn't. Nobody can promise you a response rate. What you can know before you mail is your break-even: how many customers the mailing has to bring in to pay for itself. This page shows that math on a real campaign.
Does EDDM work? The honest answer
EDDM puts a printed piece in every mailbox on the carrier routes you choose, so it works best when most of those households could use what you sell: food, home repairs, a nearby dentist or gym. Response depends on the offer, the design, the routes and how often you mail. Published benchmarks for direct mail exist, and we collect the sourced ones on our direct mail statistics page. Treat them as context, not as a forecast for your mailing.
What does a campaign cost, all-in?
At the time of writing, 5,000 6.5 x 9 postcards with Full Service cost $2,643.17 before tax. That includes printing, bundling by carrier route, USPS paperwork, drop-off and postage. Sales tax (8.25%) is added at checkout on everything except the USPS postage, which comes to $107.59 here, so the mailing costs $2,750.76 all-in.
What is your break-even response?
Divide the all-in cost by the profit you make on one new customer (what you keep after the cost of doing the job, not the sale price). Round up. This is arithmetic, not a forecast.
| Profit per new customer | Math | Customers to break even | Out of 5,000 homes |
|---|---|---|---|
| $50 | $2,750.76 ÷ 50 = 55.02 | 56 | about 1 in 90 |
| $250 | $2,750.76 ÷ 250 = 11.00 | 12 | about 1 in 420 |
| $1,000 | $2,750.76 ÷ 1,000 = 2.75 | 3 | about 1 in 1,670 |
| $5,000 | $2,750.76 ÷ 5,000 = 0.55 | 1 | 1 in 5,000 |
Read the last column against your own experience. If you sell roof replacements, one job out of 5,000 homes is a low bar. If you sell a lunch special, you need repeat visits from each new customer for the numbers to work, so count the profit from a customer's first few months, not one visit.
Rule of thumb: the higher your profit per customer, the less EDDM has to do to pay off. Low-ticket businesses should plan on repeat mailings and repeat customers, and track both.
What moves EDDM response?
- The offer. A specific reason to respond soon (a free estimate, a first-visit price) gives people something to respond to. A logo and a slogan rarely do.
- The routes. Mail the neighborhoods where your customers already are, and check that the homes fit the offer (single-family homes for a roofing offer, for example).
- Timing. Mail when people need you: before the season for HVAC or landscaping, before the holidays for retail. USPS does not guarantee EDDM delivery dates, so leave a buffer.
- Repetition. One mailing is one impression. Many businesses mail the same routes several times before judging them.
- A clear design. One headline, one offer, one way to respond, readable from arm's length.
How do you track EDDM results?
- A QR code or short web address used only on this mailing.
- A dedicated phone number for the campaign.
- A promo code customers mention or enter (keep it short and undated).
- Ask every new customer how they heard about you, and write it down.
- Separate route groups with different codes if you want to compare neighborhoods.
Count responses for several weeks after the drop, then compare customers won against your break-even number.
When EDDM won't work
- Your customer is a narrow group of people (new parents, people over 65) rather than a neighborhood. A targeted mailing list fits better; see EDDM vs. direct mail.
- Your profit per customer is small and customers rarely come back.
- You can only afford one mailing and need it to pay off on its own.
- You have no way to track where new customers came from.
Frequently asked questions
What is a good response rate for EDDM?
One that beats your break-even. Industry benchmarks vary by source, list and offer, and EDDM mails everyone on a route rather than a chosen list, so compare against your own break-even and your own past mailings. Sourced benchmarks are on our statistics page.
How do I work out my break-even response?
All-in campaign cost divided by profit per new customer, rounded up. Then divide the number of homes you mail by that result to see it as "one in every N homes".
How many times should I mail before judging results?
More than once. Plan and budget for a short series to the same routes, then compare what each mailing brought in.
Is EDDM better than social media ads for a local business?
They do different jobs. EDDM reaches every household on your routes with something they hold in their hands; ads can be aimed at interests and changed daily. Many local businesses use both and track each separately.
To run the break-even math on your own neighborhood, see the homes on your routes and the price, free, then plug the total into the table above. For what's included in the price, see our EDDM mailing services page. Questions? Call (346) 306-EDDM (3336).
