Marketing
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7
 min read

Calculating Response Rate

Measuring response rate is also a necessity for all marketing and sales teams because it’ll give you the insights to see what is or isn’t working with your prospects. Which, over time, will help you achieve more results when it comes to your sales and marketing efforts.

WHY CALCULATE RESPONSE RATE?

When it comes to measuring your marketing and sales efforts, response rate is critical to measure because it’ll tell you what is right or wrong with your marketing and sales outreach.

Measuring response rate is also a necessity for all marketing and sales teams because it’ll give you the insights to see what is or isn’t working with your prospects. Which, over time, will help you achieve more results when it comes to your sales and marketing efforts.

Now when you’re calculating response rate, you'll also want to determine a target response rate because these will help you refine your messaging to achieve your given conversion targets or goals. But this may be hard to do because target response rates differ for every business and industry.

Especially when you’re measuring more than one activity such as direct mail, emails, surveys, etc. If you need help with this, read this article that will help you determine a target response rate.

So, I hope by now you understand the importance of measuring response rates because it can be a great indicator of your success as a business. But you may be wondering how do you calculate the response rate?

Let me show you how!

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HOW TO CALCULATE RESPONSE RATE

As I said earlier, the response rate can be calculated for direct mail, surveys, email outreach, and much more. But for now, we will only focus on calculating the response rate for the outreach methods of direct mail, surveys, and email outreach. To calculate the response rate, all you have to do is take the number of outreach messages sent and divide it by the number of prospects that responded to those messages.

Take a look below to see what this formula looks like.

RESPONSE RATE FORMULA

Response Rate Formula:

# of prospects that responded / total # of messages sent X 100 = response rate

To break this down using real numbers, take a look at the following example when this formula is used.

CALCULATING RESPONSE RATE EXAMPLE

Let's say that XYZ Corporation has just completed a direct mail campaign to 100 prospects and they received 30 responses. They now want to figure out their response rate when it comes to this direct mail campaign.

All XYZ Corporation has to do is input the number of prospects they sent direct mail to and input the number of responses they received and times that by 100 to get an exact percentage.

So using the formula, it'll look like this:

30 Responses from Direct Mail / 100 Prospects that were sent direct mail = .30 X 100 = 30% Response Rate.

This formula can also be applied to email and survey campaigns that you’re conducting as well. If you need more resources to explain it differently, Hubspot has this great post about how to calculate your survey's response rates going over these same principles!

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CONCLUSION

To summarize what we’ve covered in this post, we examined why it’s important to calculate response rates. All while teaching you how to use the response rate formula to calculate your campaigns response rate.

Moving forward, when you’re calculating response rates, make sure you're calculating each campaign separately so you can figure out what is or isn’t working while optimizing the rest of your outreach.

Now that you understand the why behind response rates and how to calculate them, what are you going to do today to start measuring response rates?

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If you're interested in improving your response rates and want something different from the traditional outreach methods, check out IgnitePost!

We can help you send highly personalized handwritten letters to all of your prospects so you can improve your response rates in no time at all!

Click here to get started today!

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