Define return consistently
For a contribution-based evaluation, calculate ROI as incremental contribution before campaign cost, minus campaign cost, divided by campaign cost. Contribution means revenue after the variable costs of serving the business, using a definition agreed with finance. A revenue-to-spend ratio is a different measure. Label it separately rather than presenting revenue divided by spend as profit ROI. Apply the same treatment to every channel in a comparison.
Count the costs the campaign creates
Include data acquisition and checking, creative production, printing, postage, tracking, landing pages and material operating labour. Identify one-time setup separately from repeatable campaign costs so a pilot does not misrepresent the cost of later waves. Also record incremental follow-up costs where relevant. Decide how shared overhead is treated and keep that policy consistent; selectively including it for one channel undermines the comparison.
Use a transparent worked example
Consider a fictional campaign that costs $4,000 and generates $12,000 in incremental revenue. At a 50% contribution margin before campaign expense, contribution is $6,000 and ROI is ($6,000 − $4,000) ÷ $4,000, or 50%. Revenue divided by campaign spend is 3×, which is not the same result. These numbers illustrate the calculation only. They are not a benchmark or a claim about any Yotru campaign.
Distinguish attribution from lift
A unique link can connect a visit to a mailed record, but it cannot prove that the sale would not otherwise have happened. Assign comparable accounts to mailed and unmailed groups where feasible, preserve equivalent follow-up and observe both groups for the same period. Compare outcomes per eligible account. If assignment is not randomized, differences in account quality may explain some of the apparent lift. Report those limitations alongside the estimate.
Treat pipeline as an intermediate result
Opportunities can help evaluate a long sales cycle, but pipeline value is not realized revenue. Record stage, expected timing and historical conversion assumptions when forecasting. The ShoutEx guide to direct mail costs and pipeline offers a practical discussion of campaign economics. Its revenue multiples should be distinguished from the contribution-based ROI used here. ShoutEx discloses a shared co-founder with Yotru, so this is related commercial guidance rather than independent evidence.
Make the scale decision explicit
Set a maximum acceptable cost per qualified opportunity and a minimum contribution target before launch. Wait long enough for the relevant sales cycle, while checking operational problems early. A single large win can dominate a small pilot, so evaluate concentration as well as totals. Expand in stages when the result persists; revise the list or offer when the funnel exposes a credible weakness; stop when incremental value does not justify further spend.
Sources are linked in the text. Examples are illustrative. About this publication.
