Many real estate investors wonder - is direct mail dead?
Some have entirely abandoned it, some still do it without being unable to assess its effectiveness, and others swear by it.
Do you want to know what we think based on our expertise? Direct mail is not dead. However, it can't be done as it was just a few years ago.
5 proven steps to running a successful direct mail campaign
The problem with most direct mail initiatives is the lack of customization. Real Estate Investors spam lists of potential leads with the same postcards and letters. Sellers can't even differentiate who sent what, most just remember receiving ugly yellow postcards - some from completely different business industries.
Direct mail has to be done differently to be successful. Here are the 5 steps to follow.
1. The mailing list
Direct mail is best used to try to reach the unreachable. If you already spoke with the sellers by any other mean, e.g. SMS, email or phone, then you don't need to send them direct mail, unless it's to thank them for doing business with you.
Sending mailers to the right people will boost response and conversion rates. These people include:
- Absentee homeowners
- Pre-foreclosures
- Tax Delinquents
- Eviction Records
- Probate
- Expired Listings
- D4D
2. Obtain the mailing address
The owner of the property may or not live at that address, so it's important to have the correct mailing address of the owner to reduce the number of returned mailers.
We obtain addresses from various places and drive to keep our lists updated to detect changes in motivation, mailing address, and ownership.
Some sellers take it personally when confused with others who no longer own the property.
3. Develop multiple mailing pieces
Different sellers have different problems and motivations, specific messages resonate with them, and some markets are niches with unique needs. Here are some tips:
- Keep it simple!
- Ugly is not better - you want the right kind of attention
- Make it unique with some consistent elements to become memorable
- Each mailer should appeal to a specific type of seller
- Each piece should feature a clear call to action (CTA)
- It needs to have features to make testing possible
GoForClose's mail pieces are unique, designed to be memorable and tailored to be tested. We refuse to send blind indistinguishable mailers. We only use what we know works, which leads to the next step.
4. Testing is important!
Too many real estate investors waste their budget mailing what doesn't work. We test each piece and the entire campaign as a whole.
We use integrated marketing tactics to evaluate each piece and the accumulated performance of the mailers in the campaign. Yes, it's a campaign, not a one-time deal.
5. Analyze results
Although it appears as the final step, in reality, it is a reoccurring step to evaluate performance. Remember, it may take 4 - 5 postcards or more before a seller decides to call or submit a form, but it's vital to assess the conversion per piece, the CTAs, the mailing frequency, and the overall conversion per campaign.
We use multiple data points to determine the performance and use it to improve current campaigns and develop new targeted campaigns.
Direct mail is not dead. It has evolved to be a combination of data, marketing, and a touch of psychology. Our team of experts uses all three to bring you the best results.
If you have questions or are curious to know more, request a free consultation below.
