Direct mail has long been a successful tool in a marketer’s belt. In today’s technical world, many people may still wonder, “Why send direct mail when you have the advantage of online advertising, social media, and other avenues?” While these marketing strategies work for many industries, things tend to work differently in the mortgage industry. The benefits of adding a direct mail component to a company’s advertising budget can help take business to the next level.
Recent response data results show monthly response rates up to 1.23% with a targeted direct marketing campaign using direct mail as a vehicle. When mailing 25,000 customers, a 1.23% response would deliver about 308 inbound phone calls. Consider about 25% application rate and a 15% closed loan rate. You would generate 77 applications and 47 closed loans. Imagine how much revenue can be generated in 47 funded loans? Now imagine mailing 50,000 customers or 100,000, the opportunities are endless!
Direct Mail is the only media channel that physically allows you to place your message in your customers’ hands. With physical ads becoming rare in this electronic age, people are more likely to react to something tangible. Most households receive only two pieces of direct mail a day. Compare that to the 157 emails that stuff a household’s inbox daily and you’ll see a clear advantage1.
Another key aspect of direct-mail marketing is the importance of tracking and reporting. The old saying “what gets measured, gets improved” could not be more true in this instance. Many will experiment in direct mail without a clear understanding of what is working and why, or even worse, what is not working and why not. Accurately tracking all calls by mail piece, data type, geography, and letter type are crucial for ongoing success. This is a powerful tool that will allow a business to determine where to put their marketing dollars.
*1 Source: inkit.io