In the age of the Internet (and the decline in direct mail marketing), most people believe that the most effective way to communicate is through online channels. With the ability to send and receive messages instantly, it’s proven to be an efficient way for companies to reach their audiences. However, with the influx of messaging platforms and social media networks, it’s become more challenging for online marketers to grab their customers’ attention, mainly as they compete with other businesses.
For this reason, direct mail marketing remains alive and well, even in a world that seems to be shifting more towards the digital sphere. It’s a proven way to grow your business, primarily when you leverage it properly. Here’s what you need to know about direct mail marketing and how it can help your real estate business:
What is Direct Mail?
Direct mail is physical mail that a company sends to a curated, targeted list of people with the highest probability of responding favorably to the campaign. Many people receive a lot of direct mail in their mailbox and think of them as junk mail until they find one that catches their attention. This type of recipient is precisely what marketers look for, as they’re most likely to convert into buyers.
One of the most important parts of direct mail marketing is taking a chance on these recipients and hoping the odds are in your favor. If you entrust the campaign to an advertising agency, for example, they’ll be able to pick out individuals who are most likely to purchase and create a list for you, increasing these chances even more.
How Does Direct Mail Work?
Direct mail works by sending out mail to a targeted audience. For example, you’ll be sending out 1,000 real estate postcards for $900. Out of the postcards you sent, 6 percent of the recipients call you back, which amounts to 60 phone calls. Then, your company will filter out those who don’t intend to convert, negotiate with those who express interest, and get the contract on a small percentage of them. After that, your company will sell the contract to a local house flipper for $5,000, bringing you $4,100 in profit. You can use these funds to start another direct mail marketing campaign and earn even more.
However, for this to work, you’ll have to keep a few things in mind. You’ll have to consider the wholesale fee, call response rate, the cost per direct-mailed item, and the contract conversion rate. If only 1 percent of people contact you after receiving your mail, you’ll have to adjust your strategy.
Determining Your Direct Mail Target Audience
To get the best chances of launching a successful direct mail campaign, you’ll need to decide who the recipients of these letters will be. Instead of targeting every home in a particular location, consider mailing your cards or letters to people who fit a specific profile.
As someone in the real estate industry, you’ll want to consider the many different profiles you can choose. Absentee owners are those whose mailing address differs from the property address. As implied by the name, inherited owners inherit property from a family member but do not feel motivated to take good care of it. Those going through a divorce are typically very keen on selling their property quickly, which you’ll definitely want to target.
Direct mail marketing is a great way to get the word out about your business and find people in a hurry to sell their property. By investing in direct mail marketing, you’ll enjoy an uninterrupted line of communication with people who are ready to work with you.
Supercharged Offers is a full-service advertising agency specializing in business marketing services for real estate companies. Our wide range of services, including direct mailing services, will skyrocket your business without more effort or budget. Contact us today to learn more!