6 creative Real Estate Direct Mail Campaign Ideas to Win New Clients Without Breaking the Bank
Real estate investors are very familiar with the use of direct mail to grow their client base. In a forum post on Biggerpockets, San Diego multi family investor and founder of Dealcheck.io, Anton Ivanov, describes a direct mailing strategy that earned him 4 new deals of 90 pitches (with a 20% response rate). Anton within 5 years built a portfolio of 35 rental units, generating $10k+ in monthly cash flow. It’s a long post but here is the takeaway:
– Targeted direct mailing, done right, will garner an influx of new high quality leads.
The average direct mail gets a response rate of 5.3%. But Anton was able to get about 20% response rate on his campaigns. And this is what he did:
With his tech savvy and a focus on specific criteria, he was able to streamline a system for reaching out to 90 houses in KC whose address he gleaned off Google maps. Using the property addresses, he found each house’s property tax bills/information, including the owner’s name and mailing address by visiting the local county’s tax assessor website. Now, all that was left was reaching out.
Here are some elements of personalization that went into his direct mail campaign:
– He typed the main body of the letter in a regular white piece of paper, hand signing each one.
– He included a picture of each owner’s house on their letter by taking a screenshot from Google Maps.
– Started each letter with the owner’s name.
– He introduced himself at the beginning of each letter as a serious investor with a good portfolio.
– Listed their specific property address he wanted to buy.
– Finished the letter by letting them know he was ready to buy ASAP. He also listed his phone number and email address.
Out of 90 direct mail pitches, he got responses from 15-20 owners, clinching 4 deals. A really good outcome.
Stats show that direct mail produces an ROI of 29% and a 5.3% response rate. Better than email, paid search, and social media? Yes.
Is Direct Mail Marketing still viable in 2019?
Yes. And here are some interesting stats.
- Four in ten Americans enjoy checking their mailboxes. A personalized direct mail, accompanied by a reward incentive, can produce a response rate of up to 35%. Direct mail has a big impact because it offers a tangible experience for the customer.
- Direct mail response rates for house lists in 2018 was up to 9%.
- Direct mail marketing material that is kept by a prospect has a higher chance of generating a purchase.
- 76% of consumers trust direct mail when they want to make a purchase decision.
- Direct mail is one of the best ways to nurture existing leads and customers. The probability of selling to an existing customer is 60-70% vs the probability of selling to a new customer, which is 5-20%. You can use direct mail to keep your brand top-of-mind with past customers and prospects through retargeting.
Real estate direct mail campaign ideas
- Use direct mail with digital ads.
Again returning to retargeting. You can boost conversions on your digital marketing ads by supplementing with a direct mail strategy. According to Nonprofit PRO, direct mail with digital ads yield a 28% higher conversion rate. For example, when a prospect who visited your site or landing page gets one of your postcards in the box, they would be more inclined to keep it.
- Create full-page listing flyers.
Have a beautiful listing that prospects would like? Create a colorful flyer featuring attractive images of your listing. Full page flyers allow for more imagery and a better sense of space. Plus a well-designed large sized print is prone to get people’s attention.
- Show off just sold listings.
These are a form of social proof. When you display your just sold listings in the area, someone looking to sell is persuaded you have market experience and they’d be more inclined to list with you.
- Reach out to past clients during the holidays.
Former clients represent referral opportunities. Ensure to keep your brand top of mind with them. Reaching out to previous clients on birthdays and holidays is sure to make a good impression in a non-salesy way.
You can configure your CRM to remind you of these dates. Then send them a personalized card. Most of your past clients will appreciate this. After a sale or purchase, you should also consider sending out a personalized letter with a customized “thank you for your business postcard”. Handwritten letters of gratitude make a great impression because they are unique.
- Display your market expertise by sending out market reports.
Potential clients want a realtor who can supply them with relevant information. An easy way to get their attention would be creating and sending out market reports. You can give information about homes selling in the market, median prices and average days on the market. You can also outline tips that can get their home sold fast or for more money.
- Create Formal open house invitations.
You can increase attendance at your open houses by creating formal real estate mailers to send out to your leads in the area. The invitation must be personal, containing the name and address of your prospect. Invitations are a great way to make people feel important. You can also send out invitations to a community event or seminar you’re hosting. Don’t forget to make your invitation personal.
Real Estate Direct Mail Marketing Tips
Keep your message short and simple. You don’t want to bore readers or your mail winds up in the thrash fast. Hence, use more colorful pictures instead of swarming the space with content. Concise and direct copy works best because it doesn’t bombard your prospect with much information. If you’ll be sending out reports, use more of charts and stats to display market expertise.
And don’t forget to make your call to action clear and unmistakable. If there’s no call to action, your direct mail is just another piece of attractive print. What would you like prospects to do? Call? Visit your site? Scan a QR code? Make the information easy to notice and understand.
Note, direct mail doesn’t produce overnight results. According to oncarrot,
“All marketing endeavors, including direct mail, are a long-term play. You won’t send your first postcards and, overnight, spike your sales. But you will steadily increase your brand awareness and lead generation.”
Keep in mind that it takes about five follow-ups after an initial contact to close a potential client. 90% of people give up after the 3rd contact. A study done by the Sales and Marketing Executives International (SMEI) found that after the fifth contact, response rate on direct mail campaigns increased to 81%. This shows why it is essential to have a follow-up system that spaces your mails efficiently. Read about Lead nurturing through emails. Want to save time when sending direct mail? Here’s a tool that helps. You’ll be able to generate targeted mailing lists and send out scheduled direct mails within minutes.