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Direct mail is an interesting business. It has proven effective time and time again yet according to Borrell Associates only 16% of all real estate agents use it. For the ones who use direct mail on a regular basis this is good news. It means you don’t have as much clutter to break through but it doesn’t mean that personalization and creativity can be avoided to achieve outstanding results.

Below are some case studies outside of the real estate industry that have received fantastic results. Time and time again I have heard agents tell me that the most they can expect from their direct mailings is 1%. The following are examples outside of the real estate industry and they prove that with the right message, the right list and the right timing, 1% response rates are disappointing.

CASE STUDY #1
Last year, an innovative direct marketing campaign got really personal with thousands of administrative assistants. The mailer, which achieved an impressive response rate, displayed an overflowing, frothy latte. But what made it stand out was that each of the 14,000 mailers was unique: The recipient’s first name was spelled out, on the latte’s foam, in chocolate sprinkles. Not only did people respond to the mailer, they loved it so much that they kept it and displayed it on their walls. A full 50 percent of the 14,000 administrative assistants went online to enter their personalized URL. Of those, 40 percent completed the survey. (DELIVER MAGAZINE)

CASE STUDY #2
Here’s some good news for auto industry execs and their marketing partners: Consumers respond aggressively to direct mail when they’re in a car-buying mood. 52% of direct mail readers planning to buy a new car read automotive direct mail. But more important, 73 percent of those readers surveyed respond to those mailings by turning to other media and/or heading to dealership showrooms, according to research by Vertis, a Baltimore-based marketing services firm. (DELIVER MAGAZINE)

Case Study #3
BMW has created an internal system that allows their dealers to log on to a site and create a customized mailer to send out to their audience. The program, called Mail Builder, has seen product response rates as high as 10% a notable achievement in the direct mail world. “We’ve had great success in ensuring the right message is conveyed to the right audience at the right time,” said Brian Babcock, conquest specialist at the Woodcliff Lake, NJ company. (DIRECT, OCTOBER 2007)

As real estate professionals, what can we do to be creative and innovative with our direct mail? The tools are out there!

My Blue Goose Matthew S. Gosselin is the author of My Blue Goose, Exploiting The Wow Factor In Real Estate Marketing. The book can be purchased on MyBlueGoose.com or Amazon
 

7 Comments on Get Me A 6%+ Response Rate On My Direct Mail!

Hi Matthew, I use direct mail and make my living doing so.  I have a 'farm' area in my neighborhood and it works.

12/03/2007 10:31 AM by Aggie Networking Kay Perry, A&M Class of '94 & '97 (Classic Realty, Inc./GMAC)


Nice post Matthew,

I think what the case studies are saying that if you make your mailing about the consumer and not about yourself, you'll get a better response rate. 

I can tell you how many post cards I get from other Realtors saying: I'm number one, Top Producer, Awards, Awards and Awards....but rarely do I see a post card that outline the benefits for the consumer and address their needs. 

12/03/2007 10:34 AM by Wayne Miller (Beach & Luxury Realty, Inc)


I am glad to see you are getting are getting good results.  I have done direct mail sporadically in the past with decent results.

12/03/2007 10:40 AM by Rob Arnold, Florida Realtor / Investor (Sand Dollar Realty Group, Inc.)


This is an interesting study. Does it depend on the type of market one is in? Most people I know, stand over the recycling bin with their mail and just toss out the junk mail. I have not used direct mail as part of my marketing strategy but this makes me want to do further research.

12/03/2007 11:00 AM by Gail Reeves Reid (Keller Williams Real Estate Brokerage)


Direct mail, in conjunction with other marketing efforts is a great way to go.  This gives the client something "real" to hold in their hand.  Very often we as an industry rely on email and phone calls to generate business, but the effectiveness of direct mail pieces cannot be denied!

12/03/2007 12:04 PM by Tim Nebergall - Database Driven Website Design, CRM and Marketing Consultant (Will2Design)


Wayne, you hit it dead on.  There is a very ego-centric take on agent advertising.  Most agents are missing the boat that the public wants to know "what's in it for me?"  See direct mail tip #5: http://tinyurl.com/ywaoc6

12/05/2007 08:45 AM by Matthew Gosselin (Author of My Blue Goose)


Thanks for the comment Gail.  Does it depend on the market in which you are conducting your business? In other words is direct mail effective in all markets?  Yes but only if your message is a good one.  If you want to cut through the clutter then make your marketing piece memorable.  Too many agents are still sending boring, flat pieces that mean nothing to the consumer.  It's a waste of time and money.  See the direct mail tips for ideas on how to be different!

12/05/2007 08:48 AM by Matthew Gosselin (Author of My Blue Goose)


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Real Estate Trainer: Matthew Gosselin (Author of My Blue Goose)
Matthew Gosselin
Fort Worth, TX
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