Direct mail has long been successful. 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 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!
Success or failure of a direct-mail campaign is based on several components. First, you must have a fresh, well-targeted database of potential customers to match your ideal message. If you are not sending the right message to the right people, you could be wasting your marketing dollars.
The second component of an effective campaign is to use a letter with a message that has been tested in real campaigns with real consumers. Your message must be on point, clear, and concise. However, creating a targeted message can be tricky. The key is to make an intellectual and responsive connection with your potential customers. Both are important, but the responsive connection will make them pick up the phone to call.
Which leads us to another benefit of direct mail, your prospects call you. That means they call you when a good time to talk works for them. No more awkward cold-calling or ineffective live transfers or internet leads that many of your competitors may or may not have already received. Your potential client is reaching out to you for more information because your message was effective and made them want to know more when it is convenient for them. This is a compelling component of direct-mail marketing.
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.
The last major advantage of direct marketing, compared to other sources, is the scalability. No other channel can compare to an effectively scaled campaign. As your revenues grow, you can continue to scale your volumes to match your needs. This will allow you to target different data types and different geographies as your business continues to grow.
Direct marketing involves a lot of trial and error, which can get expensive and lower your ROI. To reap the benefits of direct-mail marketing, a strong suggestion is to utilize experts in the direct marketing field for mortgages – preferably those who have a long and successful track record for delivering results like Camber Marketing Group. We can help identify and change what is currently working and not working in your market. Mortgage companies are busy lending, so having a strong marketing partner like Camber is vital to helping your company continue to grow and profit. From customizing your campaign to fit your company needs, to generating effective mail pieces and tracking all of your results, Camber Marketing Group can be your one stop shop for your marketing needs.
Stef Lukasik is a marketing and corporate communications manager at Camber Marketing Group, a leader in data-driven direct marketing solutions. Camber Marketing Group works with many of the leading brands in the mortgage industry. Camber Marketing Group has more than 20 years combined of direct marketing industry experience. Visit cambermarketing.com for more information.