Every day that I go to work I am asked this same question by our potential clients:
“I need new clients. Should I mail a postcard or a letter?”
They are both effective, however, they both have distinct advantages.
Postcard Advantages:
Don’t want your direct mail to end up in the trash with the rest of the unread mail? Studies show an effective direct mail campaign should draw a .5 to 1 percent response. These 10 tips will help you get the results you want:
1. A clear, bold headline. On the envelope or front of the mailer there should be one central message. The best way to achieve that is with a bold, clear headline that’s not cluttered up with other text. A good guideline is to have the headline fill up at least 15% of the front of the mailer.
2. A graphic that supports the message. The graphic should be easy to understand and add to the message the headline is trying to convey. For instance, if you are trying to get people to list their home you would want to show a home with a SOLD sign clearly visible out front. That graphic reinforces the message more than a simple picture of a home.
Where to Start:
Most novice marketers have definite fixed ideas about direct mail that are way off base – most often in the area of what to spend and how much to do. You should determine what you are able to spend for your marketing budget, spend it, and determine the maximum number of leads that you can create. For instance, I’ve heard this statement quite often: “We aren’t that large of a company. How could we send out 2,000 postcards all at once?” because “What if they all call?” – seems like a valid concern, right?
Here is the reality behind it: Unfortunately they won’t all call. However, a good deal of them very well may and making sure that your traffic in is not more than you can handle is something to think about. Truthfully, there is no sure way to tell exactly how many people will call if you haven’t done this type of marketing before. Think of it this way. What would happen if they did all call? You may not be able to handle all of them, but you would handle as many as you possibly could, right?
In this scenario, you would have maximized your income for that time period providing you could close up all those callers! You can also explore the idea of expanding your operation to handle the number of leads that you can create.
Where to Start:
Most novice marketers have definite fixed ideas about direct mail that are way off base – most often in the area of what to spend and how much to do. You should determine what you are able to spend for your marketing budget, spend it, and determine the maximum number of leads that you can create. For instance, I’ve heard this statement quite often: “We aren’t that large of a company. How could we send out 2,000 postcards all at once?” because “What if they all call?” – seems like a valid concern, right?
Here is the reality behind it: Unfortunately they won’t all call. However, a good deal of them very well may and making sure that your traffic in is not more than you can handle is something to think about. Truthfully, there is no sure way to tell exactly how many people will call if you haven’t done this type of marketing before. Think of it this way. What would happen if they did all call? You may not be able to handle all of them, but you would handle as many as you possibly could, right?
In this scenario, you would have maximized your income for that time period providing you could close up all those callers! You can also explore the idea of expanding your operation to handle the number of leads that you can create.
The number of businesses using direct mail marketing now compared to how many used this medium 10 to 15 years ago is staggeringly higher. More and more marketers understand its effectiveness and are on the bandwagon – especially Mortgage Brokers.
Years back the novelty of receiving an advertisement in your mailbox was such that any direct mail pieces were not only looked at but mulled over. Not so anymore. The term ‘junk mail’ was coined sometime since then and I’m sure you’ve thrown out your fair share of unread pieces enough to understand why. So, what can you do about it as a marketer? How can you ensure you get the biggest bang for your direct mail dollar? Now more than ever, you have to understand how to put together a direct mail piece. More than ever you have to really target your mailing to go to a specific market. And more than ever you need to be patient and learn how to campaign – because that is the key to success. Don’t get me wrong… direct mail is not dead – and I don’t see it dying any time soon. It is still the quintessential part of the largest company’s campaigns. Because it works.
In this article I will teach you some of these three topics:
You have to market to stay ahead in business today. Even if you live in a small community, marketing plays a big role in making your business creditable. Consumers today are subjected to anywhere from 1800 – 3000 advertising messages per day. With that large of a statistic, it is no longer viable to rely only on word-of-mouth marketing.
Word-of-mouth marketing is the best way to build a reputation, but if a competitor’s marketing message comes along that hits your consumers’ “buttons” they may be likely to leave your business in search for a better price, closer location or just plain curiosity.
You have to continually market to let people know you exist and so they will not forget about you. The way you do it may vary depending on your type of business, but there is one marketing avenue that will get you an excellent return on investment, if done right. Direct mail.
Defining â??Correct Estimation of Effortâ??
What is the correct estimation of effort for your marketing? Do you know the answer to that question? Figuring out what it is for your business is relatively simple once youâ??ve done some test mailings. For most business owners, mortgage brokers included, marketing is about as clear and certain as being blindfolded in the middle of a six lane freeway. Because of this they make assumptions that are way off base in the areas of how much to spend and how much to mail out. There is a mathematical formula that I have discovered that works through and through. When you use it, you will never be in the dark again.
I remember a time in my business where we were sending out 2500 postcards per week to our prospective clients. We did quite well â?? until we hit a plateau. A plateau that was totally frustrating. We wanted to grow and were beating our heads against the wall trying to figure out why, no matter how hard we pushed, we were not able to push up to the next level. Then, one day in a fit of thinking-outside-the-box passion, my execs and I decided to double the number to 5000 per week! That simple action burst us through that seemingly impenetrable barrier and my company has never quit expanding since.
What I learned in that instance was something very valuable. I could determine the correct estimation of effort of my marketing to control how fast my company expanded. I learned how to project the amount of income I could make by testing and tracking my postcard marketing. Then I figured out what I needed to do to get more leads and more closes based on my tracking results. So, by tracking the number of leads, how many of those leads closed and for what dollar amount they closed for, I was able to ascertain the future number of leads, the future closes and the return on investment (dollar amount) for each increased postcard mailing. It became a science and that science has paid off. (By the way: My company now mails out 76,000 postcards per week.)How It Can Pay Off For You Too
So you have been writing mortgages like crazy now for the last few years. You have a pretty big database of customers and hopefully you have been getting and keeping full contact information for them. An organized database is the first key to customer retention.
The next step is to put together a direct mail campaign to keep these customers thinking about you when they think about mortgages. It is often years between times when each customer needs a mortgage professional, and it takes far less than that for them to forget your name. As well as fighting time, you are fighting indifference. Customers who get great service are often reluctant to pass that information along, while customers who feel they have gotten poor service will tell everyone. Most of the time good customers need to be reminded of their experience. By following up with each customer on a regular basis you will not only stay in the front of their mind but you will also start to build a reputation as a solid and responsible business.
So how do you get started? Below are a couple of the most frequently asked questions when starting a campaign to keep in touch with past clients.
