This article is provided by DealMachine. Please read our Editorial Guidelines for more information.
Breaking news: Direct mail remains a key element of real estate marketing, and it has the potential to be bigger and better than ever. This is because digital tools are enhancing analog marketing techniques.
Gone are the days of one size fits all. We all remember the days when piles of the same advertising flyers were sent to hundreds of local mailboxes, only to be discarded by uninterested (and often annoyed) residents. In many cases, printing costs are unjustified given the poor performance of this marketing method.
However, this problem never actually arises with the direct mail marketing method itself. It’s just that it relies on outdated, ineffective marketing techniques.
There is no real contradiction between direct mail marketing and digital marketing. If you know how to get one person to support another, you have a very powerful marketing tool.
The evolution of real estate direct response emails
Research shows that when used correctly, direct marketing is actually the most effective marketing technique in real estate. this Data and Marketing Association Said direct marketing response rate to home listings was 3.7%. By comparison, marketing across all digital channels combined generated only 0.62% response.
Why does direct marketing still have an edge? One reason is that well-crafted print material still has huge appeal: unlike the hundreds of emails or social media ads the average person looks at every day, it’s tactile and eye-catching. Another is that modern direct marketing is highly targeted, supported by digital tools such as analytics and personalization.
Let’s take a closer look at how these digital tools are changing direct marketing campaigns.
How data analysis and segmentation can improve email marketing campaigns
If you’ve ever thrown away a real estate marketing postcard (and we bet you have), it’s either because whatever you received through your mailbox was irrelevant to you, or because it was unappealing and forgettable. Maybe, both.
Real estate marketers have historically relied on guesswork in direct marketing campaigns. They’ll put a photo of the house on the flyer and describe their ability to sell houses: “I’ve sold 100 houses in the last three months!” or “We sell at the best prices,” or some other generic statement. The idea is that if you distribute enough material over a large enough geographic area, the marketing campaign is likely to get a response from someone in that area.
That was before marketers had access to big data. In a sense, the term “big data” is counterintuitive because data analytics, while processing large data sets, amplifies multiple small pieces of information about people’s locations, preferences, and behaviors. Obviously, the property listing people are looking at will be one of those, but it could also be as seemingly innocuous as something they read on a local news site.
Accessing, aggregating, and then analyzing this information about target audiences allows marketers to understand their audiences and the types of groups they form. Instead of taking a “blind guess” approach, you can suddenly answer the following key questions about your potential audience:
- who are they? Is your target audience primarily first-time homebuyers or homeowners looking for a second or third home? Are they elderly homeowners living alone or young families? Data analytics combines elements of what people search for online, helping marketers measure their target groups.
- What kind of home do they want? There is no point in advertising an apartment for rent to a family looking for a three-bedroom home. Or, people in your area may tend to look for specific features in homes (for example, a large backyard, a swimming pool, or a large garage). If they were to sell, would they want to downsize or expand?
- What is important to them? This is a category that many marketers overlook, which can result in direct marketing materials that lack personalization and focus too much on the hard sell. Maybe people in your local community are passionate about local schools; maybe they’re worried about local city tax rates. No matter how small the issue is, if it’s relevant to the local community, you can use it as a direct marketing attraction.
With these messages, you can plan a marketing campaign that is highly targeted and resonates with your recipients. This in turn will increase response rates.
Successful Innovative Direct Email Campaigns: Case Study
The beauty of a direct mail marketing campaign is that you have complete control over the scale of your efforts and add your own creative touches to help you stand out. Here’s how two different investors tailored their direct marketing campaigns to be successful.
Case Study 1: Linda Thornburg, One Texas Homes Real Estate Agent
Linda Thornburg is a Keller Williams real estate agent with One Texas Homes in Austin, Texas. She needs to attract more sellers in her area. Linda mailed 6,000 postcards as part of a campaign specifically targeting homes worth $550,000 or more that have been lived in for 10 years or more.
What makes her direct mail work so special is that she includes three very specific local issues on the front of the card that will resonate with her target audience. The card read: “Taxes too high? Too many repairs? Need help buying a new home?” It also included a picture of recently sold homes in the area and a friendly photo of Linda.
The reason this event was so successful – Linda Generated $20,000 Although only $3,688 was spent, one of the highlights of the campaign was the clear connection it made with the needs and concerns of its target audience. The event is designed to help homeowners solve their problems, which adds to Linda’s value as a professional.
Case study 2: Anton Ivanov, real estate investor
Another approach is hyper-personalization. Anton Ivanov, a rental property investor, said on the BiggerPockets forum A few years ago, he achieved a 20% response rate and four sales through a direct response marketing campaign.
Anton was looking for a multi-unit apartment with four to eight units in Kansas City, but traditional methods of contacting local agents for listing information came up empty handed. So Anton focused on two very specific areas of the city that have large multifamily developments. Anton then compiled a list of suitable owners using publicly available data from the local tax office.
But it was direct mail that got Anton the results he wanted. He writes a personalized offer letter for each owner. “The body of the letter was printed on a plain white paper. However, I handwritten my signature on each copy and handwritten the quote in large font at the top so it stood out.” Anton said.
Anton’s letter also took the time to properly introduce himself “as a serious investor who owns several local properties.” “I wish they at least knew who I was instead of just saying, ‘Hey, sell me your house!'”
Anton’s meticulous approach paid off. While this is time-consuming, modern direct marketing tools, such as machine-written ball pen letters, can help investors achieve the same highly personal approach without spending hours tracking down leads and handwritten letters.
Integrate digital elements with direct mail
Even with the most slick direct marketing campaign, there’s a good chance that even a warm prospect will a) forget to call you, b) lose the postcard or letter, and/or c) become discouraged by a lack of digital interaction options.
While the initial novelty of printed materials is appealing, you must make them as easy to reach as possible. That’s why today’s direct mail materials tend to bridge the offline and online experience by including QR codes or personalized URLs on letters, postcards or brochures. Anything that saves your prospect time and energy is more likely to generate a response.
Whether prospects can scan a code leading to your website or have easy access to a personalized link to a contact form, creating a seamless experience while you’re on their smartphone is critical to maximizing your lead generation .
The role of technology in streamlining direct mail marketing campaigns
Even if you’re targeting a small segment of your local market, the time and effort involved in a traditional direct mail marketing campaign can be daunting. Technology platforms like DealMachine enable real estate investors to efficiently automate and scale direct mail efforts.
First, these platforms will help you through every step of the lead generation process. Data analysis may seem simple and easy to understand, but figuring out which data is important and the sheer volume of information can be a lot to process.
The most common problem is that investors end up with a list of prospects that is too general. A direct selling technology platform can help you generate niche lists and provide you with better response rates.
Next, a direct response email technology platform can help you automatically create and send personalized emails. This doesn’t mean the pieces will be one-size-fits-all – they’ll still be customized to the preferred style and objectives of your event. But you don’t have to spend time designing or hand-signing materials.
Finally, a direct response email technology platform tracks the performance of your marketing campaigns to enable continuous optimization. If you send hundreds or even thousands of direct mail pieces each month, especially if you invest in multiple locations, it can be difficult to track which campaigns are generating responses and which are not. A platform like DealMachine will track the performance of each campaign, allowing you to adjust your strategy as you grow your portfolio.
This article is provided by DealMachine
DealMachine makes it easy for real estate professionals to discover and invest in off-market properties, with comprehensive apps to guide you every step of the way. From identifying potential investments to instantly accessing high-quality homeowner profiles to make informed decisions, we make investing simple and effective. Click to start growing your portfolio today!
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.
