One of the most common questions we receive when a Realtor® is considering a postcard marketing campaign is “what kind of response rates can I expect?” It’s not an easy question to answer because there are so many different factors that come in to play with any postcard marketing campaign, the most important being “how committed are you?” While we aren’t in a position to promise results, we can provide some hard core facts about direct mail marketing and the standard response rates as reported by the Direct Marketing Association (DMA).
The DMA studies every marketing medium out there and provides an annual report based on their findings. This report provides the answers to ALL of your marketing questions. We’re happy to send you a copy of this year’s report, it’s everything you need to know about where to focus your real estate marketing efforts.
I think before digging in to the “stats” its important to note the factors that play such a significant role in the success of your mailing campaign.
- A postcard mailing will NOT yield results, a postcard campaign will yield results. The difference between the two being a one-shot marketing piece vs. a campaign that keeps going until… (The “until” in my own mind is “until I don’t want to be in business anymore”)
- The quality of your database will substantially impact your results. (Visit Cole Realty for information on Databases, mention Real Estate Marketing Magazine and receive a 25% discount on services)
- Your audience needs to match your marketing efforts. If you are marketing daycare services in a retirement community, chances are you won’t get good results. A first-time home buyer (FTHB) marketing piece is not likely a good fit in a neighborhood where home values are high, it would get much better results in an apartment/town-home type community.
- You’ll have a dramatically higher success rate by mailing to a list of people you know vs. a list of strangers. (Check out these free letters you can download to help you get back in touch with your sphere)
- Real estate is a relationship based business, it’s not a quick sale like ordering a pizza. People move on average of once every 5-7 years according to the latest studies and your marketing needs to be present at the time a person is ready to move, which indicates a five year commitment. (93% of American families eat pizza at least once per month)
- The average cost of a postcard marketing campaign for one home, once per month over a five year period is approximately $30. Based on a 3% commission rate and average home prices, the average real estate commission check is approximately $2700. I’d say you’re looking an a great return on your marketing investment, would you?
- The quality of your postcard, your messaging, your call-to-action and your accessibility, be it on-line, email, telephone, text are also factors. If I can connect with you on Facebook or follow you on Twitter to keep in touch, that too will improve your response rates.
Below are excerpts from the report.
Direct mail is one of the most cost effective means of marketing to your list.
Postcards have the highest response rate
Postcards work best with both prospects and your sphere of influence (House File). House Files have double the response rates.
Your marketing dollars are best spent on past clients and those who are familiar with you. There’s nearly a 15% difference with familiarity!
The moral of the story: There’s no guarantee when it comes to marketing, but some options work better than others. Some methods cost less than others, postcard marketing being the most cost effective from a cost per lead/transaction. The only way you’ll find real success in your real estate marketing efforts is if you commit to your marketing and the relationship your marketing builds with the people receiving it.
We’re happy to send you the report, please provide your information below and we’ll get it right out. It really is so fascinating!