{"id":170598,"date":"2024-04-15T13:24:02","date_gmt":"2024-04-15T19:24:02","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=170598"},"modified":"2024-05-17T02:05:19","modified_gmt":"2024-05-17T08:05:19","slug":"direct-mail-strategies-for-real-estate-investors","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/direct-mail-strategies-for-real-estate-investors","title":{"rendered":"Beyond the Mailbox: Innovative Direct Mail Strategies That Win in Today\u2019s Market"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC5784593378\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><em>This article is presented by DealMachine. Read our&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/editorial-blog-guidelines\" target=\"_blank\" rel=\"noreferrer noopener\">editorial guidelines<\/a>&nbsp;for more information.<\/em><\/p>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Breaking news:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Direct mail is still a key factor in real estate marketing, and it has the potential to be bigger and better than ever before. That\u2019s because the analog marketing technique is being supercharged by digital tools.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The days of the one-size-fits-all approach are gone. We all remember those days: stacks and stacks of the same advertising leaflets delivered to hundreds of local mailboxes, only to be discarded by uninterested (and often annoyed) residents. The cost of printing was, in many cases, unjustifiable, given the lackluster performance of this marketing method.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, the problem never actually occurred with the direct mail marketing method itself. It\u2019s just that it relied on outdated, ineffective marketing techniques.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There is no real contradiction between direct mail marketing and digital marketing. If you know how to get one to support the other, you have a very powerful marketing tool.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Evolution of Direct Mail in Real Estate<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Research shows that direct marketing is, in fact, the most effective marketing technique in real estate if done right. The&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/dma.org.uk\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Data &amp; Marketing Association<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;says direct marketing yields a 3.7% response to home listings. In contrast, marketing through all digital channels combined only yields a response of 0.62%.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Why does direct marketing still have the edge? One reason is that well-crafted printed material still has enormous appeal: It is tactile and stands out, unlike the hundreds of emails or social media ads a typical person looks at every day. The other is that modern direct marketing is highly targeted when powered by digital tools like analytics and personalization.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let\u2019s take a closer look at how these digital tools are transforming direct marketing campaigns.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Data Analytics and Segmentation Improve Mail Campaigns<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you\u2019ve ever thrown away a real estate marketing postcard (we bet you have), it was either because whatever you received through your mailbox was irrelevant to you, or it was unengaging and forgettable. Probably, it was both.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Real estate marketers used to rely on guesswork in their direct marketing campaigns. They would put a picture of a house on a flier and say something about their abilities to sell homes: \u201cI sold 100 homes in the past three months!\u201d or \u201cWe sell at best prices,\u201d or some other generic statement. The idea was that if you distributed enough of the material across a large enough geographical area, the marketing campaign would probably get a response from someone in the area.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That was before marketers got access to big data. In a sense, the term &#8220;big data&#8221; is counterintuitive because data analytics, although it crunches large data sets, zooms in on multiple small bits of information about people\u2019s location, preferences, and behaviors. Obviously, what property listings people look at will be one of those bits, but it could also be something as seemingly irrelevant as what they read about on the local news site.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Accessing, aggregating, and then analyzing these bits of information about your target audience allows marketers to understand their audiences and what types of groups they form. Instead of the \u201cshot-in-the-dark\u201d approach, suddenly you\u2019re able to answer these key questions about your potential demographic:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Who are they?<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Is your target audience primarily first-time buyers or homeowners looking for their second or third home? Are they older homeowners living singly or young families? Data analytics piece together elements from people\u2019s online searches to help marketers gauge their target demographic.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">What kind of home do they want?<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;There\u2019s no point advertising apartment rentals to families looking for three-bedroom homes. Or perhaps people in your area tend to look for a specific feature in a home (e.g., a large backyard, a pool, or a large garage). If they\u2019re selling, do they want to downsize or upsize?<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">What matters to them?<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;This is the category many marketers overlook, which can result in direct marketing materials that are impersonal and too focused on the hard sell. Maybe people in your local community are passionate about local schools; maybe they\u2019re concerned about the local city tax rates. However small the issue, if it\u2019s relevant to the local community, you can use it as a draw in your direct marketing.&nbsp; &nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Armed with this information, you can craft a campaign that is highly targeted and resonates with the recipient. This in turn will improve response rates.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Successful Innovative Direct Mail Campaigns: Case Studies&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The beauty of direct mail campaigns is that you can have total control over the scale of your effort\u2014and add a creative twist all of your own to help you stand out from the crowd. Here\u2019s a look at how two different investors tailored their direct marketing campaigns to success.&nbsp; &nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Case study 1: Linda Thornburg, real estate agent at One Texas Homes<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Linda Thornburg is a Keller Williams real estate agent with One Texas Homes in Austin, Texas. She needed to attract more sellers in her area. Linda mailed 6,000 postcards as part of a campaign that was targeted very specifically at homes valued at $550,000 or more with a residency of 10 years or more.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">What made her direct mail effort so special was the fact that she included three very specific local concerns that would resonate with her target audience on the front of the card. The card says: \u201cTaxes getting too high? Too many repairs? Need help to buy a new home?\u201d There\u2019s also an image of a recently sold home in the area and a friendly photo of Linda.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The reason why this campaign was so successful\u2014Linda&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.postcardmania.com\/case-studies\/real-estate\/austin-tx-3\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">generated $20,000<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;off the campaign despite only spending $3,688\u2014is that it established a clear connection with the needs and concerns of her target demographic. The campaign offers to help homeowners with their problems, which adds to Linda\u2019s value as a professional.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Case study 2: Anton Ivanov, real estate investor<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Another way to go is hyper-personalization. Anton Ivanov, a rental property investor,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\/88\/topics\/565862-how-i-ran-a-direct-mail-campaign-with-20-response-rate-and-4-sales\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">said on the BiggerPockets Forums<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;that he achieved a 20% response rate and four sales with his direct mail campaign several years ago.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Anton was looking for four-to-eight-unit multis in Kansas City and wasn\u2019t getting anywhere via the traditional route of contacting local agents for listings. So Anton zoomed in on two very specific areas of the city that had large developments of multifamily buildings. Anton then compiled a list of suitable owners using publicly available data from the local tax office.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But it\u2019s the style of the direct mail that got Anton the results he was looking for. He wrote an offer letter personalized to each owner. \u201cThe main body of the letter was typed on a regular white piece of paper. However, I hand-signed each one and also hand-wrote the offer price in large font at the top so it stood out,\u201d said Anton.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Anton also took time to introduce himself properly \u201cas a serious investor who owns several local properties\u201d in the letter. \u201cI wanted them to at least know who I am instead of just saying, \u2018Hey, sell me your house!\u2019\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Anton\u2019s meticulous approach paid off. It is time-consuming, but modern direct marketing tools like machine-written ballpoint letters can help investors achieve the same highly personalized approach without spending hours tracking down prospects and handwriting letters.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Integrating Digital Elements With Direct Mail&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even with the most ingenious direct marketing campaign, there\u2019s a very real chance that even an enthusiastic prospect will a) forget to give you a call, b) lose the postcard or letter, and\/or c) get discouraged by the lack of digital interaction options.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While the initial novelty of the printed material is the hook, you must make getting in touch with you as easy as possible. This is why today\u2019s direct mail materials tend to bridge the offline and the online experience by including QR codes or personalized URLs on letters, postcards, or brochures. Anything that saves the potential prospect time and effort is just that much more likely to generate a response.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whether the prospect can scan a code that leads to your website or can easily access a personalized link to a contact form, creating a seamless experience where you will now be on their smartphone is crucial to maximizing leads.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Role of Technology in Streamlining Direct Mail Campaigns<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even if you are tackling a small segment of a local market, the amount of time and effort that goes into a traditional direct mail campaign can be daunting. Technology platforms like DealMachine empower real estate investors to automate and scale direct mail efforts efficiently.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">First, these platforms will help you with every step of the lead generation process. Data analytics can seem simple and accessible, but figuring out which bits of the data are significant, as well as the sheer volume of information, can be a lot to deal with.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The most common problem is that investors end up with lists of prospects that are too general. A direct marketing technology platform helps you generate a niche list and will give you a better response rate.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Next, direct mail technology platforms help you by automating the creation and sending of personalized mail pieces. That doesn\u2019t mean the pieces will be generic\u2014they will still be tailored to the preferred style and target goal of your campaign. But you won\u2019t have to spend time designing or hand-signing the materials.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Finally, direct mail technology platforms track the performance of your campaigns, which allows for continuous optimization. If you send hundreds or even thousands of direct mail pieces every month, especially if you\u2019re investing in multiple locations, it can be hard to keep track of which campaigns are generating responses and which aren\u2019t. Platforms like DealMachine will track the performance of each campaign, allowing you to tweak your strategy as you grow your portfolio.<\/span><\/p>\n\n\n\n<div class=\"wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n    \n  <div \n    id=\"segemnt-view-event-block_624f52525847f\" \n    class=\"  \"\n    x-intersect:enter.once=\"\n      analytics.track('DoorLoop Blog Sponsor View', {\n        referrer: 'https:\/\/www.biggerpockets.com\/blog\/direct-mail-strategies-for-real-estate-investors',\n              })\n    \">\n    \n  <\/div>\n  \n\n\n<h3 class=\"wp-block-heading has-text-align-left mt-0\"><strong>This article is presented by DealMachine<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"251\" height=\"201\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/DealMachine.png\" alt=\"\" class=\"wp-image-166381\" style=\"width:301px;height:auto\" title=\"\"><\/figure>\n\n\n\n<p>DealMachine empowers real estate professionals to discover and invest in off-market properties with ease, offering a comprehensive app that guides you every step of the way. From identifying potential investments to instantly accessing high-quality homeowner data for informed decision-making, we make investing simple and effective. Click to start expanding your portfolio today!<\/p>\n\n\n\n<div id=button-custom-event-block_63c9a33918e17 class='button-custom-event'>\n      <a href=\"https:\/\/www.dealmachine.com\/bp-article?utm_campaign=Bigger%20Pockets%202024&#038;utm_source=BP%20Blog&#038;utm_medium=Article&#038;utm_content=BP%20Article%20%231\" x-on:click=\"window.analytics.track(&#039;Sponsored Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/direct-mail-strategies-for-real-estate-investors&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn more about DealMachine<\/a>\n  <\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>This article is presented by DealMachine. Read our&nbsp;editorial guidelines&nbsp;for more information. Breaking news:&nbsp;Direct mail is still a key factor in real estate marketing, and it has the potential to be [&hellip;]<\/p>\n","protected":false},"author":613721,"featured_media":170601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5529,7119],"tags":[],"class_list":["post-170598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-marketing","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613721"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=170598"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/170601"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=170598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=170598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=170598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}