Direct Mail Response/Conversion Rates in 2019

12 Replies

HI BP Community!

I'm curious what the current response and conversion rates are for my local New Jersey RE Investors. It seems that for me, both have decreased from this time last year. Quality deals (let's say around 75% ARV) are not making themselves known. My current direct mail campaign is a high quality, professional letter with limited edition stamps.

What do your numbers look like for the past 3 months, or so?

I do want to point out that I let many of the smaller opportunities walk (fed to local realtor) as the risk outweighs the reward.

Just curious if anyone is taking the limited data you get which is normaly just name and address and lender info and then doing a data append to get back more information like phone number, email address, etc.?

I totally understand what you are saying John. It is really a numbers game and I recommend using this kind of appended data with an automatic multi channel marketing system. With this kind of system you can send out emails and voice drop messages to these leads and then just respond back to people who message you or call you back. I am seeing great results from this method with my cients! It is a great use of just a little bit of your time with a large ROI!

@John M. , Have you considered trying post cards?  I have sent out countless thousands over the years.  They work--I think better than letters--because people will read them.  They don't have to open an envelope, they don't have to wonder who it is from.  They just turn it over (before tossing it).  At least they see the message.

Oh yeh, the postage cost is less, too.

Agreed that direct mail today returns/responses are lower than previous years, but it only takes one good deal to make the expense seem trivial.  Good luck!

@Marc Winter ,  I've used postcards in the past and received the typical ~1% response rate.  The responses seemingly were of lower quality than what I'm receiving with the full envelopes (proper letterhead, nice stamp, etc).  That being said, I was thinking of throwing in one postcard mailer to perhaps spur a few more responses.  What do you think your % look like at the moment?

@Doug Starks , can you tell me more about your multi-channel marketing system?  

  • Assuming the cost of a postcard or mailer is about $0.75 (on average), what is the added expense of your MCM?
  • What does your response/conversion rate look like today? Relative to mailers only?
  • Do you receive any responses from email? Are the emails even correct?
  • What type of leads are you seeing in voicemail drops?
  • Facebook or Instagram ads?
  • Geo-IP targeting?

@Anthony Aiello that typically depends on quantity. The more you mail the cheaper the cost is per mailer (For letters and postcards alike). Postcards are typically cheaper than letters, but letters tend to get more responses. If you want more details feel free to reach out. 

Cheers :)

Just curious if everyone is doing 100% direct mail or if your marketing mix includes Web / PPC?  I would strongly recommend creating a website and learning the frontier as soon as possible. Also, just to be clear, I don't think Direct Mail is bad, but if I were to do it, it would be super targeted subject properties that with hand written letters.

Just my .02 - Good luck to all!