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Real Estate Postcard Book

Direct Mail Response Rates Among Real Estate Agents

Brandon Cornett

By Brandon Cornett | 4/21/12
© 2012, All rights reserved
 

Welcome to the Real Estate Postcard Book blog. I am in the process of turning my direct mail e-book into a website, one blog post at a time. Here is today's entry.

I want to share a graphic I created a few years ago, when I was writing the Real Estate Postcard Book. It has to do with direct mail response rates among real estate agents. Within the context of postcard marketing, the “response rate” refers to the number / percentage of recipients who respond to your postcards in some way.

For instance, if you send a mailer to 2,000 people in your town, and you get 20 of them to sign up for the real estate newsletter mentioned in the postcard, you’ve achieved a 1% response rate (20 divided by 2,000 = 0.01 or 1%).

This idea behind this graphic is that most agents achieve a relatively low response rate for their direct mail postcards, while an elite few achieve above-average response rates. I call it the Pyramid of Postcard Success.

pyramid of postcard success

At the bottom of the pyramid, we have ineffective postcards with below-average response rates (let’s say 0% – 0.25%). Whether they realize it or not, this is where most real estate agents fall on the scale. That’s why the base is wider than the top.

The middle section represents average response rates. These postcards generate a response somewhere between 0.5% and 1.5%.

Of course, the top of the pyramid is where you really want to be. These postcards generate above-average responses of 2% or higher. The agents who fall in the top / apex section have probably studied (and applied) the best practices of direct mail marketing.

This is not speculation. It is based on my own experiences working for two direct-mail companies, and also working as a private consultant to several real estate firms. It may be lonely at the top. But it’s definitely where you want to be. You want to generate the highest possible response rate for each of your postcard mailings. And that’s what this book blog is all about. It’s about using the best practices of direct mail marketing to boost your response.

Improving Your Postcard Response Rates

As I continue to convert the book into a blog, you’ll gain hundreds of tips for improving your response rates. Here are a few points to consider in the meantime:

You can increase your direct mail response rates simply redefining the response. You’ll have a hard time getting people to pick up the phone and call you, based on something they read on a mere postcard. But it doesn’t take much to motivate people to sign up for valuable information online. Either way, you are capturing a lead. So why not make it easier on yourself?

The “no-obligation consultation” used to be mainstay of real estate marketing. But that was before the Internet existed. Today, home buyers and homeowners can get a tremendous amount of information online, from home values to mortgage quotes.

If your offer consists of the no-obligation consultation, you have a weak offer. It won’t motivate anyone. On the other hand, if you develop a strong offer based on unique and usable information or services, you can easily d0uble or triple your response rate.

Does your website engage people in some way? Does it allow them to sign up for alerts or news? Does it allow them to participate in forums or other discussion groups? Does it give them a way — any way — to connect with you? Or is the website just a revolving door? You’ll get more out of your real estate postcards if you use them to direct people to an interactive website that allows participation.

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We will talk more about these topics (and a lot more) as the book unfolds onto the website. If you’d like to receive notices when new articles are posted onto the site, you can follow me on Twitter.

Have questions about real estate postcards, or direct mail marketing in general? Need some tips for improving your response rates? Or maybe you have a story to share on this topic? You can leave a comment below. I’d love to hear from you.

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Real Estate Postcard Book