With the announcement that the United States Postal Service (USPS) may be reducing their delivery days, it appears as though direct mail is getting knocked down another rung in the marketing world.
Many of you blog and social network, but have you included email marketing into your arsenal?
Cost Advantages
Email has significant cost savings over direct mail. When looking at a database of 500 people, the most popular postcard size from the leading provider in my area would cost $315 per campaign. Email marketing to a list of that size could cost you $8-$14 dollars and you’re able to email those 500 people multiple times per month for that price.
Effectiveness
Logic dictates that if the USPS is having to consider losing a delivery day, direct mail has fallen out of favor. Ease of use and cost push more and more people into using email. In the last two years, I have seen a majority of people I know move to checking their mailbox once a week or less frequently. I personally only check my mailbox when I’m expecting a movie. Furthermore, there is no effective method for tracking your return on investment for direct mail. All of the popular email marketing companies provide in-depth statistical analysis packages so you can see what your consumers are most interested in to fine-tune future campaigns.
Environmental Impact
Every year, Americans receive 5.6 million tons of junk mail, enough to fill 450,000 garbage trucks. Not to mention the emissions used to create the paper, deliver the product then recycle it at the end. The environment is also your key to growing your list. Many clients I have worked with have extensive direct mail databases. The least expensive way to convert those into email addresses is to call. The fastest way is to send one last direct mail campaign with a message similar to “Help me go green”. Ask people to provide you with their email address over the phone, by email or by signing up on your web site. People I have helped do this have seen a better than 85% conversion rate in their first campaign.
Choice
The truth is, however, that some people prefer direct mail. It feels more personal. They like touching something. They don’t want more “stuff” in the inbox. That’s the beauty of the marketing campaign I just suggested, it allows people to choose if they would rather get your communications via email. If we take that same database of 500 people and get an 85% conversion rate, our direct mail budget is reduced by almost $270 dollars. If you want to communicate monthly, that’s over $3,000 per year you could be saving.
Options
There are a lot of different providers out there, but the benefits of going with a real email distribution company include:
- Templates that are tested to work in most, if not all, email programs
- Tracking capabilities
- Scheduling capabilities (write your email now, send it next month)
- List management (if people unsubscribe or there are bounces, you don’t have to personally clean your database
- Email personalization
Although these companies cost money, it is a far better alternative than trying to use Outlook. Here is a short list of a few of the options I have tried. Each one has their advantages and disadvantages, but they all offer free trials, so find the one that suits you best.
Paula Henry
January 29, 2009 at 10:24 pm
Nick – Just had this converstaion online and in person. On Twitter another agent said, Realtors “please quit sending out recipe cards”, to which I wholeheartedly agreed. The other converstaion was with an agent determined to go back in time and start “farming”. Oh, the nonsense of it all.
I check my mail about twice a week. As my contact list gets larger, I am looking at one of these email programs, just undecided which one.
The only real reason to send snail mail is if it is personal and hand written. Just my opinion:)
Missy Caulk
January 30, 2009 at 8:15 pm
I stopped the post card mailings many years ago, it was just not cost effective. As you said 3-500.00 each time.
I did do snail mail birthday cards, then went to email ones the last two years and now I am back to hard copy ones.
Somehow it just seemed to mean more to everyone.
Ruthmarie Hicks
January 31, 2009 at 1:03 am
Do we really NEED the post office?? I just discovered by accident how LITTLE I actually need them. The Northeast has had a lot of snow and severe cold this winter. A snow plow knocked over my mailbox after the first snow. With the ground frozen…I haven’t been able to put the mail box back in the ground. So for the last 6-7 weeks – no snail mail except when I pick it up. Since you have to wait about 1 hour at our P.O. I’ve only collected the mail ONCE. Obviously, I don’t see a burning need to get the mail because most of my business is conducted ON-LINE including bills etc. There were some Christmas cards at the end of Dec that I wouldn’t want to miss out on. The rest was nearly all redundant or pure junk. In fact, I have far less garbage to recycle. Talk about waste.
My conclusion: Postal workers need to start polishing their resumes. Although there will always be snail mail – Obama is on the right track. Get rid of the junk mail and you could cut the postal system to 1/4th its present size. Nationally, we might easily get away with 3-4 days of delivery.
However, for introducing yourself to a neighborhood – particularly a condo complex with locked entries and a doorman standing between you and potential clients – bulk mail has been somewhat effective for establishing a presence. I have a listing appointment from a postcard mailing early next week – and our market is almost at a standstill. Do people want the mail? Probably not – but people do seem to remember my post cards (which are very unique.)
The way I “touch” people I’ve met or those who have contacted me through my website etc. – EMAIL, PHONE, TEXT MESSAGE, FACEBOOK…not MAIL.
Judy Peterson
January 31, 2009 at 7:14 am
And emails or blog posts last longer than the walk from the mail box to the circular file.
Christina Ethridge - North Idaho Real Estate
February 2, 2009 at 10:22 am
“Logic dictates that if the USPS is having to consider losing a delivery day, direct mail has fallen out of favor.”
Really? What logic? Perhaps it’s not so much that direct mail has fallen out of favor but that people pretty much no longer send personal notes, letters, cards. Perhaps UPS/Fedex have taken a dominate control of package shipping. Perhaps USPS has been so completely irresponsible with their budgeting and business methods that they simply can’t adapt and keep up with financial changes.
Frankly, direct mail hasn’t fallen out of favor… to use it effectively, you have to know what to send, when to send and who to send it to. Recipe cards just don’t cut it.
Nick Bostic
February 3, 2009 at 6:55 pm
@Paula – I completely agree with you, I will check personal handwritten mail, the problem is if it’s time sensitive odds are I won’t get it in time. Plus, even if it’s something nice, emails can be nice and are better on the environment.
@Missy – Our title company used to send handwritten Christmas cards. This year, we did a cheesy video of all of our employees in Santa hats waving like dorks and emailed it out. Every one of our customers, except ONE, LOVED IT. One out of 4,000+ people makes sense and cents 🙂
@Ruthmarie – I’ve been online and trying to stop the rest of my mail for years. Aside from my movies, I could really live without the post office. We’ve had a lot of problems in my area getting mass mail postcards to condo developments, but if that works in your area, I can see the value.
@Judy – Very true, and are easier to share with more people.
@Christina – I did those cheesy logic problem books as a kid, so logic comes pretty easy to me (it frustrates my lawyer sister). When a business cuts hours or goes out of business, logic very clearly dictates they weren’t successful. USPS is still far easier to send from home than UPS/Fedex. USPS accounts for 46% of the world’s card and letter deliveries, which is the direct mail most people in this industry send. But the overall volume of that type of mail has decreased, logically because people aren’t using it as much. For cards, letters and the like, UPS/Fedex are considerably more expensive and I’ve come to learn that REALTORs are very price sensitive. We’ll have to agree to disagree, the facts I’ve seen clearly show that direct mail is rapidly losing ground to other marketing methods.
Ruthmarie Hicks
February 4, 2009 at 8:51 pm
Here’s an update – I did just get a listing agreement from a post card. Nothing else – although I did a really nice listing presentation – I was surprised that the client was not interviewing extensively. I’m good at what I do – and very happy to do it, but these days I think this is pretty unusual.
I do have the “less is more” approach to mailing. I only send things out about 5-6 times a year. What I send is expensive, but unique. NO ONE else does what I do – and most people will look twice at the type of post card I send. I don’t send things in envelopes that people have to open. Just unique cards – each with a unique message.
Btw, I think its time for national email addresses! Wouldn’t that be a cool thing for Obama to add to his stimulus package? It would take the place of snail mail for everything save packages and things that require paper.
Bruce Lemieux
February 8, 2009 at 7:00 pm
Implementing an effective direct mail campaign is difficult and expensive. But, no doubt, it is a very powerful tool. It is the foundation of my marketing strategy. Here’s why I love direct mail:
1. I have a geographical farm. I *know* that my audience gets my piece. No spam filter.
2. I send big, very high-quality pieces that build and re-enforce my brand. So, even if it takes 5 seconds to pickup, glance and throw in the trash, the impression is “These guys sell a lot of real estate. These guys are professional”
3. I can target my pieces directly to the audience making it more relevant.
4. Direct mail + for sale signs + yard signs in a concentrated area tells my target audience that I’m the area expert. On listings, we often get “we see you everywhere”. Not so without direct mail.
Implementing a cost-effective campaign is tough. If I were in a lower-priced market, it may not make since. For me, however, the high-cost is a good thing. It presents a barrier to entry for most other agents, so I’m competing with fewer other agents.
I love direct mail!