1. High Confidential – UC Office Use Only
DIRECT MAIL MARKETING
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2. High Confidential – UC Office Use Only
WITH THE GROWTH OF TECHNOLOGY AND THE INTERNET, THERE HAS BEEN A STEADY DECLINE IN DIRECT MAIL MARKETING.
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3. High Confidential – UC Office Use Only
HOWEVER… Research indicates direct mail is one of the cheapest and most effective marketing strategies.
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USPS REPORTS 98% of consumers bring their mail in the day it is delivered 77% sift through it immediately
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Here are some of the benefits to direct mail, and how it can be used in conjunction with other marketing strategies.
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BENEFITS: -Reaches a target market Effectively communicates a message -Is Easily measurable
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how can real estate professionals effectively benefit from direct mail marketing to increase their business?
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DEFINE YOUR TARGET
Property Type
Average Price of Property
Location
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EXAMPLE LAND OWNERS WITH 100 ACRES OR MORE with PROPERTY VALUE OF $150,000 IN CLAY COUNTY.
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CHOOSE YOUR MESSAGE
What will draw attention?
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EXAMPLE: MARKET STATISTICS JUST LISTED/SOLD POSTCARDS MONTHLY NEWSLETTER
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12. DETERMINE DATES AND COST
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EXAMPLE
January: 1, = $540
March: 1,000 cents = $580
May: 1, each = $2,000
July: 1, cents = $540
Sept: 1, cents = $580
Nov: 1,000 calendars $2.50 each = $2,500
TOTAL: $6,740
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14. CALCULATE RATE OF RETURN
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EXAMPLE
Historical average rate of return is ½ - 2%. Of those respondents, half of them can be expected to become clients. 6,000 pieces mailed = respondents = listings
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16. Estimate expected results
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17. EXAMPLE
6,000 pieces mailed
Rate of Return: respondents =15-60 listings
Average Sales Price: $150,000
Average Commission rate: 3%
Listings/sales ratio: 3.2
Estimated GCI from campaign: $22,000 - $90,000
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18. MEASURING ROI REVENUE/COST = RETURN ON INVESTMENT
PLAN: 6,000 PIECES MAILED
COST: $6,740
REVENUE: 30 RESPONSES, 7 SALES= $31,500
ROI: $31,500/$6,740= $4.67
FOR EVERY MARKETING DOLLAR SPENT, THEY MADE $4.67
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TRACKING RESPONSE
MAKE IT PART OF YOUR FIRST CONVERSATION WITH EACH NEW PROSPECT TO ASK “HOW DID YOU HEAR ABOUT US?”
INCLUDE A UNIQUE OFFER ON EACH PIECE MAILED
EX: COMPLIMENTARY MARKET ANALYSIS IF YOU SAVE THIS POSTCARD
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THINGS TO REMEMBER
Response rates represent averages calculated over hundreds of mailings
Consistency is the single most important principle
To achieve better response rates, you need to mail repeatedly to the same list and/or increase the number of pieces you send.
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