This is a good question to ask yourself if you’re investing money on marketing campaigns. So let’s discuss that right now.
What IS a good response rate for a marketing campaign? Well, there are way more factors that you should consider before you decide what makes a “good” campaign. Let’s review some of the elements of a “good” marketing list before we determine if your response rate is acceptable.
What is a “Response Rate” Anyway?
A response rate refers to the number of people who reply to your message divided by the number of people in the campaign. While response rates are important to know, they don’t tell the REAL tale of how that campaign performed.
Let’s take yellow letters, for instance. This nice handwritten letter does produce a higher response rate than your typical postcard. For obvious reasons, the recipient feels compelled to respond to something that is handwritten. More of these people are more pissed off than interested in selling. So if you were gauging whether or not your campaign did well based only on response rate, it would be bad information to use.
We measure response rates to see how our list responded to the message. It’s just the FIRST step in determining how well the campaign delivered.
Did You Select a Highly Targeted Mailing List?
It’s easy to login to one of the mailing list broker websites like ListSource or Listability, and grab 10,000 names really fast. That’s not the point. Just because you’re sending out postcards to random homeowners doesn’t mean that they’re the best choice of people to receive your message. The more targeted you are in your list selection, the better your response rate will be.
Some good ideas for mailing lists are Probates, Quit Claim Deeds, Delinquent Property Taxes, Evictions, Code Violations, Divorces, and even some “filtered” absentee owners. What do I mean by “filtered”? Absentee Owners isn’t enough. All that means is that the person owns real estate that they don’t live in. I don’t see this as a reason to be automatically pegged as a potentially motivated seller. Don’t get me wrong, I know many investors who make money from absentee owner lists, but I prefer to be more selective in my criteria. When they call, I already get half way excited because I know the origin of their problem.
Every marketing campaign starts with list selection. It plays a big role in getting the initial response rate that you’re hoping for.
Did You Deliver a Clear and Concise Message?
Don’t over complicate the message that you send. Keep it clear and concise. I’ve seen some very “busy” and confusing messages being sent to sellers. It doesn’t have to be that way. The #1 objective of your message is to get the recipient to call. If they’re confused about what you’re offering, your postcard/letter will end up on the trash.
There’s only a few things that your recipients need to know when they read your message.
- Benefit – what is the #1 benefit will they receive if they do business with you? This benefit should be relayed in your headline.
- Deadline – Create some scarcity in your message by giving them a deadline to make contact you. Maybe offer an incentive.
- Call to Action – You have to tell the reader what to do, and when to do it. Sounds lame, but it’s true! Tell them to CALL TODAY
How Many Times Have You Contacted Your Prospect?
Don’t be a one hit wonder and expect for your campaigns to be successful. According to some of the top direct mail marketers in the country, it takes an average of 6 touches to a prospect before they’ll respond.
What does that mean for you?
It means 1 does not equal 6. It means that you can’t expect to see optimal results when mailing to someone just one time. Will you get responses with the first mailing? Yes, of course. Will you get even more with the second, third, and fourth mailing? Absolutely!
Following up with sequential mailings is where investors fail. Don’t be the statistic. Get the most use out of your campaigns by mailing to your prospects more than once.
How Are You Keeping Track of All Of This?
When you deploy a marketing campaign, the leads start to roll in all at once. It’s just how the business and the marketing cycle works. You have to have a system in place to capture every single lead that comes in to your funnel, no matter what!! Even if they’re dead lead or cuss you out.
There’s no way to intelligently analyze a marketing campaign without knowing your numbers. Keeping track of campaigns, leads, and response rates can be challenging to say the least.
There’s a simple solution. It’s called a CRM (which stand for Customer Relationship Manager). It’s software that’s designed to organize and manage all of your leads and campaign neatly in one space. If you’re serious about your real estate business, then you must have one.
There are a couple of options out there for real estate investors, all of which are good products. I’d like to recommend the exact system that I use to manage my business. it’s called Godfather CRM (powered by Zoho CRM).
You can check out a free trial here!
What kind of response rates do I get?
Im sure your probably wondering what kind of response rates that I get from my direct mail campaigns. Its the primary source of all of my seller leads. I’m including a screen shot of my monthly analytics for the past few months, so that you can see what my personal response rates are.
So…To Answer Your Question…
There’s more than one factor to consider when determining if your direct mail campaign was a success. In short, I certainly don’t think that the response rate is what you should use to gauge that information.
The response rate is just one of the numbers that you use when analyzing success. But there are many ways to get a good response rate. Be sure that you are taking the time to make a good list selection, create a good message. and send sequential follow pieces. Then, and only then, will you be able to make a competent decision about your response rates!
Find out the Top 3 Mailing Lists that every Real Estate Wholesaler should be mailing to.