80% of consumers will act on Direct Mail immediately while only 45% say the same of email. Different products and services see varied percentages. High ticket items such as Mortgages require a different set of circumstances and a messaging approach that isn’t the same as the impulse purchase types of messaging or copy.
Email is great for us that need it for direct communication B2B. The B2C arena is different and for the Loan Officer or Realtor, the numbers get pretty dismal. Since it’s almost 10 times more expensive to generate revenue from people who don’t know who you are, we’ll look at some of this from a sphere of influence or past client perspective. Obviously the highest target market you have available.
Email Marketing Pitfalls
- The email “environment” is poor. Thanks to the spam avalanche, sorting through email messages is a real drag. That means your prospects are looking for messages from colleagues, family, and friends, and everything else is out. And fast.
- Email messages have to be (relatively) short. When prospects are going through their email, they want information quickly. So long copy is out. Complex offers are out. Supporting facts and arguments are out.
- Emails limit your creativity. An all-text email is obviously visually quite boring. The message is the whole ball game. Even in an HTML email, you can throw in some color and photography, but the look is never great. Let’s face it. With email, your graphic designer is fighting with one hand tied behind his or her back.
- Great email lists are hard to find. Yeah. List brokers promise you a high-quality “opt-in” list but you’re often playing with fire. The simple fact is that the direct mail list business is a lot more mature and you can find ethical and helpful list brokers if you shop around. But for the Loan Officer and Realtor, your sphere of influence and past clients are where the money will be found.
Email Marketing Benefits
- Email is fast. There’s little doubt that the speed of email is faster than direct mail
- Email is cheap. Email is cheap, 1000 emails for $35 per month is almost nothing
- Email can be tracked electronically. With the right tools, you can track the behaviors of your email opens and whats links have been clicked on. Caveat: Most email marketing companies that deal in lower numbered email lists don’t have analytics that do anything more that tell you if a recipient Opened, Opted-Out, Bounced, or is un-deliverable.
Direct Mail Pros
- The direct mail environment is a good one. Some, call it “junk mail.” But there’s a lot less anger when opening it than “spam.” People don’t come home from a hard days work and read email about the housing marketing. Unfortunately, that’s just a fact. When you sort through your postal mail, you’re much more relaxed and feel less put upon. This difference in receptivity is incalculably important.
- Direct mail gives you the space you need to tell the whole story. If you write a compelling letter, readers will stay with you. They will NOT stick with you in an email. Note: We have our content help service which is free to all Exodus clients and we help you write a message that’s focused on how to maintain your relationships with your Sphere
- In direct mail, you can use emotion. Your newsletter can inspire, frighten, cajole, convince, make cogent arguments, motivate and give your mortgage marketing the value of sharing yourself, sharing your knowledge, becoming family. Readers just don’t want that in an email. They want you to tell them the facts and get out. Which, for the loan and real estate industry is not effective AT ALL!
- In direct mail you can include different pieces you can hold in your hand. I’m talking about a colorful newsletter with testimonials sheet filled with raves, objective product reviews, general advice, calls to action for things you might be involved with like charities, you name it. It’s far easier to capture a reader’s interest or attention. With an email you get pixels on the screen and nothing more.
- You can target your market precisely. While the same can be said for email, the target are your past clients, your sphere of influence, the people that have used your service successfully before. Those who trust you. With the above benefits of direct marketing, it’s both a short and long term win.
Direct Mail Pitfalls
- Postage is more expensive. With a poorly conceived list or an inaccurate database, you could be mailing to the wrong people.
- Direct mail requires design work. A non-issue Exodus does all the design work, no design experience is necessary on your part and it’s free!
- Messaging requires marketing and/or writing skills. Yes it does, but you don’t need to have them. We have them and we include any help necessary to make your direct mail mortgage newsletters a success. just ask any of our clients (see testimonials) and our content help is available for any and all issues and it’s free whenever you need it.