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Mortgage Direct Mail: Proven Strategies for Marketing Success

April 26, 2023 by FSSI Splash

an example of a direct mail postcard used in the mortgage industry

When you hear the word “direct mail,” do you have a specific mailpiece that comes to mind? Bed, Bath and Beyond (yes), Ikea (yes), ValuPak (yes), local restaurants and businesses (yes and yes). So, why can’t your mortgage direct mail have the same effect?

If you aren’t using direct mail advertising as a marketing tool for your mortgage business, you’re likely missing out on valuable brand-building and lead generation opportunities. With the right strategy, direct mailpieces like postcards, self-mailers and letters are a highly-effective, proven way to target highly converting mortgage leads, grow your business and stand out – especially in a highly-competitive marketplace.

Let’s explore the benefits of direct marketing for the mortgage industry, with tricks and tips to make the most of your campaign – reaching your target audience and generating mortgage leads.

Direct Response Marketing Insights

Think for a moment of the compounding benefits of the previous examples – you’ve seen them often enough to recognize the brands, and what constitutes a good offer. The same can be said of your mortgage business, so when it comes time to buy or refinance a home, people think of you – or act on your special offer or promotion.

And direct marketing is no slouch. Industry data shows that direct marketers mailed more than 5.6 billion pieces in Q4 of 2022 – with the total 2022 marketing direct mail volume at 33.5 billion pieces. ¹ Also, according to Marketreach’s Direct Mail Year in Review,a more modern, engaging approach to mail is driving an uptick in attention across all ages. ² So, clearly direct response advertising creates results – especially when it’s done well (i.e., connecting with the right people at the right time with the right offer).

Understanding the Benefits of Direct Mail for the Mortgage Industry

According to the Data and Marketing Association (DMA), direct mail response rates outperform email marketing. It’s no wonder then that mortgage direct response marketing offers distinct advantages for mortgage professionals (mortgage officers, mortgage brokers, mortgage lenders, mortgage loan originators, and real estate agents and brokers), including:

  • Targeted Marketing – Direct mail advertising allows you to target specific groups of people, such as homeowners in a particular neighborhood or people with a certain credit score. This targeted approach ensures that your message is reaching the right people, increasing the likelihood of a successful campaign.
  • Cost-Effective – Compared to other forms of advertising, such as online or radio ads, mortgage direct marketing is relatively inexpensive (especially when you calculate the per-piece cost). This makes it a cost-effective option for businesses looking to reach many people without breaking the bank.
  • Measurable Results – With modern direct mail advertising, there’s more transparency than you think. You can track the success of your campaign – right down to the delivery and response rates – with the opportunity to adjust as needed. This allows you to see what is working and what isn’t, and to make changes to improve your results.
  • Personal Touch – Direct mail allows you to personalize your message and make a connection with potential clients. By including personalization via variable data printing, you can include the recipient’s first name, customized messaging and imagery, plus a special offer, to make the mailpiece stand out and increase the chances of getting a response.
examples of direct mail postcards for the mortgage industry

Examples of Mortgage Direct Mail

“Variety is the spice of life” and the same can be said for direct mail. Mailpieces come in many shapes and sizes – with postage often playing a factor in the decision-making process. The size and type of mailpiece lets you tailor the message and graphics to your audience and maximize the impact of the campaign – even allowing you to combine types for a varied visual and tactile approach. Electronic direct mail (EDM) also plays into the types of direct mail, enabling you to target customers across digital channels.

The following types of print and digital mortgage advertising campaigns can be used to generate leads, increase brand awareness and build relationships with potential borrowers.

  • Postcards – A simple and cost-effective way to reach potential clients, mortgage postcards include a personalized message, a special offer or information about your business – with a combination of immediate, eye-catching graphics and copy.
  • Self-Mailers – A more comprehensive approach than mortgage postcards, self-mailers can be used to provide potential clients with more detailed information about your business, including your services, experience and testimonials – utilizing attention-grabbing text and colorful images.
  • Personalized Letters – A personalized letter can be a great way to make a personal connection with potential clients. This type of direct mail can include a personalized message, information about your business and a special offer (e.g., promoting a local branch).
  • Firm Offer of Credit Letters – These letters target potential borrowers, letting them know that they may qualify for credit, and highlight specific mortgage products (e.g., a pre-approval based on credit profile data).
  • Direct Mail Packages – A package can include a variety of elements, such as a personalized letter, brochure, and business card, all packaged in an eye-catching envelope.
  • Referral Cards – Referral cards can be a great way to encourage your existing clients to refer their friends and family to your business. These direct mailpieces can include a referral incentive and information about your business.
  • Electronic Direct Mail (EDM) – Once just involving email marketing, EDM can also include social media marketing, SMS text messages, online ads and re-targeting. In fact, an effective mortgage EDM encompasses multiple media channels to increase the number of touchpoints and expand the opportunity for interaction and leads.
an animated image of a persons head with direct mail marketing terminology in their head

Top 4 Tips for a Successful Mortgage Direct Mail Campaign

As direct marketing rises to the top in the current digital, always-connected landscape as a preferred marketing method, it’s important to include all the essential elements into a highly targeted direct mail campaign to maximize its effectiveness. These are some tips to guide your efforts – and keep you on track: 

  1. Know Your Target Audience – Before you begin your campaign, it’s important to understand who your target audience is. This will help you determine the best approach for reaching them and ensure that your message is relevant and engaging.
  2. Make it Eye-Catching – Your direct mailpiece should be visually appealing and eye-catching. Use bright colors, bold text and high-quality images to make your message stand out – and include graphics and imagery that’s on point with the target audience so it resonates with them.
  3. Use a Strong Call-to-Action – Your mortgage postcard or mailer should include a strong call-to-action, such as an offer for a free consultation or a special promotion. This will encourage potential clients to act and reach out to you. Be sure the contact information is clear and stands out.
  4. Test Your Campaign – Before launching a full-scale direct mail campaign, it’s a good idea to test your approach with a smaller group of people. You can start with a small portion of your list and see what kind of response you receive – this response rate can be a key indicator of future success. This process also provides insight into what is working and what isn’t, allowing you to adjust as needed (before you exhaust your budget!).

Mortgage Mailing List Best Practices

Ready for fully-vetted prospect lists that include pre-screened, ready-to-act leads?

You want a direct mail partner that works with a sophisticated data provider to help you quickly identify and engage with new prospects using data acquisition technology. For the mortgage industry, this means accessing on-demand, up-to-date and relevant credit and mortgage data of potential customers. The data provider will have the capabilities to help you target your audiences based on FICO Scores, types of loans, rates, home values and more – the data that will help you reach the right prospects.   

Here are some best practices for a mortgage company using pre-screened data in their direct mail campaigns:

  • Use high-quality data
  • Personalize messages
  • Adhere to FOC guidelines
  • Use a clear call-to-action
  • Track results
  • Test and refine
  • Follow up

How Marketing Technology Can Supercharge Mortgage Marketing Campaigns

Having your direct mail campaigns run efficiently is the goal, right? Using integrated marketing technologies can enhance your efforts, helping you to effectively target, acquire and retain customers – and even market on multiple channels and automate repetitive tasks. The idea is to use technology to make your life as a marketer easier – and optimize your efforts.

Your mortgage company can use marketing technology in your mortgage advertising campaigns in several ways, including:

  • Data Management – Marketing technology can help mortgage companies collect, manage and analyze data about their target audience. This information can be used to personalize direct mailpieces, increase the relevance of the message and improve the overall effectiveness of the campaign.
  • Targeting – Marketing technology can be used to target specific groups of people based on their interests, behaviors and location. This helps ensure that the right people receive the right message, increasing the chances of success.
  • Automation – Automated direct mail campaigns can be set up using marketing technology. This means that your messages can be delivered at the right time, without any manual effort required – even complementing mailpieces with online ads across multiple channels.
  • Testing and Optimization – Marketing technology can be used to test different elements of a direct mail advertising campaign, such as the subject line, design and offer. These A/B tests allow mortgage companies to optimize their campaigns and improve their overall effectiveness.
  • Tracking and Reporting – Marketing technology can track and report on the success of a direct mail campaign, providing valuable insights into what is working and what can be improved.

By using marketing technology in your campaigns, you can improve the relevance, personalization and effectiveness of your messages. This can result in higher response rates, increased leads, and ultimately, more business for your mortgage or real estate company.

Multichannel Direct Mail Campaigns

Is a multichannel approach the best approach when it comes to direct mail for homebuyers? Yes, definitely – especially to increase your chances of converting leads into customers.

As a mortgage marketing professional, you can combine traditional direct mail with digital channels to reach potential customers through multiple touchpoints – and amplifying the results. (Sound familiar? It’s a callback to electronic direct mail.) This can include incorporating Google and social media ads, SMS messaging, mail tracking, Informed Delivery and other digital technology into a direct mail campaign. By utilizing a variety of channels and technologies, you can increase their reach, build brand awareness, and create a more personalized and integrated customer experience.

Some specific mortgage direct mail strategies for leveraging multichannel direct marketing campaigns include:

  • Delivering targeted social media ads to your mail list – before, during and after your mailing – by matching each record to their Facebook or Instagram accounts.
  • Re-targeting website visitors with Google and social ads – even if they didn’t fill out a web form or make a purchase on your website.
  • Sending SMS messages to individuals who have shown interest in the direct mail campaign to keep them updated on promotions, new products or other important information.
  • Incorporating unique QR codes or personalized URLs in direct mailpieces to track and measure response rates and direct recipients to targeted landing pages.
  • Sending follow-up emails to individuals who have responded to a mailer, offering more information or a specific call-to-action.
  • Utilizing Informed Delivery to provide your recipients with a digital preview of your direct mailpiece, so you know how many opened the daily email, previewed your mailer and clicked on your ad.

Choosing a Mortgage Direct Mail Company

It’s time to choose a direct mail provider for your mortgage communications.

The best direct marketing provider for your mortgage company will depend on your specific needs and goals. You should consider factors such as capabilities, customer service (i.e., responsiveness and availability), and overall value – not to mention experience and expertise.

Working with a reputable, all-inclusive mortgage direct mail company like FSSI Splash offer advantages, including access to high-quality data, graphic design, printing and mailing, marketing expertise, plus:

  • Sophisticated direct mail services
  • Savvy marketing and digital technology
  • Real-time data and analytics
  • One convenient, full-service location

Learn firsthand what to look for in a direct mail partner with “The Sophisticated Marketer’s Guide to Choosing a Strategic Direct mail Partner for Stellar Results.”

Reach Your Target Mortgage Audience

Are you ready to add mortgage direct mail to your marketing mix?

You can maximize the success of your campaigns by understanding the benefits and following best practices, such as targeting your audience, using a strong call-to-action, and having a follow-up plan. With its targeted approach, cost-effectiveness and measurable results, direct mail marketing will help you reach potential clients and grow your business.

Contact us today at (714) 436-3300 to learn how you can harness the power of direct mail to effectively reach your target audience and thrive.

Sources:

¹ https://www.competiscan.com/2023/01/19/2023-trends-and-predictions/
² https://www.marketreach.co.uk/blog/a-year-in-review-of-direct-mail-2022