Why Some Mortgage Direct Mail Campaigns Flop
Why Some Mortgage Direct Mail Campaigns Flop,.... and What to Do Differently
It's widely known throughout the mortgage industry that one of the most effective ways to generate new leads is through mortgage direct mail campaigns. That said, success rates are far from assured. Mortgage companies often allocate tens of thousands of dollars in their advertising budgets toward well-produced mortgage letters, mortgage mailers, refinancing mailings and the like—only to have the entire campaign fall far short of expectations for lead generation. Let's explore some common reasons why certain mortgage direct mail campaigns fail—and more importantly, what do to differently to improve success rates.
Not Aiming at a Specific Targeted Mailing List For Your Mailer Campaign
Many mortgage companies simply canvas entire neighborhoods with their mortgage mailers, somehow believing everyone in that neighborhood is within their target demographic or wants to buy a home. The fact is, neighborhoods contain a wide diversity of people; not everyone is in a position to buy, not everyone wants to upgrade, and not everyone would even qualify.
What to do differently: Invest in a targeted direct mail list. In today's digital age, we can be laser-focused in finding a target market. A good direct mail marketing service can segment lists by age, family size, income bracket, credit score and other factors to ensure you're only aiming your direct mail campaign at people likely to need a mortgage in the next year.
Poorly Written Content in your Direct Mail Letter
Even if you find the right target market, if you send them a real estate postcard mailer or mortgage letter that has boring copy, you're wasting your money.
What to do differently: Be sure to devote some of your advertising budget toward high quality marketing copy and attention- grabbing designs.
Important Tips for Crafting Great Copy in Mortgage Mail Marketing Campaigns
• Headlines are king. Your headline should immediately touch one or more "pain points" your customers may be experiencing and offer a solution. (E.g., "Think you can't qualify for a loan? Think again!" "Ten pain-free minutes to qualify for your dream home.")
• Tell them how you'll solve their problem. Under the headline, you have just a few lines to educated customers on how your mortgage company offers the best/cheapest/fastest solution compared to the rest. Highlight your Unique Selling Proposition (USP)—that one thing that makes you stand out from the competition.
• Focus on benefits, not features. Don't waste time listing the features of your mortgage products or the reasons you're the best. Tell the customer how you'll make their life better. (Make it about them, not you.)
Failing to Make a Clear and Compelling Offer in Your Marketing Mailer Piece
For the average homebuyer, getting a mortgage is a little like going to the dentist—a necessary process, but not something they particularly enjoy. To get people to work with you instead 
of someone else, you must give them a compelling reason. Many mortgage companies fail to realize this when creating their mortgage mailers. A bland call to action like "Call today for a free consultation" is a waste of ink because the customer has no reason to think that offer is better than any other.
What to do differently: To increase your response rates exponentially, make your prospects an offer they'd be foolish to pass up. Examples might be, "Close in 20 days or we pay up to half your closing costs," "We'll beat our competitor's rates or we'll give you $1,000" or "One year of free lawn care for the first 20 applicants." Make your offer as compelling as possible and see how many more people respond.
Failing to Test (and Retest) Their Mailers
Direct mail marketing is a dynamic art, and even when you think you have a mailer with a good response rate, it may fall flat by the third mailing or when sent to a different neighborhood. Many mortgage companies leave thousands of dollars of business on the table simply because their current mailer does "just fine," but by testing and retesting different elements (like different wording or different calls to action), they could do so much better.
What to do differently: Never be content with your results. Do A/B testing on your mortgage mailers every chance you get in order to improve response rates. If you don't have the time or energy to invest in this process, some of the best direct mail companies can help you devise a pain-free system for testing.
Start Your Mortgage Mail Marketing Campaign
We specialize in helping mortgage companies maximize their results through targeted mailing lists, custom postcard printing and other direct mailing services. To learn more, call us today at (916) 296-0545.
