Direct Mail Marketing for Real Estate: The Ultimate Guide | Taradel

The real estate market is known to be fiercely competitive and full of challenges. That's why top-performing real estate agents spend a great deal of time, effort, and money on brand-building marketing campaigns designed to reach buyers and sellers.

What Is Real Estate Direct Mail Marketing?

Direct mail is a marketing tactic that sends a physical mail piece (a postcard, newsletter, brochure, letter, etc.) to a specific audience. The process includes designing, printing, and distributing mail pieces via the USPS directly to a target audience (in this case, likely home buyers and sellers).

Whenever you receive a promotional postcard, coupon, or brochure in your mailbox, it's because an organization has determined that you are a good fit for their products or services. In this regard, the real estate industry doesn't differ much from other businesses. The fundamental distinction between the mailers sent by realtors compared to other advertisers, is the content. For example, a pizzeria would be very likely to mail out coupons and special offers whereas a realtor would likely promote listings, local market stats, and their personal brand.

Direct mail has evolved quite a bit over the last decade through technology that has made it is easier than ever to create data-driven campaigns and measure results. It is extremely effective when used properly which is why the direct mail industry is projected to grow to over $72B in 2023. And with so many advertisers competing for consumer attention online, direct mail marketing is a great way to stand out and add a more personal, authentic component to your strategy. 

Direct mail can be used throughout the marketing funnel, too. The marketing pieces can be customized for awareness purposes at the top of the funnel, helping prospects get acquainted with your services and personal brand. Similarly, you can mail newsletters and postcards to prospects who are more seriously considering buying or selling.

New real estate agents can also benefit from direct mail campaigns to spread the word about their services and call attention to any early successes they have in the local market.

Direct mail marketing for real estate can go a long way when used right. Let's discuss what it can do for your real estate agency.

Gain Local Connections

In real estate, lead generation is crucial to running a successful business. Don't neglect people who have just started seeking new opportunities. Market research can help you predict how real estate will change. In turn, you can provide potential clients with great offers and powerful messaging.

Showing prospective clients that you have a good familiarity with the area can go a long way. Homebuyers and agents are more likely to prefer real estate agents who know the intricacies of the local area and have proven track records.

The must-haves to create an irresistible offer are:

  • Well-written, authentic, and engaging copy
  • Strong CTA (call to action)
  • Attractive design
  • High-resolution image(s)
  • Easy response mechanism (phone, QR code, website, etc.)

Luckily, with the right technology and tools, it shouldn't take much time to design your marketing materials. Taradel's all-in-one marketing platform, for example, includes free real estate design templates (requires a free account) and helpful local marketing tools for audience targeting. Your direct mail advertisement doesn't have to cost a fortune or take hours to design.

 

Include (Local) Social Proof

Social proof is a powerful psychological phenomenon used to instill clients' trust. Most buyers look for reviews and ratings before they actually choose business partners and make purchasing decisions.

The most popular form of social proof is online reviews. Other realtors may showcase a list of renowned companies they have worked with as a reference and highlight testimonials from happy clients on their website, social media accounts, and advertisements. If you've won any local awards or associated with non-profits, charities, or reputable organizations, these affiliations can also serve as powerful social proof indicators.

Social proof matters because people base their decisions on reviews from previous clients, which helps build trust and remove friction or risk from the decision-making process. Positive feedback automatically means that the business is good. It reduces uncertainty and frees potential clients from weighing the pros and cons for an extended period of time.

The wisdom of the crowd works in such a way that the more people are satisfied with the service, the stronger trust it builds in new clients.

Negative comments work in the same way. A person would almost immediately rule out working with a realtor who has a substantial amount of poor feedback and low star ratings on the web.

Real estate agents should broadcast their success stories throughout the market via both direct mail and digital channels. Some examples include successful closings at attractive price points or helping a family find their dream home. You may also share how many homes you have sold in the area and your track record of bringing buyers to the table.

Schedule Ahead to Your Advantage

When working in real estate, you must also consider seasonal factors. The slowest months and lowest home value tend to occur during Winter, while the hottest times are typically in the Spring and Summer.

Respectively, the demand decreases from November to February and reaches its peak from May to August. Real estate investors and homebuyers are usually interested in buying properties below market value. Informing them about the expected decrease in price will entice their interest and make them get in touch with you.

Families with kids are likely to move house during the summer break. They wouldn't want to place their child in an unfamiliar environment in the middle of a year.

Real estate market changes and new trends are appearing as work-from-home flexibility and economic conditions change, so being flexible will keep your business in step with buyers and sellers.

Adjusting your direct mail marketing material at the appropriate time is also crucial to match your customers' needs. Selling or buying a house is always a well-thought-out decision and is rarely spontaneous.

Engage Clients to Build Long-Term Relationships

Thinking that each client will only purchase or sell once is the wrong mindset. One survey shows that the average American moves five times during their lifetime. Having delivered outstanding service, your clients will never forget you as a professional and trustworthy realtor.

You will become their go-to agent whenever they or their friends need to sell the property.

Direct mail opens new opportunities for any real estate business to build a large client base.

The marketing campaigns with direct mail are trackable, triggered, integrable, and more. More about it in the following section.

Benefits of Direct Mail Marketing for Real Estate

Lead generation isn't the only benefit of direct mail marketing campaigns. Other factors make it worth considering and using alongside digital marketing campaigns.

Here are some of them:

Trackability

While clicks and visits can measure your digital marketing efforts, direct mail hasn't gone far from it. It is easily tracked, especially when approached creatively. Although you send a physical real estate postcard, you can incorporate an exclusive offer like a voucher code with limited offers or a QR code.

Discount codes will be used on your website to reduce prices, while QR codes are a great idea to redirect clients to the landing page when scanned.

As for your real estate business, you could integrate the following with direct mail pieces:

  • A QR code that redirects potential clients to your website
  • A voucher code, when redeemed, for a free consultation
  • A QR code with a link to your introduction video
  • A one-time use PURL (personalized URL) for the dedicated clients only

For a better effect, don't forget to include a strong CTA (call to action) on every postcard you create.

Integrability

Throughout the guide, we have mentioned that digital marketing can be integrated with direct mail for better results. The key is to design the strategy that helps your agency stand out smartly.

Both digital and direct mail marketing are effective when used separately - however, together, they create an unbeatable combination.

Digital campaigns can reach a huge group of people located precisely where you need them. Increasing awareness and generating sales through multiple online channels is quick and effective.
Direct mail marketing, in contrast, can be highly personalized. It has a personal touch that potential clients can deeply appreciate. Instead of focusing on spreading generic advertisement to one and all, you have a chance to appeal to the area local to your business.

Competitiveness

Real estate agents invest tons of money in digital marketing. It isn't particularly a mistake - however, they risk blending in with other businesses and fading into the background. Real estate is a challenging industry. Agents with years of experience might have established their names, and freshly graduated agents might struggle to compete.

Direct mail helps new realtors get noticed in the crowd of other specialists. Since direct mail services aren't often incorporated into marketing strategies, you have ample opportunity to appeal to potential clients and be remembered.

Tangibility

Digital ads are sometimes perceived negatively, particularly marketing in social media. Social media is the least trusted among all channels.

In 2022, 42.7% of people have already installed ad-blocking software. Another 14% of Internet users plan to download it.

Direct mail works in a way that potential clients receive physical marketing material straight to their doors. They can touch it, put it on a fridge, or pass it to someone else.

What real estate marketers achieve here is a successfully delivered message to the target audience. Having a concise, comprehensive, and creative postcard also increases your chances of being remembered.

Personalization

According to a study conducted by Infosys:

  • 31% of consumers surveyed want to have a more personalized experience;
  • 20% of the responders stated they have never encountered a personalized offer;
  • 67% of consumers positively support the idea of personalized offers;
  • 59% of those who participated in the study believe personalization positively influences their purchasing decision.

Based on the data, personalizing real estate marketing campaigns is likely to appeal to clients and persuade them to use your services. If you correctly identify their needs, you can accurately prepare an attractive offer.

As an example, your direct mail piece for real estate offer could include an exclusive free consultation for the area you are targeting.

What Must Real Estate Agents Consider When Planning a Direct Mail Marketing Campaign?

Your direct mail will change alongside clients' needs and seasonality. Planning will keep your head cool and mind clear. Every time you sit to plan your next direct mail campaign, consider these:

Budget - Set a budget that you can afford to spend on your campaign.

Marketing approach - Determine whether you use only direct mail marketing or if you want to incorporate it with digital advertisement.

Campaign testing - Once you launch a campaign, track how effective it is (how many calls you get, emails, visits).

Tracking - Decide how you plan on tracking the progress of direct mail campaigns. You could incorporate a one-time-use link, a QR code, or an exclusive voucher.

Types of Mail Pieces Used by Successful Direct Mail Marketers

The direct mail piece is your business card. Prospective clients will keep it and use it when they decide to sell or buy property.

Your marketing piece has an influence on their decision, especially if you establish yourself as a real estate agent who can find an irresistible deal or sell quickly.

Real estate direct mail can be:

  • Real estate postcards - A real estate postcard is a colorful and concise mail piece that has just enough information about you and your business and eye-catching images or photos;
  • Brochures - Real estate brochures are bigger in size; however, no less appealing than postcards. They contain more text and more images. It is a good mail piece to tell people more about yourself, your company, and your achievements in real estate.
  • Letters - Real estate letters may be less common; however, they can be quite useful, too. Perhaps, sending letters to existing clients would be a better idea than gathering leads. You can also highly customize each letter with a personal touch for each client you work with.
  • Personalized gifts - Gifts aren't exactly designed to generate sales. During the slower period, sending small presents (e.g., pens, calendars, notebooks) will definitely leave an impression on your clients.

    Other direct mail types to consider include:

  • Catalogs (e.g., available deals or future properties);
  • Intelligent documents (e.g., containing vital real estate related information).

How to Create Direct Mail the Right Way

You don't have to be a graphic designer to create an eye-catching mail piece. To make your offer irresistible, you need to remember the following:

  • Concise and captivating headline - Your headline should be captivating. Come up with a clear and catchy phrase that will persuade potential clients to use your services.
  • High-quality images - You may have a compelling design but blurred or irrelevant images. If you cannot find a proper photo, consider purchasing one.
  • Tempting offer - Your mailing piece should have a reason for people to keep it. It could be a piece of useful information, a limited offer, a free gift, or anything else.
  • Strong call to action - Your direct mail piece should always include a call to action. Ask them to use the exclusive voucher, go to your website, or arrange a consultation with you. Keep it short and right to the point.

How Big a Budget Should You Allocate for Direct Mail Campaigns?

The final price of the direct mail campaign will depend on:

  • Quantity
  • Mail format (postcard, large brochure, etc.)
  • Printing costs
  • Creative / design costs
  • Method: EDDM (mail entire neighborhoods) vs. Personalized Mail (mail using a list)
  • Postage

Taradel offers both Personalized Mail (mail to each person on a list) and Every Door Direct Mail (mail to every residential address in neighborhoods). You can choose to target specific demographics or build awareness among residents across entire communities. Both methods come in multiple sizes, so you can choose which dimension fits your design and budget from there.

Since Personalized Mail pieces are specifically designed for a small group of prospects, the minimum quantity is 50.

On the other hand, Every Door Direct Mail targets a wider group of people (neighborhoods, ZIP Codes, etc.) and are sent en masse. The minimum quantity for EDDM is 1,000 pieces.

There is no mailing list cost associated with EDDM because the USPS delivers to "every home" in your target market. However, Personalized Mail changes in price depending on whether the mailing list is yours or if you need to purchase one from Taradel, for example, or a different vendor. This determination will impact your total cost. 

Regardless of the method you choose, it can take anywhere from 1 to 3 weeks from the order date to reach your potential clients. 

Another price factor is design. Taradel has an intuitive and free-of-charge platform where you can create your direct mail pieces. However, if you want to receive a professionally crafted mail piece, hiring a creative experts may be a great option. With your direct mail purchase, Taradel offers discounted professional design service rates for as little as $100 — which is a steal for the agency-quality results you can achieve.

Five Direct Mail Marketing Tips from Real Estate Professionals

It's no secret that the majority of real estate agents use and love direct mail. From community newsletters to new listing postcards, there's no shortage of success stories within industry circles.

Here are a few direct mail tips from successful realtors:

Identify and Target Your Intended Audience

As a real estate agent, you are likely to work in several market areas, and won't possibly be able to be present everywhere. Thus, you should narrow your search down to a specific territory or key demographic. 

Knowing your audience will help you customize your direct mail and save you money. You save money on designing your marketing strategy only for a relevant group of people.

Otherwise, targeting those who aren't interested in your services will make your campaign wasteful.
Real estate agents ask themselves:

  • Who am I trying to reach (e.g., investors, first-time buyers, luxury buyers, etc.)?
  • What should their income level be?
  • What property would they be interested in (e.g., apartments, houses, villas, etc.)?

Great timing is great for sales

Earlier, we mentioned the seasonality of real estate where some months trend slower and others are packed with opportunity.

The calmer season starts in November and lasts until February. At the beginning of March, however, buyers and sellers tend to ramp up activity. Summer months are the most active of all, especially for families with children.

Adjusting your campaign accordingly will reach prospective buyers and sellers at the right time. For example, you can start your direct mail campaign in mid-February, right before the spike in sales activity kicks in.

Meanwhile, in slower months, prioritize improving your brand awareness and growing your client base. Get in front of as many buyers and sellers as possible and start building your pipeline for the Spring and Summer.

Be Consistent

Real estate direct mail campaigns need sufficient reach and frequency to make an impact. Do not go into your direct mail campaign thinkin that a one-time postcard marketing campaign will solve everything. As with all marketing, you have to be consistent and reach your target audience again and again (and again!) to drive results. It works, but you've got to stick to the plan!

Ideally, your audience should receive one direct mail piece a month. It's the golden line between wastefulness and helpfulness. Deliver value and be consistent with your messaging.

Conversely, you might find it effective to send marketing pieces more often during busier months based on activity levels and transactions. Eventually, you will find what works best for you through trial and error.

Track the Response Rate

Tracking the response rate will show you whether your direct mail campaign brings the desired results.

Earlier, we discussed how to integrate a digital channel with direct mail, which can be one way to track progress. You only need to add a campaign-specific link, call tracking phone number, QR code, or unique CTA to track response. 

The Final Word

Direct mail campaigns are quick and easy to plan and offer a powerful, hands-on impression that is difficult for home buyers and sellers to ignore. Unlike digital ads, direct mail gives recipients a moment to pause and consider your services, without any beeps, next clicks, or distractions built-in to the advertising channel.

If you'd like to learn more about real estate direct mail, don't hesitate to contact Taradel. Our friendly team of marketing experts has helped thousands of realtors across the U.S. grow their businesses and build brands.

Remember, what you do today determines what you sell tomorrow!

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