Increasing Response Rate
There has been a great deal of literature written on how to increase the response rate on mailings which ordinarily is pretty low (about 1-2% is common).
Anyone have any knowledge (not just opinions) of how to increase one's response rate? I generally use a postcard for my first mailer followed up by a letter the following month. Anyone know what colors work best? Font type? Font size? Glossy paper? Logo, no logo?
I know this might sound silly, but there is actually a great deal of marketing research out there on the topic. Any direct mail people out there???
I'd like to get it up to about 3-4% or better if possible.
J
aah.. i have been there - done that. i feel your pain. i have always been able to get my 1-2%, even if the copy and mail piece are only semi-professional. in fact, it doesn't seem to make much of a difference either way. My father used to run a company with a market valuation of 350 million and he drove a ford festiva. he was deemed more trustworthy with other peoples money when he didn't spend an arm and a leg on the newest and greatest technology. the same applies to most forms of marketing. most large corporations spend millions on advertising because they have the money to spend. if they don't spend it, they lose it. simple as that. you aren't in the same position.
maybe, just maybe 1-2% is good enough. at .45-50 cents a mail piece (and if you are paying more than that, find a cheaper source). if you mail out 3000 mail pieces, you will recieve 30-60 responses. maybe you close 4 of those deals and make 2-5k on each. was your initial $1500 worth the investment? what if you only close 2 deals?
focus more on your selling ability instead of the volume of response that you get. dont make fraudulent offers. STAY AWAY from the astericks ( * is a big no no for trust). don't use cleverly worded freebies or giveaways. you are selling yourself as a professional business. not a timeshare or local pizza house. you need to gain their trust from the get go. if only 10 people call you from a letter that almost completely ensures that anybody who is responsive also finds your style comfortable, then you are set.
be yourself in the mailing. if you want to do a personalized campaign, sign every letter. you want more people to open up your mail piece? sign every single letter (or pay somebody to do it) and write out the address by hand. im serious about this. you'll get 100% open rate if you do this. maybe your response rate of 1-2% comes from a 20% open rate. with that math, your response rate would increase by at least 5 fold, right? insead of 30-60 people you'll have your hands full with 150-300 people. if you can't handle that, then send out only 600 mail pieces (hand signed and addressed) for your 30-60 responses. they'll appreciate the time that you put into pitching your services.
Thanks Milliken for your insight. Its is sincerely appreciated. I agree that we won't get all of them (I couldn't handle it if I did) but I have closed on every one that has responded (I guess thats a 100% success rate). Thanks again.
J
Tip: Hand Written Letters are opened 50% more of the time.
Reasons: It doesn't look like "Junk Mail", and it gives a personal touch.
Increasing Response Rate:
Use black ink on Yellow letter-size paper for your flyers. Send them out as one of your mailouts after a postcard mailout. Also, place them EVERYWHERE-on bulletin boards in stores, etc.
On EVERYTHING you send out, state BENEFITS first-BENEFITS first!! Don't EVER forget this. For instance:
'Need To Sell Your House Quickly?'
We offer Solutions to your real estate problems.
(Then tell them about your service
We are private real estate investors looking to buy houses for CASH. THen add whatever else you like.
Avoid using 'I' as much as possible. Remember, they want to know what you can do for THEM.
I have read that you should mailout 5 to 7 times before a prospect will respond. Space the mailouts 7 to 10 days apart.
Hand written envelopes are a MUST! Also a hand written signature in BLUE ink is a good idea.
Hope this helps. Anyone else have an idea or 3?
All the best, Julie
This is one of the best discussions. I have learned so much. Thank you.
What type of prospect are you all mailing to?
And where is the best place to get leads of motivated sellers?
Hi Mary Jane,
I place ads in our local 'Quik Quarter' weekly newspaper in the 'Houses for Sale'; Houses For Rent; and Investment properties. My ad reads:
Cash for Your House
Any Condition
Quick Closing.
No Equity? No Problem.
Call Reagan @ 123-1231
I use a border around the ad; center each line and BOLD each line.
Am getting 3 calls a day. Made offers on 2 this week!
This newspaper is like a 'Penny Saver' or Thrifty Nickel.
Good hunting! JMR