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Tips: It is easy to determine how much to spend on direct mail to homeowners if you know approximately what range of response you will receive based on previous mailings, however, most marketers that are promoting to homeowners through lead lists are just starting. This is where we can help, Vanzan Incorporated Consultants spend millions of dollars per year on marketing and the resulting data is priceless.
You know where you priced your product or service and you know how much of that is profit; so you can calculate based on profit per sale and anticipated sales per thousand mail pieces to know how much you can afford to spend.
If the mailing list you use is available on a floppy and you personalize the mailing with a word processing system or at a letter shop, it will consume a lot of your time and money and is not really cost effective for mailings of less than 5000. One hidden expense takes place when your direct mail reaches a business address only to sit on the desk of an undecided secretary, here it is wise to make your mail piece look like personal communication from one business executive to another, you might use high quality paper, and a postage stamp instead of an indicia or postage meter, mailing it first class instead of bulk third class.
For debt mailing results within a good time frame you might limit on your offer, sort of a special promotion that will expire. It is also financially sound to limit your mailings so that you don't produce more leads than your sales office can take care of, for example if your response rate is two percent you might generate twenty leads per month from one thousand direct mail pieces, this might be perfect to keep a full time sales person busy if selling your product requires a lot of customer contact.
You can mix things up in your testing and still be true to a competent budget. If you are mailing to many thousands of people because you want quantity over quality you may be limited by budget to a one page sales letter or simple three fold pamphlet, but if you decide to segment a small portion of these people maybe ten percent and send them a more elaborate version of your package you can test to see if they represent a greater potential dollar volume of sales.
When you pre-qualify a direct mail prospect before you even market to them, you are doing a service to your bottom line, a reply card that outlines the offer and asks for a response is doing half the job of qualifying your client base, it should be specific to your deal. If gathering detailed information is a primary goal you might do well to consider sending a direct mail piece in the form of a survey or questionnaire, here responses of 20 to 30 percent can be expected. It is cost efficient to keep it short, with a maximum of two sides of a single 8 and a half by sheet of multiple choice questions in preference to a fill-in essay format, send this out with a business reply envelope and it can be a priceless targeting tool for your advertising dollar.
Be clever with your mortgage marketing. Call a consultant today to see if your company can start using Credit Filtered Marketing lists today! (800) 884-8323
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