What is Direct Response Marketing for Real Estate?
It is a real estate marketing strategy also known as direct mail marketing for real estate. The purpose of this approach is to secure immediate reactions by encouraging prospects to yield to a specific action through direct response marketing. The campaign focuses on a specified locality.
Direct response marketing enables realtors to receive rapid feedback as a result of their advertising efforts. It is a quick way for real estate agents to monitor returns on investments. (ROI)
How Does a Direct Response Marketing Strategy Work?
This marketing tool is easy to use by any business type, whether small or big. There are four steps you can take to help you launch a successful direct response campaign.
Step 1:
You can create an irresistible offer that includes some of the following;
- Market Facts & Statistics – Create a brief report on your real estate business that comprises statistics and price comparisons. Furthermore, you need to ensure that the information you provide is verifiable and meaningful to buyers and sellers.
- Sale Prices – Investors in real estate are keen to have this information readily available. This data helps home-buyers compare and research similar properties. You must include the sale price and other related costs where applicable.
- What does the buyer need to know? – For example, you will want to know about the local regulations concerning rentals. Information about termite infestations within the locality and septic tank system would also benefit both buyers and sellers.
Step 2
Create a unique landing page that allows your prospects to take advantage of the opportunities indicated in your campaign.
Additionally, give your page a name that is easy to remember or one that indicates the product opportunities you are offering as a result of a specific campaign.
Of course, it is critical to provide an option for page visitors to register to enable you to send further communication to them.
Step 3
Promote the offer – Advertise your brand and let the people know what you are offering. You can use different channels such as; –
- Postcards – These mailers must be brief and straight to the point. Your message must remain focused on promoting your special and how to get it.
- Social media – Create a compelling advert for prospects viewing your social media accounts to benefit from your offer. Remember to add a link to take them to your website.
- Your website – You can also use your website to promote your offer and add a call-to-action prompt that directs visitors to the offer page.
Step 4
Track the results of your direct response marketing strategy. For example, you can use the analytics tool to help you ascertain how many prospects visited your page due to your direct response marketing campaign.
You can change the offer and other benefits if you do not get your expected responses. You may also consider altering your call-to-action wording to see how the results change.
How Can Your Real Estate Business Benefit from Direct Response Marketing?
Direct response marketing is an effective tool and can bring numerous benefits to your business when used appropriately.
It is one of the oldest means advertisers and real estate agents use to acquire prospects locally in a few days.
To fully appreciate how your business can profit from this strategy, we shall look at both the pros and cons of direct response marketing.
Merits of Direct Response Marketing Campaigns
Accuracy
Direct response marketing offers advertisers detailed response information. This accurate data shows you the number of consumers your advertising has reached and how they get influenced. In addition, this marketing strategy allows you to know how or not your campaign was successful.
Direct channel of communication
A successful direct response marketing campaign attracts prospects who need more information or those willing to communicate with you. Real estate agents find developing customer relations with prospects who contact them due to a campaign more effortless. Additionally, you spend less time closing sales deals with the clients you acquire from direct response marketing.
Track and Measure
Return on investment largely depends on the figures and statistics derived from marketing and advertising. You need to know how many leads and potential customers contact you as a result of each campaign. Direct response marketing has integrated tools that enable real estate agents to identify prospects with specific ads.
Cost-Effective
Direct response marketing for real estate agents reduces your advertising and sales-related costs. You can launch a successful campaign with the help of one assistant, a computer, and a printer. You can design your marketing materials with minimal overheads, or you may prefer to send your work to a professional printing service provider at a small fee.
When you spend less on your advertisements, you can expect high ROI from a direct response marketing campaign even if the feedback rate is low.
Classify Potential Prospects
Sometimes, real estate agents may feel frustrated and somewhat dispirited when going after cold leads. Prospecting to consumers who are not ready to buy can feel like you are chasing the wind. However, direct response marketing opt-in tools forward to your link prospects who want to know more about your brand. This strategy enables your sales team to focus on converting potential leads to sales.
Provides Specific Product Information
Direct response marketing allows you to present your brand in a way that connects with your prospects. It also allows you to deliver your targeted sales deal and promotions in a way that prompts people to consider your proposition. Furthermore, you can present your campaign in a conducive environment such as home or office where your prospects can give feedback.
Demerits of Direct Response Marketing Campaigns
It is Intrusive
Some consumers may feel that direct response marketing is a strategy you deploy to coerce them to purchase something they do not need. However, a poorly designed campaign can cause negative experiences among a selected group of people.
It Targets Many People Who Have No Interest
Most of the time, the direct response marketing strategy is very successful, and you can get potential clients from this campaign. However, you may also end up delivering your advertisement to individuals who are not interested in your product. For example, consumers may flash your direct marketing email piece as junk or spam. In addition, some people will throw away your catalogs or newsletters without reading or responding to you.
This strategy can yield law returns and may seem like a waste of money, time, and resources.
It Takes Up a Lot of Time
Creating customized messages for your direct response strategy is a good idea. However, you can spend hours making phone calls or writing to each individual you are contacting on your mailing list. Furthermore, it also takes several months to build trust. So, of course, you will find yourself spending most of your time crafting messages or building trust and little time closing sales deals.
What Direct Response Strategies Can Real Estate Agents Use?
There are various channels for direct response marketing that the real estate industry can use. Some of the widely used mediums include direct mail and billboards.
Direct mail, direct response marketing
Regardless of the digital age influence among consumers, most people still look forward to receiving physical mail.
You can take advantage of this consumer psychology aspect to create memorable and convincing marketing mailers that invite your respondents to take action. Some of the direct mail marketing ideas real estate agents can use include: –
- Postcards
- Newsletters
- Handwritten letters
- Branded magazines
Postcards, direct response marketing
You can use postcards if you are looking for a relatively inexpensive direct response marketing strategy. Even startups and small enterprises find this marketing toll effective and economical.
Furthermore, an eye-catching postcard will get the attention of your prospect above other mail. Unlike a letter hidden in an envelope, your message is in open view at a glance, and it is visible to your potential customer immediately.
Here is some of what you should include on your postcard to ensure that prospects do not ignore your marketing message.
Call to action , direct response marketing
What is your expectation once your prospects receive your card? Ensure that you make it easy for your potential leads to do what you want them to after reading your marketing message. Of course, this statement should be the backbone of the other elements on your postcard.
Include your branding
Don’t just paste pictures on your postcard. Your design must remain consistent with your official logo, photo, and contact information.
Images
What first impression do you want to leave with your prospect? Your postcards must have high-quality visual effects that will draw your potential customers’ attention. A professional photographer can provide photos that make your customers look at your postcard more than one time.
Quality card stock
Remember that real estate is not cheap, so don’t advertise it on low-quality paper. Instead, you may consider using gloss or matte types of printing paper.
Display photos in different seasons
Think about the season and how your real estate appears at various times of the year. Let your photographer capture the blooming gardens during springtime, snowy rooftops, and the colorful trees in the winter season.
When you decide to use postcards for your marketing campaign, you may want to consider professional postcard services to help you print your customized mail pieces.
Newsletters, direct response marketing
Over the years, real estate agents and other businesses have used newsletters as their marketing campaign tools. In the olden days, these mailers were dull, boring, and written in black and white. But with modern technology, the face of newsletters has changed, and this channel of direct response marketing is more effective now than it was then.
Here is what you can consider when designing a professional-looking newsletter:
Provide valuable information
An effective newsletter should include information that will help your audience solve some of their current issues. You may have to research your customer to know their needs and desires.
Ideally, your marketing campaign must contain the interests of your audience. However, you may also consider including the problems they have and the goals they want to achieve.
Create a title that relates to a problem
For example, your newsletter can include words like real estate, property, homeowners, and the name of your locality.
Easy to read
Ensure that your newsletter includes blank spaces between sections and lines for easy readability.
Short paragraphs, sentences, and bullet lists are ideal when writing a list. Your newsletter will be more readable if you also include quality images.
Handwritten letters
The emergence of emails and other means of electronic messaging has rendered letters, especially the handwritten type, a thing of the past. Even so, most Americans prefer to read physical letters, memos, newsletters other than electronic messaging.
What is so special about a handwritten letter? It shows that a real estate agent sat down, took a pen and paper, and spent time writing exclusively to you. Can you imagine creating about 500 handwritten letters for a marketing campaign? This selfless effort by real estate agents shows their dedication and commitment to give home buyers a personal sales experience.
Some tips to consider when writing a handwritten letter include the following:
Know your customers
Like newsletters, you must address the needs and values of your clients.
Draw their attention – think about a captivating phrase or slogan that connects with your audience.
Highlight the benefits – What are you offering differently than your competitors? Expand on what benefits your prospects will receive out of doing business with your company.
Short paragraph – You will need to get straight to the point if you have decided to write a short letter. This type of direct mail can have only one paragraph, which compels your audience to call you.
Branded magazines, direct response marketing
Reliable research indicates that American citizens who read magazines increase every year. For example, it shows that in 2019, the total number of people who read magazines totaled 2287.7 million. This figure is higher than that of 218 by 4 million.
Additionally, the current pandemic has created a rise in magazine consumers.
Here are some of the ideas you can include in your magazine:
Articles – Incorporate articles and write valuable information about topics such as gardening, talk about gardening, recipes, health, lifestyle, and more.
Visual effects – Quality pictures make a good impression. You may want to consider a professional photographer to help you with your photography needs.
Quality paper – Remember that you are not publishing an ordinary magazine but selling your brand idea. Using quality paper ensures that your prospects can read your mail piece more than once.
Brand your magazine – Ensure that you label your magazine with logos and pictures which identify your brand or service.
Billboards, direct response marketing
Billboard is a channel of direct response marketing strategy that uses large posters. It targets commuters and other people who drive past your billboard. Professional printing services can create billboards that speak to your prospects from miles away.
Here are some of what you can consider when using this direct marketing tool.
Contact -For the best results, you may have to consider including an easy-to-remember landing page or telephone number.
Location – When putting up a billboard, you must ensure that you place your billboard at the most strategic place where a large audience can read and see.
Conclusion
Direct response marketing for real estate agents is an effective campaign tool if you use it properly. The secret to a successful direct mail campaign is sending marketing messages that your prospects want. Moreover, you must use quality visuals and paper.
Finally, you must remember to include a call to action, whether you decide to use postcards, letters, magazines, or a newsletter. You must ensure that you direct your prospects to your unique landing page that includes the brand opportunities you are offering.
