It’s been said that direct mail is dead, and to that, we say, “Hardly!” Mortgage direct mail is still a marketing force to be reckoned with for a number of reasons. Below we identify why mortgage direct mail is still a great investment for aspiring mortgage lenders:
- Physical Mail Conveys Legitimacy. If you’ve checked your email spam folder recently, you’re already well-aware that any fly-by-night operation can put together an email. Mortgage direct mail, on the other hand, conveys a sense of legitimacy and credibility that just can’t be matched by other marketing mediums. This is especially important in the mortgage industry where legitimacy is a top concern among prospective clients.
- Direct Mail Has Higher Response Rates than Email. Direct mail is shown to consistently outperform email by a substantial margin. According to the Direct Marketing Association (DMA), direct mail has a 4.4% response rate compared to email’s response rate of just .12%.
- Direct Mail is the Preferred Marketing Medium of Millennials. For mortgage lenders, millennials make an excellent target market; those people who are between the ages of 18 and 34 are highly likely to be in the market to become first-time homebuyers. While it’s tempting to assume that millennials prefer digital marketing, research doesn’t back that up. Actually, statistics show that 75% of millennials find the mail they receive to be invaluable, 92% are influenced by direct mail to make purchasing decisions, and 90% said that they prefer marketing communications to occur via postal delivery.
- Direct Mail Lasts. Unlike other forms of marketing, mortgage direct mail tends to hang around. Whereas marketing emails are often deleted immediately, the tangible quality of direct mail means that it will often remain in plain sight of the recipient for a long time, making it more likely to leave an impression.