5 Mistakes Mortgage Lenders Can’t Afford to Make With Their Direct Mail

For mortgage lenders, the benefits of direct mail are astounding. Direct mail provides one of the fastest and most effective ways to reach your target audience, offers a high ROI, and is a simple way to promote your company. It is also a popular marketing method as more than 98% of consumers gather their mail every single day.

However, for mortgage lenders to generate leads and see these benefits, they must be smart about their direct mail. Small mistakes can cost many valuable leads.

Here are just five mistakes that mortgage lenders can’t afford to make with their direct mail campaign.

1. Your Targeted Audience Is Incorrect

One of the most important steps when it comes to marketing and promoting your company is to target the right audience. When you don’t spend the time to target the right group of people, your efforts will be worthless. Spend time determining exactly who it is you want to reach and choose mailing lists that best focus on these households. As you do this, make certain that your mailing lists are up-to-date and the information you are using is correct and current.

2. There’s No Purpose to Your Mail

Why are you sending the mailer? What is its purpose? You must ensure that every piece of direct mail that you send has a clear and compelling purpose. There needs to be a reason for individuals to call and talk to you. If you are simply sending a mailer with a list of your services, most readers won’t care.

But if you send a mailer highlighting your competitive advantage or how you differentiate yourself from other lending officers, this can capture their attention and give them a reason to reach out.

3. It’s Boring

While content is crucial regardless of your marketing campaign, so is the look of your mailer. Studies show that individuals only retain 10% of the information that they hear and 20% of the information that they read, but they will retain up to 80% of the information that they see.

This means that you want to keep all of your mailers visual, exciting, and professional. If you aren’t creative or have little design experience, work with professionals to help you create a mailer that will easily capture the attention of your audience.

4. Your Mailer Lacks Personalization

Your mailers should be personalized. They must address a need, a concern, or a problem for the recipient. Approximately 69% of people feel that direct mail is more personalized than any email or internet ad. This means you have ample freedom to truly connect and relate to your audience.

Make each letter offer some personalization to it. For example, include names and addresses, not just state “current resident.” Use phrases such as “(insert first name), check out these astonishing rates!”  

5. You Don’t Test Your Direct Mail

Are you receiving many responses from your direct mail campaign? Or, have you heard very little? If your previous mailers have generated a substantial amount of leads, you want to make very small changes and continue with them. But, keep in mind that many individuals are not looking for purchase transactions, they are looking to refinance. If they are pleased with your past service, they will utilize your service again. This means that reaching out with direct mail with information about lower rates or new programs is an excellent way to increase your business.

If you have heard very little from your audience, it may be time to toss it out and start all over. Pay attention to how well your various campaigns — whether targeting new leads or past ones — are doing and make future marketing decisions based on the data you receive.

Purchasing a home is a complex and overwhelming process for many buyers. They will have a mortgage payment for years to come so it is important to them that they work with a company that they trust, who has the most competitive rates, and more. By avoiding the above direct mail mistakes, you can show these individuals what makes you the best and how you stand out from other local lenders.  Contact us today and let us help you create a successful direct mail campaign.

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