| THE DIRECT MAIL PATH TO CLIENT RETENTION |
| Client retention is key to success. Existing clients are a viable source of repeat business—and that business comes in at a much lower marketing cost since you don’t have to spend money to find those customers and tell them what you do. Even if past clients aren’t ready to engage you again, they can be a valuable source of referrals—and the prospects existing clients bring you are better than cold leads. They’re likely to be pre-disposed to working with you because they know the people who are referring you. To keep clients buying from you and referring new customers, you need to build long-term relationships. Loyalty doesn’t magically appear out of nowhere. You have to cultivate it, and that means marketing. Today, brand communications are dominated by all manner of digital marketing channels—websites, social media, blogs, YouTube videos, and emails. Yet traditional direct mailing can still be a powerful way to engage a key audience. |
| What Is Direct Mail? Direct mail is a marketing strategy that involves sending a physical letter, postcard, coupon, newsletter, mailer, brochure, catalog, or packaged gift to people you want to influence. The direct mail piece contains information about your products or services and a strong call-to-action (CTA). Your mailing list is free—it’s the customer list you already own. Plus, you can send your customers mailings without first getting their permission, unlike emails where the recipient has to first opt in to receive your messages. |
| What Are Direct Mail’s Strengths? Direct mail has a better response rate than email, its closest digital competitor. According to the Direct Marketing Association, direct mail’s overall response rate is 4.4%, compared to a miniscule 0.12% for email. The response rate for in-house lists, such as your customers, was 9% in 2018. People actually like direct mail. One study reports that 76% of people trust ads they receive in the mail. Four in 10 people say they have an “emotional connection” to checking their physical mailbox to see if they got anything interesting. Few people feel that way about checking their email inbox, with an average of 121 emails a day. Direct mail can create a deeper connection with customers than email. Content can be readily personalized and focused on a specific need. You can also quickly and easily measure results, based on phone inquiries, returned reply cards, or redeemed coupons, without dealing with complicated analytics tools to compare the effectiveness of keywords or monitor click-throughs to landing pages. |
| What About Cost? A direct mail campaign does cost more than an email campaign. You have to produce the piece you’re mailing and then pay for the postage. Click here for information on volume discounts available from both the USPS and shipping consolidator platforms. Typical production costs can come in at 30 cents to $10 or more per recipient, ranging from a postcard to a dimensional gift. |
| Let Your Imagination Run Free. There’s almost no limit to what you can direct mail customers. Discount coupons are great, but unexpected items can work especially well—gift cards to coffee shops, brand swag, and creative gifts that connect to your brand. |
The Jim Passi Team at Citywide Home Loans proudly serves Illinois, Wisconsin, Michigan, Indiana, Georgia and Flordia. If you are looking to buy a home or refinance, we have you covered. Apply Now to get started.
