When to know that a direct mail campaign is not working

Question

I've been running a hand addressed envelope with a first class postage mailing campaign to probates for the last 3 months. I've sent out about 1105 pieces with 1/2 of those being a 2nd or 3rd mailing. I've  only received 8 responses. That is less than a 1% return. I've made one offer and the heir decided to list the house in the MLS instead for more money than what I had offered.

A year and half ago using the same envelope, letter and source for the list I would had received about 5 responses per every 200 mailings. I also have purchased a handful of probates in the past with great success. So I was optimistic going in and picking up the on the same mailing campaign.  While I am accepting that the market might be more competitive today than 18 months ago I am starting to wonder if I should just keep mailing the existing campaign or look for something that might bring a better return on investment. I am not normally not one that would bail on the first sign of adversity but I still want to be prudent with my hard earned money. What do you think ?

Thank you for your response

Jerry Puckett · Answer

@George Rodriguez I add to my list monthly. I am able to pull my records through a backdoor at the County's website, though it is still a time consuming task. I average about 75 leads for the combined 4 counties I work in per month. But here's what I do differently. I season those leads and wait 4 to 6 months before sending the first letter.

Most folks send a letter the same week letters testamentary are issued, then a second, and maybe a third, then they're done. That's why your administrator was sorting through 25 letters. The probate process can take a very long time to go through. I start mailing about the time everyone else has dropped off, and continue mailing up to 18 months out.

The people who call me have had a chance to turn the corner on grief and pain, and most realize they MUST do something with this house. I add value in several ways including estate sales and tax write offs so they can deal with their loved one's things in a guilt free manner, but I always ask, "why did you call me?" The inevitable answer is "You were the only one still interested". I'm not one of 25 or even one of six.....I'm the last man standing and understand the problems they face.

Give it a shot. You have the data. Try resuming mail to an older list and see if your results are similar. It took me a long time to find the sweet spot.

@Avery Gilmer @Jazmine Bryant;  Low financial stability score lists can be found in any white labeled infobase product. Click2mail and listability have very good ones at a lower cost than many "specialists" here who simply rebrand and sell the same information.

Mark Pedroza · Answer

The PR (Personal Representative) decided to list the house on the MLS. The PR is the decision maker. Re-send again until you get a response. "Not interested in selling" "Not for sale" "Stop mailing me!", etc.

Are you also following up with a phone call?

Avery Gilmer · Answer

@May Emery where do you find owners with a low financial stability score? What company provides that type of list?

May Emery · Answer

@Avery Gilmer Mixing up mailing lists can help. It's true that Absentee Owners get a LOT of offers in the mail. Other groups such as Owners with Low Financial Stability Scores are proving effective since they have motivation and aren't getting over-mailed.

Avery Gilmer · Answer

@George Rodriguez times have definitely changed when it comes to direct mail. You would have to spend lots of money now just to get a good response rate since so many homeowners get tons of letters every week. I wouldn’t give up on probates but I would also add other leads like back taxes, code vios etc

George Rodriguez · Answer

@Jerry Puckett I've been adding to the list every other week when the new entries are added. I met with an administrator to look at a home a couple days ago. They told me they had received 25 letters and decided to contact 6 of those which included myself.Not all of them have gotten the 3rd touch mark. I will re-assess once I have mailed the complete list 4 to 5 times each. So I'll continue with the current batch and not keeping adding new entries so I can focus marketing dollars exclusively on doing multiple touches each.

Jerry Puckett · Answer

@George RodriguezFor Clarity, you've sent 1100 pieces over 3 months. Some of your prospects have gotten 1 letter, some have gotten 2 and dome have gotten 3? I'm curious to know if you are being consistent, touching each prospect 4 to 6 weeks apart?

I guess what I'm saying is I do not understand how a part of your pool has only 1 letters while others have already gone on to letters 2 and 3? Consistency is a key factor in any campaign if you are looking to benefit from a multi touch campaign. It sounds like you are being persistent and consistent, but would definitely suggest cycling through letter 1 to all prospects....4 to 6 weeks later, cycle through letter 2 to all prospects, etc....

And maybe you are doing that....this being probate, you are likely adding to the list each month, starting letter 1, etc. Meaning that only a small number of your leads have gotten to the 3 touch mark. So one more question.....

Are you seasoning your prospects at all, or are you hitting them right after letters testamentary are issued.....at the height of their grief and pain....like almost everyone else does and you are facing stiffest competition? My experience with probate is that it takes time to turn the corner on those feelings and figure out that you really NEED to do something with the house.

George Rodriguez · Answer

@Ehsan Rishat I agree I don't want to be one of those direct mail marketers. ; ) I'm going to at least keep mailing the list that I currently have sent out 1 to 2 pieces to and continue the campaign.

Ehsan Rishat · Answer

It's tough to say if it's working or not. Most direct mail marketers stop after 2-3 mailing and you don't want to be one of them. Try sending another 2 mailings as response rate goes up a little after 3rd mailing.

George Rodriguez · Answer

@Avery Gilmer Thank you. I’m considering other sources for leads as well. I can imagine the real estate market in Arizona is very competitive as well. Best of luck to you !

When to know that a direct mail campaign is not working

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