What is the Average ROI of a Mortgage Postcard Direct Mail Campaign?
So what is the average ROI of a mortgage postcard direct mail campaign? You may be wondering how much this form of direct mail should cost and whether it’s worth it. First, you should know that there are two components to consider: response rate and cost per sale. In this article, we’ll look at each of these three variables, and discuss their impact on the overall ROI of your mortgage postcard direct mail campaign.
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Cost of an ROI mortgage postcard direct mail campaign
The cost of a mortgage postcard direct mail campaign varies considerably depending on the mailing piece, list size, and quantity of the mail piece. The postage starts at $0.35 per piece, so mailing 1000 postcards costs around $1,150. The postcards themselves are not digital marketing, so there are no pixels or conversion tracking codes, but they can still be used to calculate ROI. A typical postcard campaign will cost between $25 and $70 per piece.
Response rates vary widely and are hard to predict. For instance, a restaurant might get a high response rate by offering a free entrée to a first-time customer. A mortgage company could get a response rate of 0.2 percent, but still, make ten thousand dollars from a single transaction. However, this is unlikely to be the case for most mortgage companies. If you mail postcards to a list of potential mortgage borrowers, the response rate may be far lower than 2%.
The response rate of a direct mail campaign is an important component of determining whether the efforts have yielded desired results. While a higher response rate implies more conversions, a lower response rate means fewer sales. A marketing ROI calculator should reflect this as well as possible. It is also important to note that a higher response rate may not always translate into a more profitable campaign. Fortunately, direct mail marketing is easy to measure and calculate.
ANA/DMA surveys indicate that a direct mail campaign has a very high response rate. In 2015, the ANA/DMA Response Report found that 9% of respondents responded to house lists, while only 5% responded to prospect lists. Response rates can vary wildly. In the classic formula for success, Ed Mayer said that 40% of a marketing effort goes into the mailing list and 20% is the creative elements.
Cost per sale
Cost per sale of ROI mortgage postcard direct mail is a method used to measure the performance of a marketing campaign. This cost includes the costs of printing and mailing. You may also want to factor in the cost of time spent on producing and sending postcards. If you have a high-profit margin, calculating the cost per sale of ROI mortgage postcard direct mail will be easy. The cost of mailing and printing 1,000 postcards is about $1,000.
The cost of sending a direct mail campaign depends on the type of mail you are sending and the number of recipients you are targeting. Oversized mailers will generally cost around $10. Standard postcards will run you anywhere from ten to thirty cents per card. You should also budget for the cost of designing your mail piece. While you can design the basic mail piece yourself with Microsoft Word, it is not a cheap endeavor. You can hire a designer to do a more complicated design, but that will also add to the cost.