Internet Mortgage Leads Take On Direct Mail

Direct mail is a standard-issue tool in most L.O.'s marketing arsenal. But is it still an effective way to generate leads?

Industry data points otherwise. According to the Direct Marketing Association, in 2005 direct mail campaigns only pulled an average 1.43% response rate. The downward trend is blamed on the avalanche of financial direct mail offers consumers are forced to sort through every day.

With response rates like these, L.O.'s have to craft a pretty compelling direct mail offer to get more than one person in a hundred to take action.

Internet Leads: A Better Option?

Some L.O.s have given up on direct mail campaigns, and now they're investing in internet leads. Is it a good strategy for you?

Compare the two strategies yourself:

Is there real interest? Quality leads not only want a loan, they're ready to talk to you.

Direct mail: The person on your mailing list gets your mailer… mixed in with all the other unsolicited offers for credit cards and banking accounts.
Internet leads: A person becomes a lead by using the internet to find mortgage information and ask for a rate quote. If her borrowing profile matches your requested criteria, her borrowing data and contact information is sent to you.

Timing. How long do you have to wait to see results?

Direct mail: If your lead decides to take action, she might wait days or weeks to contact you.
Internet leads: After your lead requests a mortgage quote, her info is verified and sent to you seconds after entering the lead company's system.

Steady lead generation. If you can't count on a steady source of good leads, you can't count on growing your business.

Direct mail: The response for each campaign hinges on how effective your design and sales copy is, and how well it's timed. One little goof can cost you the entire campaign
Internet leads: The lead company handles the marketing. You just decide how many leads you feel like working.

Return. Your campaign doesn't just need to deliver leads… it has to show a profit for it to be worth your effort.

Direct mail: How many loans closed and funded as a result of your last campaign? Did it make up for the costs AND still make you a profit?
Internet leads: With cost per lead so low, closing one good loan can make you back the cost of your whole campaign.

Interested in testing your own internet lead campaign? Talk to a Lead Specialist to learn more today.

Catch up on more mortgage lead trends in our Mortgage Marketing Resources.

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