What is a Good Direct Mail Response Rate?
An excellent direct mail response rate is normally between .80 percent and 1 percent, with an exception for certain campaigns such as the VA Refinance Campaign which tends to have lower response rates. A lot of lenders do their own direct mail marketing, but they are unable to achieve and maintain response rates between .80 percent and 1 percent due to common mistakes such as not getting the message right with the letter, not having an emotional and intellectual connection with their prospects, not being able to manage campaign tracking, and not being able to get campaigns out on time.
Mistakes Lower Your ROI and Response Rate.
Lenders that do their own direct mail marketing are bound to make mistakes. These mistakes will lower your response rate and return on investment (ROI). Internal teams at lenders get delayed with interferences and consequently their marketing suffers. When a lender is unable to manage their campaign tracking and subsequently cannot get new and improved campaigns out on the market their response rate suffers. Direct mail marketing has the capability of increasing your productivity significantly if done properly. But simple mistakes can be costly and cause your marketing to be ineffective.
Analyzing Lending Science DM’s Direct Mail Marketing Response Rates.
Business Lending Response Data. (09/01/16 Update.)
Consumer Lending Response Data. (09/01/16 Update.)
Mortgage Lending Response Data. (09/01/16 Update.)
How Can Lending Science DM Help You?
Overall Lending Science DM is able to receive and maintain excellent direct mail response rates throughout our various campaign types (see figure 1, 2, & 3). At Lending Science DM not only do we want to achieve the highest response rates possible, but if we see that one of our campaigns is not working as well as we desire we will adjust the letter, and or mailing list to see how we can increase our direct mail response rate. We are able to make the necessary adjustments quickly through our fast and reliable campaign tracking. Although this may sound easy, many lenders are unable to resolve these types of issues as quickly and it is causing them to kill their ROI and produce below average response rates.
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