Real Estate Direct Mail Marketing

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Direct Mail Marketing for Real Estate Agents

Direct mail has always been a hot topic of discussion in the real estate industry. Real estate is unlike other industry verticals that have only started using direct mail recently. More businesses other than real estate are now enticed by direct mail as a marketing channel because it can now be fully automated.

Real estate direct mail has always been popular long before the introduction of automation in direct mail. However, new and advanced automation tools like PostGrid have made it easier to streamline real estate direct mail marketing.

That being said, automation tools can only give you power over your real estate direct mail marketing. How you exercise that power effectively to drive more engagements and generate more leads is entirely up to you.

We hope to present you with an ultimate guide to real estate direct mail marketing to help you understand its importance. Furthermore, we look at various real estate direct mail campaign ideas that can help you along the way.

Apart from discussing different real estate direct mail campaign ideas, we also discuss why direct mail is essential for the real estate business. This guide can also teach you valuable tips and tricks to make the most of your direct mail campaign real estate.

Why Should You Use Real Estate Direct Mail Marketing?

We know that all the top real estate companies and marketers in the world have always employed direct mail for lead generation. In fact, it wouldn’t be farfetched to say that direct mail had a crucial role in the growth of many of those leading real estate companies. 

But, how or why are real estate direct mail letters so effective? What makes automated direct mail campaigns unique from digital marketing campaigns? Let’s look at some of the things that make direct mail marketing special for real estate marketers.

Directly Connect With The Prospect:

New and advanced tools enable you to access lists of any size and area. You buy or rent such lists and pitch your ideas or offers to prospects who live in a local geographic region.

Tangible Resource:

Even the most advanced digital marketing solutions are not tangible. But, on the other hand, direct mail offers a tangible resource that your prospects can hold on to for days, weeks, or even months.

Continuously seeing an attractive image of a property that interests the prospect is bound to generate a response from the recipient. Even something as simple as a postcard that the target audience sticks on their refrigerator can serve this purpose.

Easily Engage Drip Campaigns:

Apart from being tangible, direct mail is also popular for being an ideal channel for drip campaigns. As we mentioned before, its tangible nature makes it easy for the recipients to hold on to. Therefore, you can effectively use it for nurturing your prospects over extended periods.

Direct Mail Scalability And The Real Estate Market

We know that real estate is a major player in the modern economy. According to “Mordor Intelligence,” the residential real estate market alone is estimated to be around GBP251 billion in 2019. Furthermore, this data only considers England and Wales.

Did you know that the average house prices have increased significantly all over the UK? According to the Office of National Statistics, England house prices saw a rise of 7% in house prices which is the lowest of the lot. At the same time, Scotland saw the highest increase of 14.6% in their house prices. 

The real estate market is a massive one that keeps on growing every passing day. Hence, it requires a marketing system that can scale up with the growth of the real estate market. When coupled with an advanced automation tool like PostGrid, direct mail is highly scalable and ideal for real estate marketing.

There are a few factors that make direct mail the perfect fit for real estate marketing campaigns, and this includes:

• The clientele often belongs to specific localities and share similar traits.
• The built-in social proof that you get being a real estate company/agent.
• The real estate campaigns are often focused on a local geographic area.
• Automated systems enable you to conduct highly targeted campaigns.

What Makes Direct Mail The Perfect Fit For Real Estate Marketing?

Real estate direct mail marketing has survived despite the phenomenal steps we have made on digital platforms. In theory, digital marketing should be more efficient than any offline marketing strategy, including direct mail.

We know that digital channels, including emails and text messages, can communicate with the target audience instantaneously. In contrast, direct mail can take several days to deliver your message to the target audience. Yet, businesses choose to send out real estate direct mail postcards. 

So, why do real estate companies and agents still choose to use real estate direct mail campaign ideas?

There are several reasons for this, and a prominent one among them is its high response rate. But, that’s not all. Listed below are some of the significant reasons direct mail is the perfect fit for real estate marketing.  

Showcase Your Expertise in a Local Area

As far as real estate buyers are concerned, they always prefer to pick a real estate agent who is familiar with the locality. Real estate buyers know that a local market expert is more reliable than the other. It is mainly because the buyer expects them to have extensive knowledge of the local area. 

Both buyers and sellers in the real estate industry prefer to do business with local market experts. More often than not, a local market expert has profound insights about a property in their areas than any outsider. The insights can include everything from the ZIP code to identifying the ideal street for the buyer. 

Hyper-Targeted Direct Mail

Using a hyper-targeted direct mail campaign, you can successfully showcase your extensive knowledge of a locality. You can use direct mail to create the impression that you know the salient features of a geographical area and what goes on there.

You may use your direct mail strategy to establish your expertise in a local area, even if you are not from there. But, making it convincing enough for the real estate buyer or seller is easier said than done. Consider the guidelines provided in the following table before drafting real estate direct mail letters.

Real Estate Direct Mail Letters For Buyer	Real Estate Direct Mail Letters For Sellers
Showcase specific neighbourhoods that align with the client’s interests/needs. Pitch better real estate deals by drawing comparisons with the competitors. Show familiarity or expertise in specific markets such as residential real estate.	Show that you have extensive knowledge of the neighbourhood and its area. Pitch how you can wring out the best possible price for their property. Based on the target audience, show your ability to work around tight timelines.

As we have already mentioned, the most crucial part is to convince your prospects that you are well aware of the locality. Direct mail letter real estate can accomplish this with relative ease and enables you to connect with the prospects.

Direct Mail Automation Capability

One of the crucial reasons direct mail is still relevant and growing in popularity is automation. Today, you have access to advanced tools like PostGrid that enables you to fully automate your direct mail process. As a result, you now have access to every direct mail capability you need right at your fingertips.

Direct mail automation enables you to send real estate direct mail postcards to your prospects in practically no time. Using an advanced automation system like PostGrid, you can even schedule when to send your real estate direct mail letters.

Connect to Your CRM

You can connect direct mail automation systems like PostGrid to your CRM. Executing real estate direct mail campaign ideas becomes highly convenient once you connect your CRM with a system like PostGrid.

With the direct mail automation tool connected to your CRM, you can keep track of prospect engagements and get valuable insights. Furthermore, it allows you to personalise your real estate direct mail letters. 

Save Time And Resources

Automation enables you to get rid of many manual tasks that are painstakingly slow. For example, you can automate everything from personalising, printing, and mailing your real estate direct mail letters. This frees up your time and saves valuable resources, including a workforce that can now be redirected elsewhere.

Social Proof

Social Proof is an essential part of all real estate direct mail campaign ideas. It is one of the best motivators for real estate clients. Although social proof is applicable for every industry, it is more vital in the real estate industry.

Anyone who’s thinking about making a real estate purchase would be reassured to know that their agent has helped people in similar situations. Seeing that you have delivered positive results in the past will put your prospect’s mind at ease before making a high-value purchase like real estate.

Social Proof For Pitching to Sellers

When using real estate direct mail marketing for pitching to real estate sellers, you need to focus on your successful sales history. In this case, you should highlight sales stories where you were able to sell properties above the market value.

Social Proof For Pitching to Buyers

Highlighting the same sales story you sent to your prospective sellers would be a recipe for disaster when targeting prospective buyers. Here, you should carefully choose social proof where you were able to sell properties to your clients at a price below the market value.

Well-Timed Offers

We know that certain times of the year see more sales and leads for real estate agents and marketers than others. Usually, summer sees a huge number of real estate sales than any other time of the year. Direct mail is the perfect tool you can use to pitch seasonal offers to your real estate targets.

Real Estate Direct Mail Marketing During Summer

Summers regularly see a spike in real estate sales because most families tend to move to a new place during this time. Otherwise, can you imagine the nightmare of packing your kids and getting them enrolled in the middle of the academic year?

Generally, the real estate sales pick up in March, and it keeps on increasing up until June. After June, the real estate sales tend to dip down slightly, only to be picked up again in August. However, the spike in August is a minor one as compared to the summer sales.

Real Estate Direct Mail Marketing During Winter Break

Like in summer, many families also opt to move to a new place during the winter break to minimise the impact on the children. Hence, you can notice a significant spike in real estate sales starting from November.

Real Estate Direct Mail Marketing During End of The Year

Another time of the year where you can see a spike in real estate sales is during the end of the year. However, the real estate sales during this time are not as big as those in summer or winter break. 

However, it is still worth your attention. Generally, people tend to move during this time because of tax-related or financial reasons. 

Ideal Time to Connect With Prospects

As you can see, there are certain times of the year where the demand for real estate properties is higher than the others. However, that does not mean that you can sit ideally until the time comes. Real estate is different from usual products or services that see a seasonal demand.

You need to ensure that you have connected with the prospects way before they intend to move to a new place. Therefore, you need to send real estate direct mail postcards or letters to your prospects in the months leading up to their move.

It is essential to plan your real estate direct mail marketing ahead of time. Most real estate prospects tend to start planning for their move months before the actual move. So, you need to ensure that you are there for the prospects during their consideration stage. 

Only if you can stay on top of the prospects can you hope to monetise the seasonal demand for real estate properties.

Building Long-Term Relationships

When it comes to the real estate business, building and maintaining long-term relationships is of vital importance. People tend to move to a new place for work or family or better living standards all the time. So you need to monetise this by establishing a long-term relationship with your clients.

Once you have established a long-term relationship with your real estate customer, they are bound to reach out to you every time they move. Furthermore, it is also likely that your long-term clients will suggest your real estate business to their friends and family.

There is no better medium to build this kind of relationship with your clients than direct mail. Direct mail is personal, tangible. But, more importantly, it is capable of generating an emotional response from the recipient. As long as you have provided them with quality service, direct mail is all you need to use to stay on top of their mind.

5 Ways to Ensure Effective Real Estate Direct Mail Marketing

Real estate direct mail marketing is hard, and there is no denying that fact. However, with the correct information and proper timing, you can ensure the best possible results. We have listed below five ways to ensure effective implementation of your real estate direct mail campaign ideas.

1. Take a Localised And Relevant Approach

Generally, businesses of all kinds tend to take a fancy global approach to their marketing. Although it may work in most cases, that is not the case for real estate direct mail marketing. Unlike other products or services, the target audience here prefers a local expert for their needs.

The real estate client wants to know how you could help people with similar requirements as theirs. Furthermore, it means that your prospects are looking for instances where you have sold homes within their locality. 

Therefore, you should consider including geographic information in your real estate direct mail letters. This way, you can quickly grab the recipient’s attention and establish your experience in the local real estate market.

Use Real Images of The Property And Locality

You should be careful when creating real estate direct mail postcards or letters that you should always use original images. You must not use unrelated stock images unless absolutely necessary. Do not make your prospects think that you have misled them with fake photos.

Using attractive pictures of a specific property in a particular neighbourhood indicates that you have access to and knowledge of that locality. So, you should try to include images of the local attractions or amenities like a children’s park. 

Highlight Local Events

Your real estate marketing cards can highlight the popular local events that your target audience might enjoy. It will also help your prospects get a picture of the kind of lifestyle they can expect from that locality. Such small details can have a significant impact on your prospects. Therefore, you must make it a point to utilise them on your real estate direct mail letters.

2. Timing Your Real Estate Direct Mail Marketing

We have already discussed above that the summer and holiday seasons are the busiest time for real estate businesses. Perfectly timing your direct mail letter real estate gives you a significant advantage and helps boost the lead generation rate.

You can use real estate direct mail postcards to wish a “Happy Holiday” to your prospects. It will show that you value your prospects. Furthermore, it also serves as a subtle reminder about your brand and the services it offers. 

However, it would be best to remember that the holidays are also a busy time for postal services like Royal Mail. Therefore, there is a chance that the postal mail you sent will take more time to reach its destination. So, you should consider this and send such postal mails earlier to ensure that they are delivered on time.

3. Use Resources That Prospects Can Hold Onto

Sometimes, the prospect tends to dispose of real estate marketing cards they receive even if they find the offer relevant. It may be accidental or intentional since the postcard serves no other purpose to the prospects.

Delivering useful resources is one of the best real estate direct mail campaign ideas. The reason for this is that the prospects are more likely to hold onto them. However, you must first be willing to put your time and head into it. Identify and analyse the target audience and find something that they are interested in.  

The goal of sending resources to your target audience is to provide them with something of value that they are not likely to keep. That way, even if they are not currently interested in your service, they may change their mind in a year or so. Repeatedly seeing your brand will help you stay on top of the prospect’s mind.

Send Game Schedules

One of the popular resources used in real estate direct mail marketing is game schedules. You could send a game schedule of a popular sport such as football or cricket to your target audience. Try focusing on specific sporting events like “The Ashes” series or the FA Cup.

4. Create a Sense of Urgency

Creating a sense of urgency is a strategy that can boost the sales of any business, and real estate is no exception to this. Perhaps urgency works even better when employed in real estate than most other industries. 

The thing about real estate prospects is that they spend a great deal of time and money on a purchase. A real estate property is unlike any products or services that you can buy. It could be the home for a new family or working space for a dream business. 

Naturally, the real estate customer doesn’t want to pass up on a good opportunity. So, when you create an impression that their dream home could get sold to someone else, your clients are forced to take action.

Use Phrases Like “Move-in Ready”

Generating urgency in real estate buyers is easier than you might think. Even a simple phrase such as “move-in ready” can convey the message that the property intends to sell quickly. 

This alone is enough to generate urgency in a prospect who genuinely likes the property. As the prospect doesn’t want to let such an opportunity slip by them, they will likely take action and respond to your mail. 

5. Pitch an Incredible Offer

Even if all else fails, there is still one thing that can save the entire direct mail campaign real estate. And that one thing is the real estate offer you pitch to the prospects through direct mail. A good proposal is likely to deliver good results for your real estate direct mail campaign ideas.

The offer you use in your real estate marketing cards doesn’t necessarily have to be monetary. The perfect real estate offer is dependent on the clients and their needs. So, even finding the right home in the right area where it is hard to find a property is considered an irresistible offer to the prospect.

Discount on Down Payments

The biggest practical challenge that often stands in the way of a prospect making a real estate purchase is the down payment. Although most down payments start from 5%, it is not unusual to advise the buyers to put down higher down payments.

A 10% or even 20% down payment can help the customer avoid costly mortgage payments when necessary. In addition, you can offer discounts to real estate down payments to encourage more prospects to respond to your real estate direct mail marketing.

No Down payments

Requiring no down payments from the real estate prospects is also a highly effective strategy to generate a response from the target audience. A property that requires no down payments is ideal for generating an immediate response from prospects. 

However, you need to ensure that the offer is highlighted in the direct mail, so the reader does not miss it. Furthermore, you can also include the monthly mortgage prices for the property that is affordable for the prospects. You should also try to ensure that the prospect is qualified for the given mortgage prices.

Top 4 Real Estate Direct Mail Campaign Ideas

We have established the general guidelines that you should follow for effective real estate direct mail marketing. But, you need feasible real estate direct mail campaign ideas to effectively impact the reader. Below are some of the most effective strategies you can use in your real estate direct mail marketing campaign.

#1 Handwritten Real Estate Direct Mail Letters

One of the most effective real estate direct mail campaign ideas is handwritten direct mail letters. Why is it so effective on real estate prospects? Well, the answer to that question is another question, and that is, “how would you feel to receive a handwritten letter?”

Handwritten real estate direct mail letters are bound to make your prospect feel valued by your real estate business. This is because the prospects notice every detail of the mailer. It includes the envelope and even the ink on the envelope.

Since almost all mailers are now printed, even the address written using an actual pen is enough to make it stand out. Furthermore, it makes the recipient feel special because no one writes personalised handwritten letters anymore.

Challenges in Implementing Handwritten Letters

Despite its hyper-personalised nature and ability to generate responses from the recipients, handwritten letters are not very practical. Unless you have a minimal list of prospects, you can not hope to implement handwritten notes for real estate direct mail marketing.

However, real estate businesses can choose to narrow the prospects down to a dozen highly convertible ones. You can then send handwritten real estate direct mail letters to these select few and boost your chance of a conversion.

#2 Real Estate Direct Mail Postcards

Postcards have always been one of the most effective direct mail marketing methods for real estate businesses. You can use real estate direct mail postcards to stay on top of the minds of your prospects. Furthermore, postcards use up very little paper and ink, making them relatively inexpensive.

Apart from being economical, postcards can easily spell out your message to the prospects. As they have no envelopes, conveying the message becomes even easier. Additionally, you can also use pictures on postcards to showcase potential properties to the recipients.

However, there are a few things that you should include in your postcard to ensure the best results, and these include the following:

• Call to Action: Make sure that the postcard has an attractive CTA that pushes them to take the desired action, such as visiting your website/landing page. 
• Branding: Ensure that your branding is consistent by including your brand logo, photos, and contact information. You may also want to use similar colour schemes to your brand logo.
• Professional Images: You need to use clear, high-quality images of the properties to grab the attention of the prospects. Ideally, you should employ an experienced real estate photographer for this purpose.
• High-Quality Paper & Ink: The quality of your postcard is likely to be used to judge the quality of your services. Outsource your direct mail printing to reliable companies like PostGrid to ensure top quality paper and ink for your postcards.

Automate Your Real Estate Direct Mail Postcards

To make the most of your real estate marketing cards, you need advanced automation capabilities. For example, with an advanced automation tool like PostGrid, you can personalise, print, and deliver your postal mails via the Royal Mail.

Using an automated direct mail system enables you to save valuable time and resources. These resources can now be used on more critical business operations. Furthermore, PostGrid can verify whether an address is deliverable using the PAF (Postcode Address File) database.

#3 Direct Mail Newsletter

If we are brutally honest, we would have to agree that newsletters are perhaps the most boring piece of mailer one can receive. But, it does not have to be like that, and it depends entirely on how you can innovatively use newsletters. 

When used correctly, newsletters can be beneficial for your business. A direct mail newsletter should look professional and be attractive enough to grab the recipient’s attention. What’s even more important is the title of your newsletter as it is the first thing the reader notices in it. 

Coming Up With a Title For Your Newsletter

When trying to come up with a title for your newsletter, it is best to base it on an issue the recipient is facing. For example, sellers may find it hard to get the desired property because of the geographical location of their property.

In this case, the title can be something like, “Is your location stopping you from getting the best property pricing?” Similarly, you can use the pain points of real estate buyers to formulate a relevant title for your newsletter.

Things to Consider When Creating a Newsletter

It would be best to consider a few things before creating a newsletter for your real estate direct mail marketing. Not doing so is an easy way for your newsletter to end up in the waste bin. By considering the following points, you can ensure that your newsletter is relevant to the target audience.

• What are the interests of the target audience?
• What are the problems faced by your target audience?
• What goals does your target audience wish to accomplish?

By answering these questions, you can get a broad picture of what your newsletter should look like. 

#4 Gifts And Keepsakes

Gifts are a sure-shot way of making an impression on your prospects. Your prospects are unlikely to forget a tangible gift that is given to them. Furthermore, a tangible gift is something that the prospects can keep with them and, hence, a reminder for your brand.

According to Corporate Communications: An International Journal, corporate gifts can play an essential role in strengthening your relationship with the customers. Furthermore, gifts and keepsakes promote goodwill, nurture new connections, and advertise your business.

Timing is Everything

When sending gifts to your customers or prospects, timing is everything. The gift you send is meant to convey the message that you value the relationship with the customer. 

Hence, what really matters is that your gift is timed and appropriate for your prospects or clients. More often than not, it is the thought that counts and not the actual gift.

Go For Inexpensive But Thoughtful Gifts

Unlike what some of you might have thought, the gifts you send to your real estate prospects or clients do not have to be expensive. A research carried out by Stanford University’s Graduate School of Business confirmed that it’s the thought that counts and not the gift itself. 

Finding affordable gifts for your prospects/clients shouldn’t be so hard. However, finding an appropriate one may be more challenging than you might expect. Even something as simple as a birthday card along with some candies could help you connect and form a relationship with the audience.

Pick a Direct Mail Appropriate Gift

Another challenge in sending gifts in real estate direct mail marketing is that it has to be appropriate for direct mail. It means that your gift can’t be too heavy or fragile. Sending heavy gifts is not a cost-effective way, and fragile ones can get messy for you and the recipient. Some of the most common gift items in real estate direct mail marketing include the following:

• Keychains
• Refrigerator Magnets
• Playing Cards

Automation For Streamlining Real Estate Direct Mail Marketing

Executing your real estate direct mail campaign ideas is not an easy task, and you need all the help you can get. However, direct mail automation tops the list of things that you need for streamlining your real estate direct mail campaign ideas.

It would be best to employ powerful direct mail automation tools like PostGrid to streamline your direct mail operation. For example, using a tool like PostGrid enables you to personalise and print real estate direct mail letters easily.

Additionally, tools such as PostGrid enables you to run address verification using Royal Mail’s official address database. As PostGrid also comes with GDPR, DPA (Data Protection Act) compliance, you can ensure that all your data is safe and secure.

Conclusion

Real estate direct mail marketing has come aeons ahead of what it once used to be. Today we have a highly competitive market for real estate all around the UK. Therefore, you need to have innovative real estate direct mail campaign ideas to succeed today.

However, innovative ideas can only get you so far if you don’t have the tools to complement those ideas. Hence, you need advanced automation tools like PostGrid to ensure the execution of your real estate direct mail campaign ideas.

Using a tool like PostGrid, you can automate the entire direct mail process. You can even schedule direct mails to be sent to your audience on a timely basis. Furthermore, you can also access its advanced address verification API to ensure the deliverability of your direct mail.

Automated real estate direct mail marketing is more efficient and cost-effective. You can save valuable time and resources using a computerised solution like PostGrid. Therefore, it is high time to switch to an automated solution for your direct mail campaign real estate.

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What Are Postcodes?

All the countries around the globe use postal codes. It is one of the few things we have in common regardless of where we are from or where we live. Almost all countries have the same or similar postal code system. But, they are known by several names.

Initially, postal codes in the UK went by their original name, but now the postal codes in the UK are called postcodes. Furthermore, postal codes in the British Overseas Territories and Crown dependencies are also called postcodes. At the same time, you will find a different name for postal codes in other countries.

For example, the postal codes in the United States are called ZIP codes. Similarly, in India, they call their postal codes by the name PIN codes. So, it might be confusing to people or, more likely, businesses that send out domestic and international direct mails.

Postcodes play a vital role in facilitating easy and efficient direct mail communication. Despite the boom of the digital age, postal mail remains a formidable communication medium, especially for businesses. With the advent of direct mail automation, more and more businesses are turning to direct mail marketing. 

But, most of them do not understand postcodes or their significance in direct mail campaigns. Here, we will discuss what postal codes are, how they can help your business operation, and more. A proper understanding of the postal codes will help you to organize effective direct mail campaigns.

Furthermore, it will also help you streamline your direct mail operations, including targeting customers. So, if you are planning on implementing direct mail marketing for your business, you should keep on reading. 

What is the UK Postal Code or Postcode?

The UK postal code is also known as postcode. It is the postal code used for addresses inside the United Kingdom. They are similar to ZIP codes used in the US as they both serve the same purpose. Both postal codes are used to denote addresses in their respective countries.

However, how UK postal code is denoted is very different from ZIP codes in the US. The postal codes in the UK are alphanumeric whereas, and the ZIP codes contain only numbers. This difference is because the system used to determine and categorize the addresses in both countries are different.

Early History

Although the postal code as we know it was only established around the late fifties, the idea was conceived much earlier. You could even say that the idea for a postal code system originated in England or London, to be more precise.

In 1857, almost a hundred years before the inception of the modern-day postal code, London was divided into ten postal districts. It became increasingly challenging to manage postal mail delivery in a hectic city such as London.

Modern Postcode System

The postal code in the UK was devised by the General Post Office, which is today’s Royal Mail. Alphanumeric postal codes were first implemented in the UK in 1959, but they continued evolving for years. It was around this time Royal Mail tried to use electromechanical sorting machines on an experimental basis.

Soon, Royal Mail came up with a six-character alphanumeric code. This new postcode assigned three letters to a geographical area and three numbers to identify individual addresses. By 1974 the UK postal codes were pretty much optimized, and only slight modifications have been made to it since then.

Why is Understanding Postcodes Important?

We know that the postal codes were first developed by the Royal Mail for enhancing and streamlining postal deliveries. But, you must understand that postcodes and their geography have become an integral part of business planning over the years.

It is true for the UK postal codes and all the postal codes around the world, including ZIP codes in the US. The application of postal codes is not just limited to postal delivery and has excellent growth potential. Hence, businesses must get a proper understanding of postal codes.

Formulate Marketing Strategies

Understanding postal codes and their working is essential for advanced marketing strategies like automated direct mail marketing. For example, systems like PostGrid automate your direct mail campaigns and provide you with advanced features.

PostGrid also enables you to have advanced capabilities like geocoding and reverse geocoding. Using such a feature, you can easily plot the presence of your target audience in specific areas. You can then use this map or data to develop targeted campaigns explicitly made for these locations.

Explaining How Postcodes Work

As we have briefly mentioned before, the postcodes are a combination of numbers and letters or, in other words, alphanumeric. Usually, a postcode consists of five or seven characters, and they are used to identify a group of addresses/houses.

The UK postal codes have two parts: an outward and an inward code, and space separates them. It is also worth noting that every full postcode contains fifteen delivery points on average. Moreover, each postal delivery by the Royal Mail also happens in two stages.

Routing of Mailer Using Postcodes

Every time a letter is collected for delivery, it is identified using the first part of the UK postal code or the outward code. After identifying the outward code, the mailer gets routed to its main sorting office. Similarly, the local sorting office identifies the second part of the postcode or the Inward Code.

The mailers get assigned to individual mail carriers by the local sorting offices. A similar system is used for postal delivery all around the world. However, when it comes to UK postal codes or postcodes, they operate at four levels.

The four levels of operation of a UK postal code are better explained through an example. So, from here on, let’s consider the postcode SP7 0AG to explain how postcodes work.

Level 1: Area Postcodes

The Royal Mail has divided the areas it serves into 124 parts for making quick and easy postal deliveries. As you can see in the postcode example, we have taken that the postcode is split into two halves. Note that the postcode’s first part is the outward half of the postcode.

The first two letters of the postcode are used to represent the area postcode. If we consider the postcode example SP7 0AG, the area postcode would be SP. Usually, the area postcodes are named based on the area or Post Town they cover. However, It is not always the case.

The SP in the example we have taken denotes the Post Town Salisbury. Similarly, AB is used to represent the Post Town Aberdeen, YO for the Post Town York, and so on. Pretty simple, isn’t it? So this way, the Royal Mail can easily identify which Post Town your mail should go to.

Special Cases

Some area postcodes are unlike the normal ones we are familiar with and look disconnected from the Post Town they represent. Take Rochester in Kent or Lerwick in Shetland, for example. Their area codes are ME and ZE, respectively.

Both of these area codes may seemingly appear disconnected from their respective Post Towns. However, that is not always the case. Here, ZE for Shetland was derived from the Zetland, an archaic spelling of Shetland.

Similarly, London also has area codes that do not really align with Post Town. It is because they had developed a postal system for London way back in the 19th century. For example, the area code for North London is simply “N.”

Trivia

Did you know that the smallest size area code in the UK is WC, West Central London? Its area is only 2.59 square kilometres. In the meantime, Inverness (IV) is the area code with the biggest size. Inverness spread to an area of 16169.3 square kilometres.

It is worth noting that the average size of an area postcode is 2009.831 square kilometres. Shetland (ZE) has the least number of districts, with only three of them in it. At the same time, Belfast, with 80 districts, has the largest number of districts.

Level 2: District Postcodes

As you might have already guessed, each postcode area is further divided into district postcodes for segmentation purposes. The district postcode is denoted by the number or numbers immediately following the area postcode.

Let’s consider the postcode example SP7 0AG again. Here, the district code is the 7 in SP7. Similarly, you can find the district postcode in every postcode. The district postcode may contain one or more than one digit, so the space between the outward and inward is essential.

Provision of Districts in Postcode Areas

There are almost 3000 postal districts all over the UK. By subdividing the area postcodes, the district postcodes enable the Royal Mail to route the mail to their relevant sorting offices. We know that districts fall into different areas, and there are around 23 districts in an area.

However, the actual number of districts in an area can vary anywhere between 3 and 77. This variation is mainly due to the considerable difference in size and population of the postal regions.

Trivia

The smallest postcode district in the UK is Eastern Central London or EC2N, with a 0.07 square kilometres area. On the other hand, the biggest postcode district is Lairg, and the district code is IV27. It has a massive area of 3607.8 square kilometres. Thus, the average size of a postcode district in the UK is 85.47 square kilometres.

Level 3: Sector Postcodes

Each postcode district in the UK is further divided into various sectors. Similar to the district code, the sector code is also denoted using numbers. In the postcodes, they are written right after the district code however, they are separated by space.

It also means that the sector code is a part of the inward code that we have mentioned above. Whereas, the district code is a part of the outward code or the first half of the postcode. As both are numeric, separating the district from sector codes avoids unnecessary confusion.

Forgetting to add the space between the inward and outward codes is one of the common mistakes businesses make. Although such minor mistakes are expected now and then, it is not ideal for business communications.

It is why most businesses now choose to use an automated direct mail system like PostGrid. With a tool like PostGrid, every address is standardized and verified, so there is no scope for such errors.

Provision of Sectors in Postcode Districts

There are around 11,200 postal sectors in the UK. The postal sectors play a vital role in helping the Royal Mail to pick their delivery rounds. There can be 1 to 10 sectors in a postal district. However, the average number of postal sectors in a district is three.

Trivia

The smallest postal sector in the United Kingdom is in London, which is EC3A 1. It has an area of merely 0.002 square kilometres. On the other hand, Sutherland in Lairg is the largest postal sector, and it has an area of 3607.8 square kilometres. This brings the average postal sector area size to 25.1 square kilometres.

Level 4: Unit Postcodes

Unit postcode is the fourth and final level of a UK postal code. It is used to point you towards a group of houses or addresses. The unit postal code can be used to describe a particular property or a set of properties. Listed below are the type of properties that can be described using a unit postcode:

• Street or a part of the street
• Single Addresses
• Group of Properties
• A subsection of a property
• Individual organizations
• Departments within an organization

As you can guess, there is a vast number of unit postcodes in the UK, over 1.7 million to be exact. However, this number regularly keeps on changing as around 2750 unit postcodes are created, and 2500 unit postcodes are terminated every month.

Large User Postcode For Organizations

It is worth noting that the Royal mail allocates some organizations with a unique postcode. These unique postcodes are assigned to better segment the delivery of a large number of mails made to a single address.

However, to qualify for a unique postal code, an organization must receive an average of 50 mailers or more a day. Therefore, the Royal Mail allocates your organization a large user postcode only if this condition is met. For example, DVLA is a prominent mail user, and they have different postcodes for their various departments.

Importance of Unit Postcodes

You may think of unit postcodes as worker ants that do all the work on a base level. Unit postcodes enable you to identify around thirty million addresses or delivery points in the UK. So, you can deliver to a particular address only because you have the address’s unit postcode.

As you can guess, you need at least one delivery point to constitute a unit postcode. Furthermore, a unit postcode can have as many as 100 delivery points. However, the average number of delivery points in a unit postcode is 17.

Trivia

Each postal sector has 180 postcodes on average. As mentioned above, a postal sector needs to have at least one postcode address and a maximum of 390. However, theoretically, the maximum number of postcodes in a postal area is 400.

What is a Postal Code Used For Other Than Sending Mailers?

Although the primary application of the UK postal code is to send mailers throughout the UK, that is not all postcodes do.

Since postcodes find their way into sectors, districts, and areas, they can define geographical locations. Its capability to define locations through the UK showed immense potential for business marketing. Listed below are some of the significant applications of postcodes.

Demographic Profiling

The population inhabiting the whole of the UK is 67 million people. Each of these 67 million people has its personality. They may have a different outlook on life, different priorities, needs, and they all lead to a way of life that is unique to them.

With such a diverse and rich tapestry of life, the United Kingdom is home to audiences of all kinds. Therefore, it presents an immense opportunity for marketers in practically all industry verticals. However, it is seemingly impossible to identify the ideal audience for your product or service.

Identifying Distinct Groups

Demographic profiling is all about identifying distinct groups of people from a vast population such as the UK. The unique group of people you choose to target should have a lifestyle and needs that perfectly fit the product/service you are offering.

Some businesses may already have an existing database of such potential customers. But that is not always the case. Moreover, even the ones with an existing database may want to expand their target audience. So, in either of these cases, you would need a solution like geodemographic classification.

Postcode Mapping And Geographic Analysis

Businesses or more particularly marketers can get a better understanding of their target audience through postcode mapping. It enables you to get geographical context to your data, including customer behaviour. Provided below are some of the ways you can access and utilize postcode data.

Postcode Point Mapping

A point set map can be based on several things such as full UK postal codes, geocodes, or a general central point. For example, the central point referred to could be based on incomplete postcodes, postcode sectors or areas, or even administrative geography.

Postcode point mapping enables you to chart features of interest in a geographic region. Furthermore, the mapping makes it easier to understand as the data is converted from a table format. The points you can map can be anything such as your best customers, store and sales network, and so on.

Heat Mapping

Even complex data can be made easily understandable with the help of a heat map. Therefore, it is no wonder that numerous businesses use heat mapping for plotting crucial aspects of their business data. Some of the popular data used for heat mapping include the following:

• Customer/Competitor locations
• The average value in an area (e.g., purchase levels)
• Demographic trends
• Distance between customer’s residence and stores/reps

You can even set the areas of our maps using postcode, administrative areas, and more. Furthermore, a heat map can use colour coding to better understand the map and its data. It means you can use red, amber, green, or any other colour scale. You can even choose a colour scheme that matches your company’s branding.

Postcode Territory Mapping

Territories or catchments are created via postcodes, and they can be used for guiding sales and delivery networks. Usually, these maps can be based on several things, such as a list of postcode references or fixed radii from specific points.

Additionally, you can also base the maps on customer value within an area or number of households that fit a demographic group. You can even overlap or draw borders to calculate catchments depending on the tool you are using.

Postcode Sector or Area Mapping

Sometimes businesses may require maps, not of a specific area, but of a specific area. For example, consider a marketing campaign that’s targeted within a certain geographic area. In such cases, postcodes play a vital role in formulating a map for your business.

What is ZIP Postal Code?

The ZIP in ZIP code is short for the Zonal  Improvement Plan. As we have mentioned before, the postal code system is universal, and it goes by different names in different parts of the world. The ZIP codes are the postal code system that is used in the US.

Like the postcodes in the UK, the ZIP codes also enable their postal service provider to identify locations or addresses. However, the US ZIP code system uses a 9-digit ZIP code system, unlike the alphanumeric system used in the UK.

Postcode Vs ZIP Code

Basis For Comparison	Postcode	ZIP Code
Country	The United Kingdom	The United States of America
Year of Inception	1959	1963
Purpose of Creation	Address reference, identification of locations, census and route planning	Address reference and identification of locations
Numeric/Alphanumeric	Alphanumeric	Numeric
Length	The length of the postcode can vary depending on unique locations.	Between 5-9 characters. A full ZIP code consists of 9 digits. You may choose to use the first five digits but, it can affect the accuracy of the address.

Automated Solution For Determining Postcodes

The primary purpose of the UK postal code for businesses is to send direct mail to their customers or clients. However, getting access to accurate postcodes is not so easy. Even accurately copying the postcode to a mailer can be hard at times, especially if your business sends bulk direct mails.

Thankfully there are advanced solutions like PostGrid that can help you verify and standardize address databases. For example, PostGrid’s address verification API allows you to bulk verify your addresses using a simple CSV file.

Also,  you can choose to print your direct mails, including postcards, brochures, newsletters, and more via PostGrid. By doing so, you can be sure that your mailers have validated and standardized addresses. PostGrid even offers advanced capabilities like geocoding to make the most out of your marketing efforts.

Conclusion

Postal code is used for numerous purposes today, and its scope goes well beyond postal mail delivery. For example, businesses now rely on postcodes not just for delivering marketing and communication mailers but also for advanced marketing strategies. 

Postal code plays a vital role in advanced operations, including demographic profiling and postcode mapping. However, all of this requires accurate postcode data. Powerful address verification API such as PostGrid can help you access accurate postcode data via Royal Mail’s address database. 

PostGrid also has advanced capabilities like geocoding, which can help you in postcode mapping. Therefore, tools like PostGrid enable you to target your direct mail better and enhance its results. You can even personalize, print, and mail your direct mail via the Royal Mail using PostGrid.

It is high time businesses adopt innovative solutions like PostGrid to streamline their direct mail operations. With an exceedingly high deliverability rate and automated process, you can minimize your postcodes and direct mail errors. As a result, you will be able to run seamless direct mail campaigns and access deep insights that you never could before.

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Direct Mail Marketing Costs

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Direct Mail Marketing: How Much Does Direct Mail Cost?

When you send direct mail pieces to your prospects, you tend to sell 28% more products than other marketing techniques. Hence, it increases your ROI considerably.

However, the primary question that remains is how much direct mail costs to the marketers? To answer this question, you may need to consider several sections. Plus, depending on your business type, mailing list’s size, and the quality of your direct mail campaign, the cost may vary significantly.

Several things that decide your direct mail cost are graphics, copy, type of the collateral, printing, personalization, number of direct mails, and shipping. Some companies handle design and copywriting in-house to reduce the cost. However, other companies hire professionals to do it for them. The latter option may cost more in the beginning but provide better chances of good revenue generation.

Once you’ve added all direct mail elements’ expenses, you can expect your direct mail to cost you anywhere between $0.03 – $3.00 per piece. You can also measure your cost per thousand direct mails sent, commonly known as cost per thousand (CPM). It makes the process of analyzing the cost easier.

All you have to do is determine your direct mail pieces’ total cost and divide it by 1000. This method is also recommended to calculate the price because most vendors provide you with a quote in this format.

The number of your mail pieces has a significant role in deciding the overall cost of your campaign. If you want to decrease your direct marketing cost, consider sending direct mail pieces in bulk.

In this guide, we’ll discuss the various elements that affect the cost of your direct mail campaign. By choosing and deciding the quality and size of these elements, you can regulate your direct marketing cost accordingly.

Direct Mail Design Charges

Depending on your direct mail design, it can cost you up to $1000, starting from $10 per direct mail campaign. This vast difference in the price usually depends on your choice of designer and the collaterals you’ll use in your direct mail campaign. Plus, the content, graphics, images, etc., also matters.

Additionally, the major cost difference is caused by the person who’ll design your direct mail. For example, you can either get a company to create your mail sample, an expert with tons of experience, a new freelance designer, or someone with designing skills in your company.

However, that’s not all. You can also design your direct mails yourself using templates. Let’s find out how these different options can alter your design cost.

1. In-House Designing

If someone is designing your postcard or letters in-house, you can expect that the upfront cost will be almost zero. Hence, it is the most economical option, especially if you have to design invoices or billing statements.

In addition to that, if you frequently launch direct mail campaigns, then you should consider hiring a professional designer for the company. This way, you can save a lot more than paying per design, get things done in less time, and get it edited just like you want it and as many times as you wish.

However, one disadvantage of this method is that your direct mail design may or may not be professional if you hire a cost-effective person with not that much experience or get it created by a non-professional staff member in-house.

2. Templates

After in-house designing, the next most economical option for your designs is templates. You can find various direct mail templates online, and some even cost no more than $10.

Using this option, you can design your direct mail instantly and easily. Most such templates are designed by professionals so that you can display your brand’s image via well-performing artworks.

3. Hiring a Professional

If your company launches regular direct marketing campaigns and needs complex designs for each of your mailpieces, consider hiring an expert. It may cost you a bit more than the above two options, but the outcome would be great depending on your design and copy combined.

You can expect to pay anywhere between $100 to $2000. Mainly, designing agencies cost more, so if you’re just starting, you can also consider hiring a freelance designer with just the right experience.

Direct Mail Copywriting Charges

Copy of your mailpiece is as essential as your designs. After catching your prospects’ attention, if you fail to deliver the message just the way they want to listen to it, it’ll all go in vain.

Just like designs, you can write your copy in-house or get it done by a professional. But since most of your return depends on this part of direct mail, we recommend hiring an expert.

If your copy fails to engage your prospects and get them to take action, then the whole campaign will go in vain.

The rates of copywriting also vary greatly. Depending on the experience and the result your copywriter is promising, you can expect to pay anywhere between $20 to $2000.

And it may seem like a big deal to you right now, but when the results start to show up, you realize it was worth this investment. For example, if you paid $1000 for the copy of one of your direct mail campaigns and generated a great client base, you know it was worth it. And once you get a taste of it, you’ll never settle for less.

However, if currently, you’re a startup, a one-person micro business, or just low on budget, you can consider hiring a freelance copywriter. If you’re willing to do it yourself – making the copywriting cost to zero – then follow a few simple tips like:

• Always mention benefits than stating the features of your products or services.
• Make it all about them.
• Never try to sell. Instead, explain your customers’ problems and provide them with a solution—your product/services.

Direct Mail Lists Charges

Your mailing list vastly depends on what you want to acquire. For example, if you want to launch a new product and market it to your existing customers, your in-house or already built mailing list will work just fine.

However, if you’re just starting out or you want to expand your customer or client base by offering a different type of product or service, then you can consider buying a new mailing list.

To get the new mailing list, you’d need to do market research and study your buyer persona. Then depending on your customers’ demographic details, you can buy a mailing list.

The rates of mailing lists differ. For example, some vendors may offer you the list at $30 per 1000. The charges vary depending on the number of times you want to use that list, the value it’s delivering to your business, and what quality clients it is providing.

The best option for acquiring a mailing list, which we mostly recommend at PostGrid, is building one of your own. It can be beneficial for you in many ways. For example, it will be the most specific. The prospects’ details that you have here are the ones that have already interacted with you before. Hence they know at least a little, if not much, about you.

Furthermore, by getting a more advanced direct mail API, like PostGrid, you can keep your database updated, free from errors, and automate your direct mails’ sending to the audience’s segmented list.

PostGrid helps you integrate your CRM and fetch all of your mailing list data within seconds.

Additionally, how much these mailing lists cost mainly depends on the kind of mailing list you want for your company. For example, the general residential mailing lists formulating the demographic details are comparatively cheaper than the business mailing lists.

You can either rent or buy them, depending on your current need. The charges differ from vendor to vendor, yet you can expect to pay anywhere near $0.03 per record, that is $30 per 1000 records, for the residential mailing list and $0.46 per account, which is $46 per 1000 people for a business mailing list.

Direct Mail Format Charges

Your direct mail can cost you differently depending on the format and size you choose for it. For example, most companies try to keep their mail pieces slightly bigger to stand out in prospects’ mailboxes.

Now, if you choose a smaller mailer, then naturally, the cost will be lower. Apart from that, several other elements, like personalization and customization, can also change your mailpieces’ price. And if you’re doing all the tasks manually in-house, you may also need more printing supplies for a bigger direct mail than a smaller one.

Besides, you’d also need to consider the quality of your printing supplies. For example, what kind of paper would you want to use for your letters, the white glossy one, matte, off-white, or how thick it would be. Plus, most businesses also use different material types – other than paper – to print their message.

This method helps them stand out from the other mailers present in the prospects’ mailbox and increases brand awareness. Like, if you receive a beautiful postcard delivering a message written on a metal or wooden card, you’re more likely to keep it on your table or refrigerator than throwing it off.

Now your visitors may notice it, as at the bottom of the card, the company decided to leave their logo or website details.

But again, you might want to consider the shipping charges of Royal Mail, and that’s per weight.

Direct Mail Personalization Charges

Over the years, everything has evolved, including marketing, which means personalization isn’t an option anymore. If you want good results, you better personalize each of your direct marketing campaigns.

With so much advertising around us, it’s hard to keep the prospects engaged to what you have to say. But if you try a personal approach and try to let them know you already know them, their likes, their problems, and how your product can help them solve those problems.

Although it can be cheaper to send generic direct mail pieces to your prospects, the results you’ll receive will vary considerably.

But personalization can also help you track your direct mail campaigns and increase your response rate. For example, if you add a personalized URL, it’ll be easier for people to visit your website.

To personalize your direct mail, you can either go for variable data printing (VDP), but it would be a little expensive. The other option is an automated PostGrid API that you can use to fetch tons of your data just by integrating your CRM or other systems. Then you can use it to personalize each of your direct mail pieces with the various details of your prospects.

Direct Mail Printing Charges

One significant element that changes the entire cost of your direct mail marketing is printing. The starting per piece printing price is $0.05, going up to $2.00 per piece. But more or less, it depends on the printing vendors and different printing labs that may charge differently.

Apart from this, it’s not the only option you can use to print your mail pieces. You can also get it done in-house. However, if you decide to print all of your mailpieces within your firm, get ready for the extra time and resources you may need to put into it.

For example, besides bringing the big printing machines and hiring staff to print and manage the other task, you’ll also need to invest in the printing supplies. For example, the cartridges, paper stock, colour, envelopes, labels, etc., and then you’ll need a separate space in the office to keep them and continually manage them so that you never run out of the stocks when you need it.

So it’s a lot of work. Plus, once your printing is done, you’d also need to label, fold, and sort them. Then ship those direct mail pieces in bulk.

Another better and easier option is automation API, like PostGrid. It allows you to manage everything from a single dashboard and just give the command to print and send after selecting the quantity and other necessary details.

Once you’ve completed this step, we’ll get your mail pieces printed and shipped within two business days. This way, you save time, resources, and a lot of effort that might go into keeping the stocks, hiring staff, and managing tasks and people. Plus, it’s also cost-effective.

Direct Mail Postage Charges

After printing, postage charges will add the most to your direct mail marketing cost. Although it mainly depends on your particular mail piece’s weight and the distance you have to send those letters to, priority processing can hike the charges.

If you want to decrease your shipping charges, you should go for Royal Mail. Other mail services can be a little more expensive for you.
The rates of Royal Mail start from 85p for the regular delivery of a 100g package. From there on, the postal service offers first-class, second-class, special, international, and next-day deliveries.

Plus, they also provide a payback if they lose any of your direct mails depending on the weight and the category you sent it in. Here’s a list of shipping charges of Royal Mail for all the categories.

How Automation Can Help Drop These Charges Significantly

You can launch direct mail marketing campaigns regularly and head-ache free. You can send direct mails just like emails, including the triggered mails.

All you have to do is integrate PostGrid API with your CRM or other systems, and you can control all of your direct mail marketing campaigns entirely from a single dashboard. From designing your mail pieces to printing and mailing them, it’ll all be our responsibility.

Plus, you will not even need to calculate the charges of everything like design, copywriting, printing, and shipping. We’ll do it all for you and send you the invoice as you prefer to receive it.

With PostGrid automation API, you can save tons of hours, resources, staff, efforts, and money. We also provide an address validation feature, free of cost, with the API. This way, the data of your mailing list is checked against the official database of Royal Mail and is updated each time after a campaign launch.

Hence, you save the money you might otherwise spend on the direct mail pieces sent to the wrong addresses resulting in the loss of confidential information if it’s not a direct marketing mail.

Plus, sometimes your database contains duplicate address listings. That way, you can send identical direct mail to a single prospect twice or thrice. Depending on the number of the same addresses present in your system, your misspending can be excessive.

PostGrid helps you reduce the cost of your direct mail campaigns, the time and effort you put into it and increase your response and conversion rate.

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The post Direct Mail Marketing Costs appeared first on PostGrid UK.

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