Once a tried and tested marketing strategy for real estate, letterbox drops are a highly inefficient way of reaching the right prospects.
Today, if you aren’t spending the bulk of your marketing budget on digital strategies, your budget is pretty much wasted. Platforms like Facebook, Google, and Instagram allow you to laser-target your market with minimal cost and effort and know exactly what the return is.
Unlike traditional real estate advertising, it’s easier to get a good idea of exactly who you’re reaching, whether they are responding and taking action in response to your marketing and the return on investment your agency receives.
The Cost of Letterbox Drops
It’s not that letterbox drops are necessarily ineffective. It’s about whether you’re getting a big enough response from doing it to justify the expenditure. Consider the time, effort and cost of printed letterbox drops. The cost can vary anywhere from $150 to $400 for one area depending on the size of it.
Multiplied fortnight or monthly depending on how often you do it, it can easily cost the agency up to $20,000 to $60,000 for multiple areas.
This money would go so much further in terms of generating more listings and growing your brand if it was invested in digital marketing and developing a true digital ecosystem for your agency.
Are Letterbox Drops an Effective Marketing Strategy?
Letterbox drops are arguable handy for some businesses. For example, pizza shops or local takeaways that want to promote their business or draw in local residents with specials. Letterbox drops may also be effective for agents targeting older audiences and passive buyers.
Consider the purchasing decision process. Using a flyer in a letterbox may be a good brand match for selling a $9 pizza special. But is it appropriate for selling a $1.5 million house? While tactics like letterbox drops once played a key role in the real estate industry, they are today outdated and it is almost impossible to understand if they generate a return.
Get More From Your Marketing Budget
Real estate agents have far more advanced tools at their disposal for marketing their brand and their listings to local prospects. Digital tools are more measurable and accountable as opposed to print letterbox material which mostly ends up being placed straight in the recycling bin.
99 per cent of millennials and 89 per cent of baby boomers use online channels to search for property. If you want to target people where they spend the most time, it’s essential to invest in digital campaigns.
Targeted and Measurable Tactics
Letterbox drops are a “spray and pray” tactic. This means once you hand them out, there’s no way of knowing how effective they were or if they were effective at all. A digital campaign on the other hand allows you to target people precisely based on demographics, track conversions and measure the ROI of ad campaigns based on clicks, responses and enquiries.
Agencies can create different kinds of ad campaigns and measure their performance against each other to see what works best. You can also tweak your campaigns while they are in progress to generate better results or update them with new information. You can also utilise valuable data from every enquiry for future marketing efforts.
Need assistance with social media marketing or digital marketing strategy for your agency? Get in touch with the experts at Plezzel.
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