Looking for a proven way to capture your fair share of the reverse mortgage market? If you haven’t already, it’s time to put these simple, yet highly effective methods to work for you: identify the right target, develop a compelling mail piece, and build a test campaign to fine tune the best long-term approach.
Identifying the Right Target:
The obvious is a given: homeowners 62+ with equity. But you have to look deeper than that. What is it that will motive these seniors to take action? The common answer is money. Perhaps it’s their personal debt that needs addressing: are they piling up debt in exchange for making their monthly mortgage payments? Or worse, are they paying late on their mortgage every month just to maintain their lifestyle? Both of these attributes can easily be included the mail list criteria, and should be addressed in the content of the letter as reasons to respond (more on that below).
Developing a Compelling Mail Piece:
As mentioned, you need to address the homeowners need for money, either as a lump sum, or monthly cash payments. Emphasize how it can be used to pay off debt, healthcare expenses, or even stop a potential foreclosure on their home. It’s also important to stress that they can free themselves from the burden of monthly mortgage payments, and they can still retain the right to will their home to anyone they wish (i.e. family members).
Seniors are also especially cautious about being taken advantage of, and mortgage offers can be confusing. Try offering a free information packet that they can read on their own terms, on their own time. Also, consider a free $50 gift card call as an added incentive to ask for the free information (as always, some restrictions apply).
Set-Up a Test Strategy:
So, what is the key motivator to get people to pick up the phone and call? Is it the need to pay-off debt? Or perhaps it’s to address their struggles to pay the monthly mortgage payment. The answer is that it all depends. Remember, marketing, and direct mail in particular, is just as much of an art as it is a science.
That’s why setting up a test campaign is a smart way to demystify the process and gain valuable knowledge to what’s working, or what may be under-performing. I recommend at least an A/B test using two separate list criteria: one with credit card debt, and one with late mortgage payments. The letter can be the common fixed variable. Once the best performing list is identified, a second test can be used with two different letter versions. Over a short period of time, you will know the right combination to use for generating the best possible results going forward.
If you’re ready to put your direct mail campaign into high gear, call me today for a free 15 minute consultation. I’ll help you identify the right targets, develop a compelling mail piece, and set-up a winning test strategy to maximize your success!