Direct mail has been used by the industry for years, but with the rise of social media, smart devices and a desired shift by some toward video, RMD sought out input from a major lender in the space alongside an industry advertising veteran to learn if direct mail remains — or should remain — an important reverse mortgage advertising tool.
A ‘place for physical marketing’
Despite the fact that new media is becoming more pervasive and ubiquitous in daily life, even for seniors, the place that physical marketing materials have in a larger outreach strategy is not going away anytime soon, according to Alec Hanson, CMO of loanDepot. But the way such tools are used needs to be of a high quality, and engaging for the consumer, he said.
“I think there’s absolutely a place for the physical, still,” he said. “We all get junk mail, of course, but I really think there’s going to be a place for the physical marketing that will continue to be relevant. It’s going to take creativity in what you send somebody, that can help break through the noise of just all the junk that also shows up there.”
Remaining conscious about how to use direct mail
For Eddie Herda, who also recently joined loanDepot as VP, creative director and brand strategy, direct mail has been an important part of the industry’s marketing tools for a long time, including at other major reverse mortgage lenders he has worked with.
But considerations about how and when it is deployed should be made that are sensitive to the needs of the senior demographic, he explained.
“I think that direct mail is and will always be a critical piece in anyone’s marketing quiver,” Herda said. “Right now, I do believe folks need to be conscious about what they’re sending out and how frequently they’re sending it out.”
As an example, just picking a timeframe in October or November for a direct mail advertising piece could seem arbitrary to some, but for seniors, that proves to be a month where they typically receive a higher volume of solicitations.
“If I’m sending out mail to someone over the age of 60 In October or November, well, guess what? They’re also getting a lot of Medicare stuff,” he said. “So, now you’re just getting lost in the fold. But I do believe it is critical and relevant.”