I've been going back and forth on this for months. Spent about $2,800 on a direct mail campaign targeting property managers in the Charlotte metro area - nice postcards, professional design, clear value proposition. Got exactly two responses. Meanwhile my buddy swears by cold calling. What's actually working for you guys right now?
Cold Calling vs Direct Mail - What Actually Works in 2024?
Direct mail worked great for me 10 years ago but response rates have cratered. I switched to a hybrid approach - I send a brief introductory letter first, then follow up with a phone call 5-7 days later referencing the letter. My conversion rate went from about 2% to closer to 8%. The letter gives you a reason to call that isn't pure cold outreach.
Cold calling still works if you're strategic about it. I pull lists of commercial properties that recently had rate increases using public utility commission data, then call those businesses specifically. Hey, I noticed your utility just raised commercial rates 12 percent - I help businesses like yours make sure they're not overpaying. That opener gets attention.
How are you getting the rate increase data? Is that something the PUC publishes or are you buying lists?
Most PUCs publish rate case decisions publicly. I just set up Google alerts for rate increases in my territory. When Duke Energy got their 8.7% bump approved last fall, I had a calling list together within a week.
Good discussion. I'll add that the best marketing is always referrals from satisfied clients. But you need clients first to get referrals, so the cold outreach question is real. The letter-then-call approach Vince described is probably the highest ROI method I've seen across our membership. One thing I'd caution against is buying generic business owner mailing lists - they're expensive and untargeted. Build your own list from property records and utility territory maps.
Amen to the referral point. About 70% of my new business now comes from existing clients recommending me to their contacts. Took about 5 years to build that pipeline though.