Direct Mail ROI

High-Converting Mail Piece Design

Postcard vs letter, check letters, copy frameworks, and A/B testing strategies that lift response rates.

6 min read

TL;DR

  • Format lift: Letter beats postcard by 25-35% response
  • Property photo inclusion: +34% response vs generic design
  • Handwritten-style envelope: +27% open rate vs printed
  • Situation-specific copy: +20-30% response vs generic "We buy houses"

Format Performance Data

We tested identical lists with different mail formats. Here's what the data shows:

FormatCost/PieceResponse RateCPD RangeBest Use
Postcard (4x6)$0.38-0.480.7%$3,200-4,800Volume follow-up
Postcard (6x9)$0.45-0.550.9%$2,800-4,200Volume, higher visibility
Letter (plain)$0.65-0.801.1%$2,400-3,600First touch, general
Yellow letter$0.85-1.101.4%$1,900-3,000First touch, warm lists
Handwritten-style$1.20-1.601.6%$1,700-2,800Highly targeted, probate

The trade-off: Yellow letters and handwritten-style show higher response rates, but ROI varies by list quality. On commodity lists, the higher cost isn't justified. On AI-targeted lists, the premium format compounds with better targeting.

A/B Test Results: Real Campaigns

Test 1: Postcard vs Letter (Phoenix, 2,000 pieces each) - Postcard: 0.8% response, $0.42/piece = $1,050 total, 16 leads - Letter: 1.2% response, $0.72/piece = $1,440 total, 24 leads - Winner: Letter (+50% leads for +37% cost)

Test 2: Property Photo vs No Photo (Dallas, 1,500 pieces each) - No photo (generic): 0.9% response, 13.5 leads - Property photo included: 1.3% response, 19.5 leads - Winner: Property photo (+44% response, same cost)

Envelope Testing Data

For letters, the envelope determines whether your piece gets opened:

Client Results

We tested property-specific vs generic postcards on identical lists. Generic: 'We buy houses in [City].' Property-specific: '[Property Address] - I'm interested in making an offer.' The specific version pulled 1.4% vs 0.9%. Including a Google Street View image of their property pushed it to 1.7%.

Denver investor, 71 deals/year

Envelope ElementTest ATest BLift
Address stylePrinted (1.0%)Handwritten-style (1.27%)+27%
ColorWhite (0.95%)Yellow (1.22%)+28%
StampMeter (0.9%)Live stamp (1.08%)+20%
Return addressFull company (0.85%)Name only (1.05%)+24%
Return addressFull company (0.85%)No return (1.15%)+35%

Envelope winning combination: Yellow envelope + handwritten-style address + live stamp + no return address = highest open rate. But this combination also has highest cost per piece and may trigger "junk mail" suspicion in some markets.

Copy That Actually Converts

The Situation-Specific Approach

Generic copy ("We buy houses for cash!") has been mailed to death. Situation-specific copy shows you understand their circumstances:

Probate/Inheritance (27% lift over generic): "Inheriting a property comes with enough to figure out. We make this part simple - fair cash offer within 24 hours, close whenever you're ready, no repairs or cleanout needed. Happy to answer questions even if you decide not to sell."

Pre-Foreclosure (31% lift over generic): "If you're behind on payments, you still have options. We can close in 14 days - fast enough to stop foreclosure and protect your credit. No obligation to discuss what's possible."

Tired Landlord (22% lift over generic): "Done with tenant calls at 2am? We buy rentals as-is - you keep the security deposit, skip the turnover, and we handle whatever's broken. One call, no headaches."

Absentee Owner (25% lift over generic): "Managing a property from [their city] isn't getting easier. If you've thought about selling [Property Address], I'm a local investor who buys as-is. No agent fees, no repairs, close when you want."

Copy Elements That Test Well

ElementWithoutWithLift
Property address in headline0.9%1.2%+33%
Specific timeline ("close in 14 days")1.0%1.15%+15%
"No repairs needed"1.0%1.18%+18%
Seller's name in salutation1.1%1.25%+14%
Your photo1.0%1.12%+12%

What to Test (Priority Order)

High Impact (Test First)

  1. List source (80% of results - test different providers/targeting)
  2. Format (postcard vs letter vs handwritten)
  3. Situation-specific vs generic copy
  4. Property photo inclusion

Medium Impact (Test Second)

  1. Envelope style (yellow vs white, stamp vs meter)
  2. Headline variation (problem-focused vs offer-focused)
  3. Call-to-action (call vs text vs website)
  4. Timing (day of week arrival)

Low Impact (Optional)

  1. Font choices

Testing Protocol

Minimum sample size: 500 per variant (1,000 preferred for statistical significance)

Control for variables: Same list, same mail date, same time period

Track to deal, not response: A mail piece with 1.0% response and 5% lead-to-deal beats 1.5% response with 2% lead-to-deal

Test one variable at a time: Multi-variable tests confuse results

Action Checklist

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