New business is the lifeblood of the mortgage industry. If an organization is not actively seeking new business prospects, they are preparing to fail. A lender’s database may be teeming with potential customers but organizations often do not know how to effectively market to them.
There are several CRM processes originators can use to more effectively transform leads into customers. First, mortgage firms need to make sure their CRM database is consistently updated with new prospect leads. Upon meeting a new prospect, lenders should add the prospect’s contact information so marketing campaigns can begin immediately. This is the best way to guarantee the lender remains in the front of the prospect’s mind. Next, originators should ensure the marketing campaigns are relevant to each prospect. Many make the mistake of sending the same generic materials to their entire database of prospects. These mass marketing techniques do not give potential customers a clear reason to work with an organization and may suggest the lender does not fully understand their needs. There is a small window of time to capitalize on a connection with a prospect, and one-to-one marketing that produces relevant, timely and strategic communication make it clear why a lender’s offerings meet customers’ needs and why it is a perfect time to engage.
Originators can execute one-to-one marketing programs, which customizes marketing messages to the individual recipient, improving response rates and results, by utilizing Big Data. For example, if interest rates drop, anyone paying a higher rate on a home loan is a viable prospect and may be very open to an offer to refinance. Modern CRM techniques like this offer more relevant and targeted marketing capabilities by organizing Big Data in a sophisticated way that is actionable and relevant. Outdated mass marketing techniques do not provide the same level of results despite their popularity among some lenders.
After the engagement with a prospect is complete, another important element of converting prospects to customers that originators often miss is a reporting and analysis component. Most lenders know what they are trying to accomplish, they just don’t know how to accurately measure the success of a marketing strategy. Conversion rates and clear reporting will show the impact of marketing programs. Incomplete CRM and mass marketing systems provide reporting on the number of marketing materials sent. A TRUE CRM system provides specific metrics identifying the return-on-investment for each marketing piece sent, and how these results compare to peers and contribute to internal goals. This capability enables mortgage companies to modify their existing marketing programs to achieve greater results.
How lenders can gain new business is not a secret. Modern CRM systems utilizing customized and relevant marketing and a comprehensive analysis of the results is a competitive edge that enables mortgage firms to gain market share against old-fashioned competitors who are using outdated marketing systems.
About The Author
Jim Blatt is the CEO and co-founder of St. Louis-based Mortgage Returns, a provider of database-driven, automated marketing solutions for the mortgage industry. For more information, please visit www.mortgagereturns.com.