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Ten steps to an effective 2008 mortgage marketing plan
Everyone knows they need a marketing plan, but many don’t know where to start. .
Every year, I sit down and draft my goals for the following year -- how many loans do I plan on closing, how many are purchase loans, refi’s, lines of credit, etc. However, all of this will be directly affected by what my marketing plan and budget will be. Sitting down and staring at blank piece of paper wondering where to begin is usually a daunting task so I wanted to provide some tips that I use in my business.
First, you’ll want to define your earning goal. How much did you make last year? How much do you want to increase this year? Where are you going to find that extra income? Here are a few tips to get you started:
- Define your message and goal
What do you want your marketing message to be? Are you planning on increasing your client base this year? Are you planning on closing more refi’s or purchase transactions? Whatever it might be, have a formal written business plan for your production. I have very specific goals in mind on every marketing piece I send out. I’m the first one “on the block” with a new loan product or service. Each marketing piece should be clean, concise and directly to the point. My marketing piece also has to mimic my market. Hopefully, nobody knows your area better than you, that’s why you need to consider what your market will bear in relation to your advertising.
- Identify your target market
Was your area subject to fast home sales at low interest rates? If so, think about specializing in refinancing people out of ARM’s that are scheduled to reset in the next 3-6-9 months. You could become the “refi expert” in your area. Distinguish new markets and new business sources every year.
- Set a goal for each marketing campaign
Different marketing pieces should have different goals. Some of the ads you create don’t even need to talk about loans or rate options. Try new and innovative marketing ideas. Create a unique “brand” identity that separates you from others in your market. Send postcards to subdivisions that have seen rising home values that contain the dates of their homeowner association meetings for the next year. What is the goal? To have at least a few homeowners keep that postcard handy. One of them may decide to refinance or buy a new home in the coming year and contact you. Other marketing blasts might have a shorter goal.
- Track your results
One of the largest pitfalls that many will fall into is that they will spend hundreds and sometimes thousands of dollars to send postcards, advertise in their local publications but they won’t put in place any tracking mechanism. Tracking the return on your investment is paramount to making wise decisions in where you’ll spend your money. It doesn’t have to be anything fancy. Some of the codes I’ve used have been as simple as “EDMTHQ207” (Edmond Monthly 2nd quarter 2007). By putting these codes on all of your ads, you’ll want to get into the habit of asking clients how they found you in the first place. Be specific and log every result in a spreadsheet. You’ll be surprised at what you think is working versus what your results truly show at the end of your campaign.
- Where can I use technology to improve my exposure?
Online marketing such as ongoing e-mails, banner ads on local news station websites and Craigslist are inexpensive. They can also be extremely effective and easy. But, don’t forget about the methods that work for you right now such as networking, newspaper ads and targeted postcards (with your website’s URL, of course). After all, when markets change, traditional ad budgets are one of the first things to get cut. That makes sense to a degree as long as you’re redirecting your attention to online methods that are equally as effective. Should you cut 10% of your print budget and direct all potential clients to fill out an online 1003 to save you time and resources? Maybe. The point is, scaling back in efforts and expense can cost you far more money than you’re saving in the long run.
- Find the cost of gaining a new client vs. keeping previous clients
I talk to a lot of LO’s that were so busy in the hot market days that they didn’t make time to touch base with old clients along with asking for referrals. If you fall into that category, 2008 may be the year to win those clients back. Start up a campaign using XSellerate that sends newsletters, tips, recipes, or just e-mails about your current loan offerings. You may also want to set a goal for yourself to call five old clients a day, just to see how they are. It will show you care and you never know if they’re shopping again. Plus, one loyal client could easily refer three or more new clients to you over the course of several years. That’s a triple return on your ad investment.
- Be flexible
Plans change. They have to in today’s market. If you find that ideas that seemed brilliant a few months ago aren’t so great now, change them. After all, your marketing plan is a living, breathing tool that should help you run a more focused, healthy, and profitable business.
- Learn, study, and totally master the core mortgage product you sell.
Stay abreast of industry trends by reading books, listening to tapes and attending seminars. Stay current with essential tech tools, such as origination software, AU, and database management. Seek out a mentor or coach to help you reach the next level.
- Constantly ask for referrals.
Refer customers back to real estate agents, builders, and others whenever possible. Create a memorable/positive impression with first-time customers so that they will be enthusiastic about referring you to others.
- Never forget to practice good Customer Service.
I make proactive follow-up calls to borrowers to inform them of there loan status before they call me. I personally attend my loan closings to ensure the transaction ends smoothly and I make it a practice to under-promise and over-deliver, especially for loan closing times.
For me, the most important step to getting a plan together is to critically ask myself what it is I’m really trying to do. If your goal is to simply close more loans in 2008, you may have a hard time. However, if your goal is to close one more loan a month, it’s a little more digestible. If you have clearly defined goals, the rest will fall into place.
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