Building a Marketing Plan Utilizing Advanced TechnologyAeron StedmannInternet, online, e-commerce, web-based originations, lending technology
We are in the midst of momentous opportunity and change in
perhaps the fastest moving revolution to reach virtually every part
of the globe. The revolution and opportunity created by the
Internet and E-commerce calls for a unique, strategic, and
well-focused marketing business plan in order to compete in the
mortgage market, both locally and globally. With increasing
competition and access to information, consumers are able to
explore and invest with companies at the touch of a keyboard or
click of a mouse. What this means for you as a business person is
that you will have to carefully plan and design your approach to
avoid getting caught in the many pitfalls and traps that exist in
the new virtual marketplace. This article will attempt to provide
you with a concrete marketing plan to guide your business
successfully into a technology-driven, moneymaking machine.
Deciding Where to Start
There are several things to keep in mind from the start and
throughout the Internet business planning process. First, the needs
of the online consumer are different. Consumers are becoming more
adept at locating information and making informed choices regarding
their purchases. They are also looking for solutions that are
convenient and offer the lowest prices. To be successful, you must
orient your services so that the consumer receives efficient
service and competitive prices to ensure future and potential
business. You will also want to incorporate benchmarks and
evaluation tools from the beginning to remain on track and headed
in the right direction.
One of the toughest parts of designing a business plan is deciding
where to start. This is especially true when the marketplace is
constantly changing, and when careful planning is essential to keep
marketing cost-effective. For example, new technology and
investment opportunities such as palmtops, IPO money, automated
marketing solutions, search engines, and E-partnerships all make
for a complicated scenario. So, assessing and determining the
starting point for the business plan itself is the crucial first
step.
The most logical way to approach the assessment process is to start
with the fundamental goals. Then, collaborate with your business
partners and consultants to bring in the skills and understanding
on how to get there. This involves a thorough analysis of the
capabilities of the technology, personnel, and market that you
chose. Many times, people are unaware of the full capabilities of
technology such as newer javascript or other interactive features
that will make your Web site stand out above the rest.
Cost-Effective Marketing
Performing an analysis of the origination of your clients will
assist you in determining the most cost-effective means to increase
business, and will also assist you in accurate budget planning. For
instance, what percentage of your business is procured through
referrals from networking, real estate agents or CPA's? What
percentage is repeat business or referrals from previous clients,
and how much of your business is drawn in from advertising or
telemarketing? A good suggestion is to assign codes in your
database so that this information will be easily retrieved to
assist your future planning.
Increasing your ability to be cost-effective first involves
determining your actual costs. This is the point where you want to
do an assessment of the previous year's clients. Investigate where
they came from and how much you spent on each type of marketing,
such as direct mail, telemarketing, or other active marketing
programs. Then, figure your costs for each, and calculate how many
loans you actually closed for clients who were acquired via each of
those means. That is your customer acquisition cost for those
segments of your business.
Now, figure what your acquisition cost was for clients who came to
you as repeat customers or from referrals. You may find that you
spent more time getting a new customer than, for instance, getting
a customer you obtained through a referral. Given these figures and
your income goals, where does it make the most sense to invest your
energy and marketing dollars to increase your business? This is an
important step in the business plan, especially when you consider
that now there are many more opportunities for marketing,
generating leads, and closing deals that may prove to be as or more
cost-effective than these traditional methods.
Interactivity and Access to Information
E-commerce and interactive technology provide tremendous
opportunities for the mortgage business planner. Imagine recruiting
25 loan agents in a week using net branching as a model, and then
having a loan agent in the field equipped with a palmtop or laptop
with a complete 1003, DO/DU, and LP credit reporting system. Then,
suppose the customer is able to sign documents online using digital
signatures. You may never end up sending another loan package or
tracking down the customer in order to close the deal.
In addition to the connections and marketing capabilities of the
Internet, wireless communication, and other technology that has
expedited and improved marketing capabilities, there are other
marketing solutions that utilize automated telemarketing to create
niche markets, affinity groups, or referral sources. Other
marketing possibilities involve having the loan agent interface
with the client online. This is feasible by utilizing your Web site
as a storefront, and by using processing software behind the 1003,
a mini application in front of that, and access to credit reports
online or through your Web page, with the capability to send it
directly to Freddie Mac or Fannie Mae.
Co-Marketing Online
One company that combines these technologies into a comprehensive
easy-to-use system is LoanCity.com, which locates
lenders for loans. We have many clients using the system who find
this to be an easy lender solution. It saves the broker time, and
helps them boost their productivity through:
* A search engine that instantly matches the right loan to their
customers
* Searching through real-time rates for more than 50,000 loan
programs
* Giving the broker information on more than 50,000 loan programs
by displaying the underwriting guidelines for all programs at the
time of search
LoanCity enables the broker to be more efficient because it is a
one-stop shop for loan selection, matching, underwriting, docs, and
funding. The broker can get access to virtually the entire mortgage
marketplace, but is also able to focus on doing business
electronically. LoanCity coordinates the technology, so that the
brokers can choose to do business in a method that is either all
electronic or traditional.
Efficient Automated Marketing
There are new automated marketing solutions that provide leads and
generate marketing automatically. For instance, a 24-line
GoldSprint automated voice mail broadcasting system will call
200,000 individuals per month, directing them to your loan agents
at a 0.5 percent response rate, or to your Web solution with a
three to five percent average response rate. You can also use the
same system for business-to-business marketing to market business
partnerships.
In addition, you can add an interface that aids your Web site
solution for business-to-business marketing and for recruiting
E-partnerships. Data mining is also facilitated with the
collaboration of other company's databases while also co-marketing
and creating mutual benefits between customer bases. Furthermore,
there are different laws regarding E-commerce and electronic
transfer fees that allow you to give income to the referring
E-partnerships.
Summary
Successful Internet and advanced technology marketing can be
accomplished with hard work and close attention to detail. It is
important to keep up to date on not only the technology but also
the degree to which the technology is generating the leads and
deals that facilitate increased business. While marketing is still
based on the same principles it was 10 years ago, the tools in your
hands today are much more valuable.
Aeron Stedmann is a nationally-known keynote speaker on
technology, e-commerce, and marketing. He is the author of
Database Marketing, and has developed automated telemarketing
systems and unique e-commerce business solutions. He is currently
vice president of marketing for Green Lizard LLC, a Napa Valley,
Calif.-based Internet business. Mr. Stedmann may be reached at
(707) 942-1469, www.stedmann.com, or e-mail
[email protected].
