The science of the sale: Pinpointing motivated customers through lead generation technology Thomas McErlaneLead generation technology, proactive marketing, Online lead generation, OLG, Mortgagebot Benchmark,
It's been said that sales is an art. While that might hold true
when a salesperson is face-to-face or on the phone with his
customer, the "gift of the gab" does not really work in the age of
the Internet. With more customers than ever before looking for good
deals on the Web, it has been increasingly harder to find the right
customers, let alone understand what they want or identify the
mortgage product that fits with today's tough lending environment.
We all know that consumer pocketbooks are being squeezed. Gas,
energy and food prices are at an all-time high. The challenges
continue to mount from tougher lending standards to record
foreclosures. As a result, mortgage professionals are struggling to
reach even their recalibrated origination goals. Potential mortgage
customersalbeit tech savvy seem to be on the sidelines, waiting
even longer to make the move to homeownership. This has led to
fierce competition and continued pressure on margins. Couple these
factors with changes on the legislative front, and we are operating
in a brave, new world.
Unprecedented conditions call for innovative technology and
approaches. Enter science to save the day. Lead generation
technology provides the means to more cost-effectively identify
serious customers and accurately segment buyers. It is a proven
technology to generate increased mortgage lending volume. Lead
generation programs can also help capture the rapidly expanding
government-sponsored Veterans Administration and Federal Housing
Administration (FHA) business by identifying and targeting
applicable candidates.
Dissecting the science within the
solution
Technology is where mortgage companies traditionally turn when the
old way of doing things does not seem to work. Mortgage Brokers and
bankers are well aware that more than 80 percent of potential
homebuyers now start their search for a loan online. Thus, it makes
sense to incorporate online lead generation into the marketing
process. It is a cost-effective marketing outreach that is quickly
replacing traditional methods because of its sizable rate of return
and control mechanisms.
Online lead generation (OLG) starts with a targeted online
search that is created with the intention of attracting highly
motivated users. Think of it as online dating for the mortgage
industry. We match borrowers and brokers based on their wants and
needs. A Mortgagebot Benchmark study in August 2007 found that
these motivated users are considered to be a new breed of mortgage
shoppers that have a median income of $85,000 and an average credit
score of about 709, which makes them the right type of candidate
for Mortgage Brokers looking to service a specific customer
segment.
Bidding on keywords in search engines is one of the most
effective methods of finding that right customer. Unlike other
methods that involve a passive action on the part of the Internet
user, consumer intent for a mortgage is much higher when they
actively enter keywords such as "low mortgage rates" into Google or
Yahoo! search engines.
There is a considerable sophistication to the technology behind
the design of what appears to be simple lead generation forms. From
the colors, photos and type used on each form, analytic research
drives the look and feel of each form. A multitude of variables are
taken into consideration, tweaked and tested again and again. It's
through this continual process of testing and analysis that OLGs
are able to produce effective forms that give consumers the utmost
experience in terms of ease of use and personal security. All the
critical information that is collected from the forms goes through
a lead validation system. Key data is verified for accuracy,
equating to higher conversion rates. Lead generation companies
verify all leads before they are sold to their Mortgage Broker
customers. This essentially enables the broker to focus their time
only on people interested in a mortgage and receive precisely
targeted leads from consumers in their desired segments.
Identifying a high-performing lead provider The
key is finding a partner with high quality leads that can be
converted into origination volume. This means targeting and
acquiring niche loan consumers that can even be elusive using
traditional methods. There are dozens of lead generation operators
all promising the same thing. Here's how to find a technology-based
lead generation provider:
•Ask the provider to quantitatively define their
definition of "fresh" leads. Fresh seems to have a very loose
meaning. More than likely, those providers that generate their own
leads and that utilize quality controls for the generated leads
will provide a definitive answer to the fresh question.
•Find out what methods and technology are used to generate
leads. There are a number of ways a lead provider can generate
leads, and not all will produce quality leads. Make sure your
provider is not using any deceptive or incentive-related
advertising that could mislead or attract the wrong types of
customers. Where possible, ask to see examples of the provider's
advertising and their lead forms.
•Be sure your lead provider offers a number of lead types.
For example, instant verification of a consumer's credit score
saves time, cuts costs and increases productivity in the loan
origination process. Warm transfer leads enable busy mortgage
professionals to make immediate contact with phone-verified
consumers. The unique value offered here is in the guaranteed
contact ratios and verified consumer intent which yields higher
closing ratios.
•Ask if the provider can share analytic reports. These
reports allow brokers to understand their return on investment
against marketing dollars expended. Campaigns can then be adjusted
to more effectively address potential customers.
•Get a detailed report from the provider that describes
sound marketing tactics. These tactics should reveal that there are
realistic initiatives that involve consistent and clear
communication with consumers. Make sure that the provider does not
use affiliate or co-registration partners.
•Request an explanation concerning the type of lead
verification system the provider uses. The provider should be
willing to illustrate how they verify data and what is used to
determine the customer's qualification for a loan. This will ensure
that the potential customer is pleased that the broker has captured
their needs, while the broker can seal the deal much faster and
turn that prospect into a pipeline candidate.
•Ensure that the provider recommends the use of a lead
management system. This allows the broker to monitor and develop
specific metrics that could be implemented throughout the marketing
and sales process. This additional technology can serve as a
driving force toward higher origination volume.
A lead provider who offers these advantages is utilizing the
latest technology to unite customers and brokers. At the same time,
online lead generation technology can become the foundation from
which brokers build a database for future referrals.
Evolutionary enhancements
Lead generation technology is continually improving.
Mathematicians, engineers and software designers are creating new
platforms to improve analytics, disseminate data and use innovative
search techniques. As new technology is developed, we can expect
lead generation to continue to be a critical driver of mortgage
origination.
Thomas McErlane is general manager of www.low.com. Headquartered in Los
Angeles,www.low.com is part of www.oversee.net, an online
marketing solutions company. He may be reached by e-mail at
[email protected].
