Selling mortgages is not rocket science: Synergy at the settlement tableDave Hershmanadditional business/relationships, real estate agents, marketing and referral system
In no place within mortgage originations sales do I find Woody
Allen's adage, "Ninety percent of life is just showing up," more
relevant than in visits to the settlement table (or signing table,
if you are in the western part of the country). In my schools and
speaking keynotes, I regularly survey my audience to discover how
often originators attend settlements on a regular basis. The
average is 10-15 percent of them do. Bear in mind the fact that
almost all of them feel that it would be a good idea with regard to
their marketing efforts. Loan agents don't accomplish the task more
often because they don't have the time. What I would like to focus
upon in this article is not the 85 percent that are doing it wrong
by not showing up, but the 15 percent that are doing it right by
showing up. Woody Allen's adage applies to those who show up at the
settlement table as well. Originators have been told that going to
settlement is a good idea. They then show up. The problem occurs
with the methods utilized to garner additional business through
their efforts. The following is a sample of typical comments:
•"I try to arrive at the beginning so that I don't have to
stay long."
•"I just make sure that there are no problems with the
papers."
•"I hand out business cards and ask for referrals."
This is not to say that showing up and being a trouble-shooter
is unimportant. Originators have no idea how many relationships
they have lost because a problem cropped up at settlement and the
participants pointed the blame at the only actor not present (which
is truly human nature). One of the rules of maximum synergy
marketing is that every action can have two objectives. Going to
settlement and looking responsible is one thing. Garnering
additional business/relationships is another. Just being there
differentiates yourself from your competition in a positive way
because real estate agents are not used to their loan officers
showing up.
What is wrong with handing out business cards and asking for
referrals? Throughout our sales lives, we have been told to ask for
business, specifically more referrals, from present and previous
customers. Under the rule of two objectives for every action,
handing out cards seems to make sense. Yet there is another rule of
marketing synergy: some targets, tools and actions are more
effective than others. Giving everyone business cards is easy and
can result in additional loans once in a while. It hardly
constitutes a specific and definitive marketing and referral
system. "I make my living off of referrals" is a statement that
often accompanies this action. Do you really think that your
customers are interested in such a "me" statement? They are
interested in how you can help them and help those that they refer
to you. This is demonstrated through the delivery of value and
invoking the law of reciprocity. What of value can we deliver at
settlement that will enable us to make this statement—"Do you
know anyone else who can benefit from this?"
More often than not, originators will let me know that they do
provide a gift at settlement. Typically, the gift is a houseplant,
flowers or champagne. Are these of value? Absolutely! Can we
deliver more value with this gift? Absolutely! The third rule of
maximum synergy marketing we will introduce today is
this—every action can be made more effective by adding
additional synergy. Let us now see how this rule can apply as we
deliver our flowers to settlement. You are purchasing the flowers
with your own money. You have used your most precious resource
(time) to make the purchase and deliver the gift. Why not say that
the gift is from the real estate agent (or settlement agent if a
refinance)? Does this take any more time or effort? You have added
a second objective to the same action: giving value to a partner
who is likely to be more effective within your marketing system
than your present customer.
Now, let's take a look at the gift. We will stay away from the
question of whether the gift could be something of greater value
(not necessarily of greater cost) that will help invoke a stronger
reciprocity statement. It would be easy to uncover gifts that are
more substantive from the point of view of homeownership. Instead,
we will focus on who sold us the gifts. We are not against florists
or liquor storeowners. It is just the fact that you have spent good
money purchasing something. Why not purchase it from someone who
could deliver additional benefits to you? Do you expect to get
referrals from those who hang out at the liquor store or Wal-Mart?
Try uncovering a value-related item that might be delivered by a
party whose long-term relationship would be part of your marketing
objectives. Is there something that you could purchase from a
financial planner, accountant, insurance agent, etc.? Perhaps you
could put together a homeowner's kit of products from a store that
is part of a large corporation you are targeting for a corporate
affinity program. In keeping with our long-term goal of adding as
many synergy partners as possible, the gift might come from that
player as well as yourself and the real estate agent. In your
search for value delivery systems, you might actually uncover a
settlement gift that costs nothing from a monetary standpoint but
delivers better long-term value to your clients and much better
long-term relationships to you.
And don't forget synergy rule number three—some targets
are more effective than others. While everyone is important at the
table, there is one long-term target more effective than any other.
If you e-mail me (
[email protected])
with the right answer, I will send you some free marketing
materials. Show up at settlement to solve a few problems? Sorry,
Woody. Ninety percent of life is what you do when you get there!
You have precious little time to affect your marketing actions. Why
not make every action as effective as possible through maximum
marketing synergy?
Dave Hershman is a leading author and top speaker for the
mortgage industry with six books, including two best sellers for
the Mortgage Bankers Association of
America. His mortgage school is the only comprehensive,
advanced curriculum in the industry. For a schedule of classes,
free marketing samples, speaking information and articles by Dave,
visit www.originationpro.com or
call (800) 581-5678.
