Henry Ford said, “A man who stops advertising to save money is like a man who stops a clock to save time.” Wise lenders that have weathered the storm don’t stop marketing and instead increase their volume to keep business flowing in. Lenders who panic and stop marketing put themselves in a bad position if their referral base slows down and are left with an empty pipeline. Even though rates are higher, there are still affective ways to generate purchase and refi business through targeted direct mail campaigns.
Question: How do I successfully drive new refinance and purchase business in my doors in today’s environment?
Answer: Triggers have maintained the most consistent return when market rates are both high and low. Purchase triggers are the most effective approach for new purchase business due the fact that no lender will pull credit on a borrower without asking pre-qualification questions first. If someone is getting their credit pulled there’s a great chance that they are aware of the rates today and has some benefit to move forward. Purchase triggers take the guesswork out of who is buying a home. With refi triggers, there are overlays you can add to further target your perfect borrower like credit score, mortgage balance, loan type and LTV. Using direct mail as a vehicle to drive your offer, the borrower is calling for a second opinion to see other options. This is your chance to capitalize and offer the borrower the best deal they can receive.
Apply the solution
It is optimal to drop both refi and purchase trigger campaigns simultaneously, as the refi trigger will bring in initial revenue, while the purchase trigger pipeline builds as the borrower has to find and close on their home. By marketing in tandem, you can have a steady flow of business to feed both your refi and purchase specialists. Telemarketing will yield immediate results, however, you will experience more competition. You must be prepared for this if it is your only marketing vehicle. Through direct mail, you will hit 100 percent of the available universe and tap into those borrowers who are not bombarded with telemarketing calls.
To obtain the best results, there a couple of things to consider. One being the amount of pieces your dropping, where you’re dropping them, and what loan officers you have fielding the calls. Any of these can affect your return-on-investment (ROI); however, the most important to consider is the loan officers fielding the calls. We have found that LOs who are savvy with Internet leads or lead transfers fare the best at handling these responders. If they are not experienced in working competitive leads, it could lead to disaster. The rule of thumb when marketing both refi and purchase triggers is a minimum of one loan for every 1,000 pieces mailed. If you can put this simple practice into place, you will keep a pipeline full of purchase and refi business that you may have missed out on.
Jake Soley of Titan List and Mailing Services has specialized in mortgage-specific marketing since 2006. Jake’s commitment to educating his customers on the proper steps to take when launching direct mail programs has catapulted him as a leader in mortgage direct mail. He may be reached by phone at (800) 544-8060, ext. 209 or e-mail [email protected]