While interest rates may be on the rise, we all wait peacefully to see if HARP 3.0 is actually going to come to fruition. If rates do continue to rise, the mortgage market will shift to a purchase and cash out refinance market as it always does. While this may scare some people from marketing, others continue to market successfully. How do they do it?
Stick with what works. Direct mail marketing has been on the rise because it is a mainstay in the mortgage marketing community. Also, as the market shifts to a purchase market, you may find yourself trying out new lead sources. Internet leads work well for purchases, but you have to be open to competing with others for the business. If you don’t want to compete, you will need to generate your own leads or pay a premium for exclusive leads like live transfers or pre-screened purchase leads. Costs vary on these types of leads, but they are the only way to truly know when someone is in the market to purchase a home and looking for financing.
Mail needs to be dropped consistently in order for it to work properly. People who drop mail three to four times per year usually get varied results, while people who drop mail weekly or bi-weekly seem to have much more consistent results. If you choose to go with “leads,” then make sure the company you work with has a backup lead type in case the first type your try does not work. Good luck this year! The mortgage market is holding strong and looks like it will grow steadily throughout 2014.
TagQuest Customer Spotlight
Each month, we like to talk with our clients and find out how their campaigns are going. Here’s what we heard from one of our mortgage professionals in Kentucky on the results of their direct mail marketing campaign:
►Five thousand mail pieces sent out in December
►Mailing type: HARP/FRM refinance
►Response rate: 1.28 percent
►64 totals calls (and still coming in as this article went to press)
►Eight applications so far
Highlights of campaign that work well for you: “Our volume last year increased 18 percent from the previous year.”
Highlights of growth that could appeal to other loan officers or offices: “We were able to increase our staff from the direct mail marketing by 50 percent due to the success of the direct mail campaign at its peak.”
—Donnie B., Mortgage Broker, Louisville, Ky.
Medford, Ore.-based TagQuest is a full-service marketing firm created specifically for the ever-changing business world. TagQuest assists companies with their direct marketing, advertising and branding needs, and knows what it takes to generate quality customers and, most importantly, how to retain those customers for years to come. TagQuest brings forth a unique opportunity to utilize our experience and expertise in varying consumer sales and marketing environments. For more information, call (866) 376-5540 or visit Tagquest.com.