If you are buying leads, telemarketing or sending direct mail, you are already aware that not all leads result in sales. In fact, statistics show that only 21 percent of leads will end in a sale. But what if you could increase your conversion rate by 20 percent? Ultimately, you could expect to see greater revenue, more clients, and hopefully, an increase in referrals. Accomplishing this is not difficult. There are some great strategies you can implement in order to increase your conversion rate with purchased leads.
Think about how you handle your leads currently by considering the following questions:
►How soon after getting a lead do you make contact?
►If you cannot reach your lead, how often do you try again?
►Are you really selling your leads or just taking orders?
►Do you purchase real-time leads at optimal times?
By answering these questions, you can take note of areas where you can improve your lead responsiveness, something that is critical in today’s competitive marketplace.
There are a number of chilling statistics for mortgage brokers who don’t get in contact with their leads soon after receiving their information. For instance, take a look at the following:
►"… research indicates that leads responded to within one minute result in a 391 percent improvement in conversion rate.”
►"… by being the first to contact a lead, you are 238 percent more likely to close the transaction.”
Quite obviously, response time is critical if you want to improve your conversion rate. As such, you want to be the first person to make contact with your lead, and the sooner you can do it, the better.
How persistent are you in trying to reach your leads? Amazingly, after taking or making one phone call, 50 percent of brokers never try to reach a lead again. It’s of no use to spend good money on leads if you’re not willing to engage in follow-through.
Research indicates that by contacting your lead six times, your chances of selling your prospect are 93 percent. So, be proactive and be willing to contact your lead as much as six times to get them on the phone. After making your six calls, turn your attention to better prospects—don’t waste time and energy trying to get the remaining seven percent on the phone.
Work off hours
Studies show that leads received outside of the classic workweek (9-5 Monday through Friday) are 11 percent more likely to be converted than the average. As a caveat, remember that you should always be available to contact your leads. If someone submits an inquiry at 9:00 a.m., you don’t want to wait until dinner time to call back.
Increasing your mortgage lead conversion rate by 20 percent is not an unrealistic goal. However, it does require you to make a strong effort. All too often, leads are wasted and Cost-to-Close increased because of mismanagement of leads. So, after making sure that you have purchased the best leads you can find, make immediate contact. Studies show time and again that making a phone call as soon as possible is a key tactic for upping conversion rates. And if you cannot reach your prospect, don’t quit. Instead, continue calling—six times at most—until you make contact. By following these steps, you’ll stay ahead of the majority of your competitors, close more sales and generate higher revenue.
K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 13 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail [email protected]
This article orignally appeared in the May 2014 edition of National Mortgage Professional Magazine.