Marketing Update 2006
Top Ten Critical Components for Success in the Mortgage Industry
Doesn’t it seem like the mortgage industry is in the news every day? Foreclosures are rising, rates are going up, ARMs are expiring and the media is spreading doom and gloom saying homeowners will default as rates continue to rise and blaming lenders for selling risky loans. It sounds bleak doesn’t it? Actually it isn’t bleak; it’s great news for you! Great news? Yes… you can be that trusted professional among the disreputable lenders.
How you may ask? First, by marketing. Continually remind your past clients and sphere of influence that you’re here for them, they can trust you and that you would appreciate the opportunity to work with their friends and family members. Second, incorporate these 10 critical components into your business vision and plan to achieve the success you want and deserve.
One. Decide how successful you want to be.
Think about this for a moment. How successful do you want to be? Do you want to do one loan a month or twenty? It’s really not about the number; it’s about finding a way to define your success. The Rolling Stones, The Eagles, Elton John, U2 and Paul McCartney all have something in common. Can you guess what it is? No, it’s not that they’re all old guys still on stage performing! According to Forbes, each of these bands made more than $50 million last year. They accounted for 40% of the Top 10 acts. They had a plan for longevity and ongoing income. What’s your plan?
Two. Be very clear about how you will get there.
If you’re happy where you’re at, then don’t change what you’re doing. Did you know that if you only market to your past clients and do nothing else, your business will grow over time, you will recoup your marketing investment and you don’t need to worry about expanding your market share.
But, if you want to expand your market share and increase your business, then it’s important to be clear about what you want to do. Break it down into the number of leads and closings you need to reach your goal. Identify the best way to reach your market and as part of your plan put a marketing component in place to support your goals. It doesn’t have to take much time to add a marketing section in your plan. (If you'd like to download a simple marketing plan worksheet, courtesy of In Touch Today, click here.)
Three. Differentiate yourself.
Two little words that could make all the difference to your career – differentiate yourself. Give this some thought, how do you want to differentiate yourself? Is it a) your niche, b) your approach or c) your follow-up methodology?
Many in the mortgage business choose a niche as a way to differentiate themselves. Those who are successful typically identify with their niche, have a special affinity with the people associated with that niche or have discovered an untapped market they can effectively serve.
You may want to differentiate yourself by how you approach your job and your industry. Most consider refinances a distant memory; however, if you partner with financial planners and focus on asset reallocation you can effectively change how you approach refinances and increase your business as a result.
Another way you can differentiate yourself is in how you work with and follow-up with your clients. Some lenders take extra special care to learn everything there is to know about every client and their family. They then follow up with articles, gifts and items that are of interest to that client. This type of specialized marketing creates a long-lasting, positive impression on clients who will become your referral ambassadors.
Four. Know what kind of business you are (really) in.
There tend to be two camps on this subject – this is a numbers game or, alternatively, this is a relationship game. If you’re in the first camp, you can succeed, but it will come at a much higher cost and take longer than those who cultivate relationships.
Those who are financing a loan are basically looking for two things: 1) a smooth loan process and 2) that they matter to you. Sounds too easy, doesn’t it? If you care about your clients and you demonstrate that to them they will be your clients forever and will rave about you to their co-workers, family and friends. Unfortunately, just doing a good job isn’t enough. You have to stay in touch with your clients on a regular and consistent basis. It’s critical that you remind them of who you are, that you prefer to work on a ‘by referral’ basis and that you’re there when they need you.
Five. Know where the future of the industry is headed.
Look at the current market conditions, what’s happening right now? Rates are going up. That means those with 1% ARMs or expiring ARMs need to refinance now. Are you capitalizing on this trend? Are you contacting all of your clients with ARMs and providing timely advice? If you’re not, your competitors are.
What about tapping into the property investment/foreclosure market? In some parts of the country foreclosures are at an all time high. If you’ve got the right mix of loan products and partner with a Realtor who invests in property and knows the up and coming areas, you could capitalize on this trend. You could be closing loans while your competition is still scratching their heads wondering where their next deal is coming from.
Six. Build a (growth) support team.
Building your support team doesn’t mean that you need to run out and hire an assistant. Instead think of those who can mentor you to higher levels of performance. Time and again, those who are very successful shadow others who are experiencing high levels of success. Sometimes these mentors charge a “fee” to come and shadow them and see how their operation works. Others do it as a way to give back and help others achieve even a small portion of the success they’ve achieved.
Don’t forget to include your past clients as part of your support team. They have valuable insights about what they want from lenders and how you can better serve their needs. Take the time to ask for feedback and then really listen. They know how to make your business better.
Seven. Pick your niche.
We’ve already discussed that a niche can be used as a differentiating factor. A niche can provide another income stream and depending on the niche can also give you a sense of personal and professional satisfaction. You may deliberately choose your niche because of an interest you have, you may fall into your niche due to economic conditions or you may discover an underserved market. Whatever your motivation, choose a niche – become known as a specialist within your industry. You will achieve a higher level of success than those who just do loans.
Eight. Add more value than ever before.
Yes, times are tough. But, those who are successful are already figuring out ways to add value, to distinguish themselves from the pack and to continue to succeed even in this market. How are they doing it? They’re tweaking their business focus and they’re maintaining regular contact with their past clients and further cultivating those relationships.
You can enhance your relationships and add value by providing education and appreciation. If you’re like most lenders, you’ve done first time home buyer sessions. Have you ever done a session to help your past clients learn how to make the most of the equity in their home? Have you offered sessions to your past clients to teach them about investing, buying a second/vacation home or how to capitalize on a reverse mortgage?
Do you show your clients that you truly appreciate them? Do you thank them for their business and referrals they send you? Do you remember them on their birthdays, anniversaries and at holidays? Do you tell clients you really appreciate them? If not, why not?
Nine. Be memorable.
You don’t have to hold extravagant client appreciation events to be memorable. Use both high tech and high touch marketing methods to ensure that you’re memorable to your clients. Here’s an easy way to be memorable: call the husband five days before his wedding anniversary and wish him and his wife a happy anniversary. You’ve just reminded the husband that his wedding anniversary is fast approaching and he can get dinner reservations made and a card and gift bought before the big day. He’s a hero to his wife who’s convinced he never remembers things like wedding anniversaries. You’re a hero to the husband and have created an easy way to be memorable to your client. Then simply follow up by sending a happy anniversary card to the couple.
Ten. Realize true success is more between your ears than anything written in this article.
There is work involved with being successful, but success is really about a mental attitude and set of beliefs you hold. As the saying goes, “if you can see it you can achieve it”. Be methodical and realistic, make a plan and stick to it. Track your progress and celebrate incremental successes.
Yes the mortgage industry is changing. How you respond is key to your success. Are you willing to change the way you’re currently doing business? Are you willing to revamp your marketing methods and further build relationships with your past clients? By incorporating these 10 critical components in your business you can succeed while others fail. It’s a time of change and renewal. Are you ready to succeed?