New Game - New Rules - New Tools
by Dave Savage
At first, there were just rumors about the Internet. Then there was buzz. Then suddenly, in the last 6 months, the floodgates of new national and Internet based lenders came rushing into our market. Like a snowball, rolling down a hill, these changes came fast and they're moving faster every day.
Now we are faced with the most dramatic market changes in the industry's history!
Flush with a seemingly bottomless pit of advertising dollars from recent IPO's, scads of Internet companies are using a barrage of TV, radio, direct mail, internet advertising and more.
So, how do you fight back?
How do you generate leads, capture clients, create new referral partners, maintain your current relationships and keep your profit margins in this competitive arena?
How do you compete…
…When your competitors are spending millions of dollars to persuade consumers that you are bumbling, incompetent and a bit unethical?
…When your clients (with the click of a mouse) can get hundreds of lenders competing for their business?
…When your competition gives rate-quotes so low you couldn't offer that deal to your own mother?
One of the solutions is to tap into the incredible leverage that technology offers you in order to create a new competitive edge.
Each month, in this article, we will be exploring technologies like Customer Relationship Management (CRM), email, auto responders, cutting edge processing software, loan analysis software, new presentation tools, Internet tools, web sites, voice broadcasting, and more.
For our first series of articles, it makes sense to start at the first step in the sales and marketing process: generating new leads and prospects.
There are three ways to create new business…
1. Cold prospecting
2. Your client database
3. Referral partners and affiliates.
There are a lot of high-leverage, high-impact ways you can use technology to generate a steady stream of qualified prospects from these three sources. So, let's begin this article by looking at one of my favorite technologies - voice broadcasting.
Voice Broadcasting (VB) is one of my favorite technologies for three reasons: 1) It produces results - fast! 2) It is extraordinarily versatile - you can easily increase or decrease volume based on your need for new leads. 3) It is very simple and easy to implement - it requires very little effort on the part of a loan officer. All you just need to purchase data, and record a script.
For those of you that are not familiar with Voice Broadcasting (VB) it is a new technology that allows you to leave voice messages on answering machines and voice mail - it actually detects the difference between a human voice and a voice machine. When your clients play back your message from the answering machine they will not be able to tell the difference between a real message and a voice broadcast.
VB offers tremendous leverage for generating leads from both cold prospects as well as leveraging your client database. Here is how you can put this technology to work for you…
Cold Prospecting for Debt Consolidation Refinances
Using VB for lead generation is not for everyone, but it has worked for me. I have been cold calling 4,000 homeowners per day to generate new debt consolidation leads. Results have varied, based on market conditions and our offer, we have experienced 1% - 5% return call responses. And, we close loans on 5% to 10% of lead calls.
One of the keys to making this prospecting strategy work for you is to purchase the best data possible. Do not use cheap data - it will kill your results. You don't need FICO scores, but you should make sure that your prospects are likely to both qualify and need your loan offer. I have been purchasing credit data with debt consolidation opportunities. Developing great script and coaching your staff every day is also a key to the success of voice broadcasting for new leads. (If you would like samples of my scripts feel free to email me.)
Cold Prospecting for Purchase Opportunities
The good news is that you do not need expensive data for this tactic, just get your hands on some local homeowners in specific neighborhoods. I recommend teaming up with a local Realtor to implement this strategy. Personally, I target several upper-end neighborhoods in my market place.
Your goal is to leave a message that will encourage a return phone call from any homeowner that is thinking about buying or selling a home in the next 6 months. I leave a message every other month to the same homeowner. This strategy also works when interest rates are low for refinance opportunities.
Prospecting your past client database
VB is a great tool for working with your client database. More than any other marketing medium, it allows a personal, high tech, high-touch communication that enhances and strengthens your client relationships. And these strong relationships are absolute gold mines for referrals.
Here are my suggestions for making the most of this tool…
I recommend leaving a message 4 times per year at their home phone number. Typically, I just update them on the current market and announce some special programs. I suggest asking for referrals every other call. Be careful when using this technology. You don't want to sound like a broken record, "Give me - give me - give me a referral." I feel that it is important to provide information for the sake of providing information and not always ask for a referral.
I average a 5% to 20% response depending on the interest rates and the message left. Equally important, this strategy keeps my name on the mind of my favorite referral sources. Or, as Greg Frost once said, "It Buys Brain Cells".
In conclusion let me say this: Always remember that new technology by itself is vital and important, but the key to increasing profits with technology is not the technology -- it is the commitment to implement it that creates new profits and the competitive advantage. One of the rules to live by in the mortgage business is, "Implementation is everything".