Podcast: Why Mortgage Marketing CRM is a must have for your 2020 Lending Marketing Plan
It’s a new year...actually a new decade! And with that comes the need for a new marketing plan of course. So much has changed in the lending industry over the years and it’s definitely time to reassess our marketing ops and tool sets as we dive into the "Roaring 20’s Part Deux."
To form our new and improved mortgage marketing plan, it’s important to look at some key points of change in the industry and then look at how we can address those changes with the right sales and marketing tool set. Here’s a list of things to consider and incorporate into your 2020 plan...
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1. Increased competition
Borrowers have so many more options now for finding a loan transaction than they did in the past. Instead of being a “who you know” business, everything has really shifted to an “online” research-based space like almost every other product out there. With the coming of age of “millennial marketing,” the bottom line is that companies are catering to their audiences and have adopted a truly “proactive” approach to marketing. If you don’t pick this up, the risk is that you’ll simply get lost in the noise of your competition. In fact, we’re looking at an all-time high of merger and acquisition activity and guess who’s taking over...the companies that are competitive – with their marketing!
2. Pick up in regulation and compliance leading to increased pressure for profitability
As we just discussed in our last article regarding the California Consumer Protection Act (CCPA), new regulations and compliance standards are coming out all the time and firms that can’t keep up are going to lose out. With the complexities of new fintech and the nuances of multiple data integration touch points in mortgage lending, lenders that can’t support this kind of fast-paced infrastructure not only lose out on business to those that are adapting but also lose out on profits due to inefficiencies.
3. Talent shortages
After the Great Recession of the late 2000s, we’re still feeling the ripple effects of the exodus of a lot of people who were in mortgage lending who have gone into other fields. This paired with a tight labor market has made the process of attracting and keeping the best talent one of the most challenging tasks. That being said, the top mortgage lending performers are used to being enabled to reach their full potential via the right systems and tools at an organizational level. If we can’t provide these marketing and sales tool sets in-house, we’re going to lose out to the competition who does.
Now that we’ve gone over the challenges to look out for, let’s look at how we can address them and carry our mortgage lending organizations into the next decade ready to succeed.
Get more efficient
In defining the way that we’re going to compete and be profitable, raising your marketing and sales ops efficiencies is the name of the game. This begins with how you process and track incoming opportunities and handle lead management. Whether you’re a branch office with five to ten loan officers, a national call center, consumer direct, or a wholesale lender managing many account executives, it’s all about having that systemized workflow for sales follow up. What areas can you automate? How can you reduce the risk of errors or sloppiness? We especially need to be looking at how our personnel can work more efficiently and how this will contribute to our bottom line – getting the most out of your resources. And don't forget the recruiting process as well...
Create a system
Even if you go through your processes and increase efficiencies across the board, how can you ensure that these new methods are being carried out? How can you monitor and track your progress? Visibility and control over the operational processes of your organization is essential. You need to have something tangible that you can utilize as your tool or, more importantly as your core platform to run your marketing and sales operations. You can't just talk about it. You can't just wing it. It's got to be a system. When we talk about gaining efficiencies through organizational standards, greater execution for compliance and Agent/Originator/AE daily groove, we need to have more situational awareness. Whether that be opportunities that are going untapped or just visibility of issues or problems with performance, everything needs to be logged, analyzed and optimized.
In today's world, marketing communications has got to be more relevant to be seen. The name of the game for personalizing marketing and sales operations is taking advantage of next-generation technology along with all of your sources of data. Using informational bits about the customer, whether it’s a milestone in their life experience or a communications preference, will make your marketing efforts stand out above the rest. Take a look at the databases and data points that you already have access to but just aren’t leveraging fully with an integrated setup. Moreover, how can you mine or farm that data with filters, queries and merges to be more surgical with your marketing and sales initiatives? Going back to the challenges with acquiring and maintaining good talent, overhauling your sales and marketing tech is going to ensure that you can attract and the right people and keep them thriving.
According to this National Association of Realtors report, Millennials are 37% of the home buying market and this generation is bringing in the new style of interfacing with customers and leads. It’s easy to mock the younger generations on being obsessed with their smart devices and not being reachable by more “traditional” sales and marketing tactics, but all of those larger organizations that are acquiring and merging successfully are not laughing and instead completely re-positioning themselves to cater to this audience. Not only are customers now used to being reached with a variety of “smarter” communication channels (text, voice mail drops, strategic email), but they are used to being catered to in an information-rich digital age. This generation arguably knows the least about the home buying process which provides an opportunity to provide guidance and content as part of the sales and nurturing process. Gone are the days of generic blast marketing campaigns and here to stay is the need to be extremely personable and relevant with all our communications (again, think data integration and enterprise-level CRM).
When you’re ready to put these tenants into practice, the process of getting started and implementing the right tools and resources can be extensive, time consuming and overwhelming. But it doesn’t have to be! Whether it’s setting up your first true enterprise-level mortgage lending CRM system or looking at how you can better utilize your current applications, Mortgage iQ CRM has been designing lead management and marketing systems in the business for over 30 years. Reach out to us today to talk more about how you can “roar” into the 2020’s with a new tool set to lead you to prosperity. Happy New Year!