Mortgage marketing will be a little different this time around
Looking for the bottomline? Here’s how the mortgage market, and more importantly mortgage consumers, have changed since the last Mortgage Boom.
If you’re looking to get in on the next round make these adjustments to your mortgage marketing:
- All consumers are on the Web
- Consumers expect to do it themselves, on the Web
- Consumers (especially Millennials) don’t want to talk in the phone
- All leads need to be nurtured to maximize ROI
Do you want the details? Read on…
In 2000, I stepped out of the Intelligence community and into what was about to become the hottest mortgage market on record. Luckily for my ventures and myself, I was a technologist specializing in human behavior, not a classically trained banker.
My unique background gave me the unlikely blessing of ignorance and wisdom. This proved to be a tremendous asset in the relatively early days of online loan originations, lead generation, and frankly, the consumer web.
As a result, from 2000–2008 I managed to participate in the building and selling of Deep Green Bank, the only 100% automated home equity web lending platform and Internet Bank, lead Quicken Loans’ brief pursuit in becoming a bank and later leading their National Home Equity division, building a second home equity lending platform, and finally building the first lead management SaaS solution and company. Then I watched all of these creations meltdown in a matter of days in 2008.
For those of us close to this monstrous multi-trillion dollar market, this was a spectacular implosion.
Can you believe that market is starting to show signs of roaring back?
If you care to dip your toe back into this highly volatile market, let’s look at how it might be different this time.
Will the Mortgage Market Be Different?
I honestly don’t believe the mortgage market will be that different. Here’s why:
- There haven’t been that many substantive regulatory changes
- There will be a ‘need’ for innovative interest-only and low-doc mortgages as home prices are rapidly shooting through the level of ‘affordability’ for new home buyers, lowering homeownership rates to politically unacceptable levels (i.e., below 65%)
- Wall Street still needs low-risk, high-yield bonds for enormous institutional investors (i.e., pensions and municipalities) artificially restricted to ‘low risk’ securities
- An extended period of banks’ constrained lending, consumers rebuilding credit, and rising costs of rental housing is rapidly building demand for an expanded mortgage market and its products
- This same extended period of homeownership (as people wait for their home values to rebound) and steadily-appreciating home values is regenerating demand for a home equity market
That’s my case for a very robust mortgage market, if not a full-blown resurgent mortgage boom. Assuming that evidence is compelling, let’s look at how mortgage marketing is already shaping up to be different this time around.
I believe mortgage marketing will be very different from 2000–2008 largely because of the Internet as our digital marketing medium has become ubiquitous for the consumer.
Therefore, your primary marketing plan has to be digital. At the same time, this has geometrically enlarged the online market ( rapidly eclipsing TV as the largest advertising market) and unlocked the stranglehold lead aggregators (e.g., LowerMyBills, LendingTree, Quinstreet) had on the online mortgage consumer, allowing mortgage companies to use a smartly integrated, multi-channel digital marketing strategy to generate high-quality, affordable mortgage leads.
What does that mortgage lead generation strategy look like?
- Search Engine Marketing (SEM) — Search is still the most powerful way to capture new home buyers and refinancing homeowners, and these clicks have never been more available and affordable via AdWords.
- Social Media Marketing — We’re primarily talking about Facebook here. The social media streams consume people on their smartphones, and we can very cheaply buy our way into their attention. This is the best way to become a household name and referral in your target markets instantly, not to mention an excellent way to stay top of mind for all of your past clients.
- Website — Building a beautiful, professional website has never been more affordable. Also, there’s a lot of technology that can make your site highly capable at converting and yielding a steady flow of mortgage leads.
- Phone-less Sales — Consumers are quickly abandoning the voice call to do business. They want to use live chat, text messaging, and email. You must adjust your sales process to accept this fact.
- Lead Nurturing — Driving the very highest ROI possible requires an email and text messaging-based automated lead nurturing process. Marketing automation allows your sales process to work efficiently on a much larger sales funnel and keep more leads in an active state.
Are you thinking about your mortgage marketing strategy? What do you think is going to be the secret to your marketing success?
If your mortgage marketing could use a fresh pair of eyes, we can help. Call 313–566–4849 or email firstname.lastname@example.org, tell us about your business objective, and learn how we can help your business improve its lead generation strategy and grow revenue.
Originally published at billrice.com on April 19, 2016.