Using Permission Marketing in your Mortgage CRM
Your CRM efforts should always bolster two top-line objectives:
- Facilitation of Repeat Business
- Facilitation of Referral Business
Here’s an execution strategy you can implement tomorrow, followed by a brief ROI analysis.
Give a Free Credit Report 1x/year, Complete with FICO Score Analysis
Execution: Send a letter to your sphere of influence DB promoting a Free Credit Report.
Call to action: “Call Me To Ensure Your Credit Score is Maximized At All Times.” I’ve written a draft (below).
Expect a 10% response rate on this mailing. Easily lift rate to 25% or better if you can discipline yourself to call behind the letters.
100 letters to your DB signed, sealed and delivered by Top of Mind costs $1/letter = $100
10% response rate = 10 inquiries so you’ll spend another $100 to $150 on credit reports.
Thus, your approximate cost should be $250 for every 100 letters sent.
Broken down further, your approximate cost per FICO Analysis conducted will be $25.
Greg Frost teaches us that approximately 15% of our database will be in the market for a mortgage sometime in the next 12 months. David Orsini covers this concept nicely in our Surefire Video. Therefore, our expectation should be that 10 FICO Analyses (ie: meetings with potential clients!) should yield 1.5 transactions.
Assuming you earn $1,000 for each loan transaction, that’s $1,500 in revenue for the 1.5 people you financed directly from the campaign. In other words, your direct ROI was $1,250 on a $250 investment (5x).
What about the 8.5 people you consulted with and didn’t do an immediate loan for?
You’ve just deepened that relationship, fostered future reciprocity and created a potential referral machine.
The Bottom Line:
The immediate 5x ROI is nice. And the ancillary benefits (increased goodwill and Top of Mind Awareness) are even better. Using a valuable giveaway in your CRM will lift response rates and drive ROI. This technique is commonly referred to as Permission Marketing and as we all know in this business - the more you give the more you get!
Execute Without Fail.
- Never. Ever. Let them walk away. Without a smile on their face. Here's why.
- Here's Where Surefire Succeeds Where Most Mortgage CRM Solutions Eventually Fail
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