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Top of Mind Networks

Using Permission Marketing in your Mortgage CRM

Your CRM efforts should always bolster two top-line objectives:

  1. Facilitation of Repeat Business
  2. 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).

Sample Letter

ROI Analysis: 

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). 

Goodwill:

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.

January 23, 2009 by · Leave a Comment

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About Mark

Mark is President of Top of Mind Networks, specializing in turn-key CRM solutions for mortgage professionals.

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