5 Metrics for Gauging the Effectiveness of a Mortgage Referral Partner Program

by Chris Brown

Many lending practices have some type of mortgage referral partner program. These allow other individuals or businesses to refer potential borrowers.

However, you may not know if your mortgage referral partner program is working. With that being said, here are five key metrics for evaluating your referral partner program:

Lead generation.

1. Referral Rate

One of the most basic metrics is your referral rate. It simply refers to the number of referrals you receive in a given time period. Its true value may actually be in comparing the leads you receive from outside your business to the leads generated by your internal marketing strategies. In doing so, you can determine how much your referral partner program is contributing to your leads as a whole.

2. Conversion Rate

While your referral rate indicates how many referrals you receive, your conversion rate indicates how many of these referrals become borrowers. For instance, a low conversion rate means that you’re not convincing new leads to commit to the borrowing process. That might prompt you to redesign your introductory emails to better communicate your unique value.

Mortgage CRM creating a sales funnel with many people from different ways of mortgage marketing

3. Referrals Per Partner

A customer relationship management (CRM) system can measure the number of referrals you receive per partner. That can be helpful in showing what type of partner is the most effective. For instance, if most of your leads come from a real estate partner, then you might focus on developing more real estate relationships in the future.

Similarly, you can use that data to re-evaluate partner relationships. If you’re seeing a low referral rate from one partner, you might address points of friction or even consider severing that relationship altogether.

4. Customer LTV

A mortgage CRM system can also help you evaluate your customers’ long-term value (LTV). For mortgage lenders, that translates into how much revenue they generate per referral.

You can compare these numbers to those generated by your internal marketing efforts. Determine how much actual cash you are generating through a referral partner program. These figures can help you decide whether it’s more profitable to invest in your marketing efforts or lean more heavily on your referral partner program.

5. Customer Experience

The final metric is qualitative rather than quantitative. You can use a mortgage CRM system to request customer reviews and testimonials. Discover the kinds of experiences your referrals are having. See if there are ways you can improve the customer journey.

That can be challenging since there are no numbers attached, but customer reviews may highlight specific areas that you can improve. They can also allow you to maximize any features that customers find particularly helpful.

Customer relationship management

Make the Most of Your Referral Partner Program

Make the most of your mortgage referral partner program with a mortgage CRM platform. BNTouch offers partner management tools that can put your most valuable data at your fingertips. You’ll also better connect with partners through your online portal. To see these features for yourself, contact BNTouch to set up a demo.

To learn more or schedule a demo, contact BNTouch today.

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Chris Brown
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