In the mortgage business, the vast majority of marketers lack the creativity and ingenuity to generate a consistent flow of high-quality leads on demand. The primary reason is the diluted messages in advertising that deliver little value and fail to attract prospects.
It is not uncommon to land on a website, pull a postcard from your mailbox or stumble upon a print ad somewhere and find an advert along the lines of “XYZ Mortgage company, here to serve all your lending needs”. That statement is probably used verbatim in a large percentage of ads, or it can summarize the essence of most marketing pieces. It is a flat, untargeted, uncompelling statement lacking any meaningful form of a value proposition.
You may have heard the sayings “If you sell to everyone, you sell to no one”, and “The riches are in the niches”, to list a few in the subject of niching down in your marketing. There is power in that ideal. How do you go about pivoting what you currently may be doing and find a better, more profitable business model?
Finding Your Ideal Customer List
Thanks to the power of big data, and applications which provide the technology and the ability to sort and filter a massive amount of data points on consumers from multiple sources, we can now request our ideal customer on demand.
There is no shortage of data sellers where you can set up an account and start mining for gold. Let’s look at just three sources of data you can use:
With the ability to find a list of customers with such detailed information, you can find potential borrowers to whom you can make a laser targeted offer.
It would be hard to argue about the advantage that a credit data repository such as Experian offers. Especially in terms of the quality and amount of data they can make available to mortgage and Real Estate marketers. Credit data and mortgages are inseparable. Lending decisions are highly dependent on credit information so it stands to reason that they can be a strong ally in our marketing efforts.
Experian offers one of the richest consumer profiles in the industry with a variety of packages to choose from. For mortgage and Real Estate lead gen, their financial services targeted package provides an extremely detailed list of characteristics which you can use to hyper-target your campaigns.
Because Experian deals with such sensitive and private information, users of their data services will have to jump a few extra hoops to get access to it. The extra work may be well worth it if your targeting can increase your ROI to still make a sizable profit.
Their tagline “Data Solutions and Actionable Analytics” says a lot. It is worthy of notice that Black Night provides a lot of the data portals that mortgage lenders and Real Estate agents currently access compliments of their favorite title company. Most of the major title insurers provide lenders and agents access to TitlePro247.com which is powered by Black Night.
Subscribers of TitlePro247 usually get access to public record information which can be extensive, and sufficient to do some very targeted marketing if you are strategic about how you choose your list. One nice thing about the service is that you actually get the list of people you choose to market to. Some other data sources just allow you to license it and charge on a per-use basis. Not with Black Night.
Through the basic subscription service, you will not get phone numbers or email addresses though. That is premium data which you can still access through their portal, you will just have to add a payment method, and pay a nominal charge to access it. As a quick side note, you now have to pay for it as a result of the Consumer Financial Protection Bureau regulations tightening down on what title companies can offer free of charge to intermediaries in the Real Estate transaction.
Strategies To Hyper-Target Your Marketing
You have the coveted list, let’s review a few ways you can use it for maximum profit. We will focus on three “Real World Applications”: Move Up Buyers, Debt Consolidation Refinance Prospects, Absentee Owners
Move Up Buyers
Without a doubt, one of the highest profit potential segments you can market to, here is why; As a lender, you rely on your Real Estate agent partnerships for new business. One of their biggest struggles and most ardent desires is getting saleable listings. Focusing on this market segment in partnership with them is a win-win for both of you. You can be their hero, cement that partnership by helping them achieve their dream goal and becoming their go-to lender.
Here is the detailed strategy you can use; Select those buyers who bought a small home or condo from 2010-2016, ages 28-40 years old. These homeowners are living in what is likely their first home. Their household makeup has undoubtedly grown by now and they need to sell the current property AND purchase another one. They will likely move within the same area, according to NAR, within 15 miles of their current home.
The beauty of this group is they have equity, they have established credit and have experienced the home buying process. As a lender, this is your ideal home buyer/ borrower. Your Real Estate partner would be ecstatic to find out they can get two, potentially three sales out of one client. As a lender, you may easily end up with two loans, the purchase of the subject home, and the loan for the seller’s new home. Plus your agent partner’s eternal gratitude and continued support of your business.
Use the premium features of the data which include phone numbers and email to launch multimedia, multi-touch campaigns. Tag team with your Real Estate partner to stay top of mind with those prospects as a team.
Debt Consolidation Refinance Prospects
This strategy can be used as an “evergreen campaign” so you are never short of business. Consumer debt is at an all-time high. According to the Federal Reserve Board, as of March 2019, consumer overall debt exceeded 4 trillion, with over 1 trillion of that being “revolving debt”. Kaching! Use Experian’s deep consumer data to find those who have a 1st and 2nd mortgages and maybe have been late on their credit cards and pr mortgage in the past 24-36 months. Select those who have at least X amount of equity which will fit your loan programs. Have a professional write your ad copy so your message can be the “right message” for this group.
Imagine having a list of borrowers who “think” they may not qualify for a loan because they have minor credit challenges. Be their hero by delivering for them. It is known that we as human beings tend to have social circles with people of similar habits and profiles. This is great news if you can strategically market to these borrowers for referrals. Word of mouth is powerful marketing and you can position yourself to make it rain referrals and repeat future business!
Another highly underused strategy in the mortgage and Real Estate businesses. Use Black Night to select Non-Owner Occupied properties with OUT OF STATE owners.
This time, select those who purchased the homes between 2000 and 2006. This is important because your strategy will be to inform them about the current market in the area. They are usually hungry for information. Many of these purchases were made speculating on the continued rise of home prices. As we know, the crash of 2007 put the kibosh on those plans for many. Others simply had life events that caused them to have to move and the decline in home values just wasn’t favorable for them so they could sell at the time. They became reluctant landlords.
With the widely publicized speculation of an impending market correction in the near future, a large portion of those who became reluctant landlords may not want a repeat of past events and are now thinking of selling those properties. Where is the opportunity for you as a lender? For one, you can feed your Real Estate agent partners highly motivated sellers to list. Use this to position yourself as the lender who brings business to them and have them now chase YOU instead of you having to chase them for business.
Additionally, those who sell their property may decide to re-invest in something close to home so they don’t have to pay capital gains taxes. You can be their guide in this process with the right marketing campaign. And of course, you can be their lender when they buy that higher priced investment property. Not to mention again, referrals if you market for that as well.
Armed And Ready
Just one of these strategies can make a significant difference in your business. It is practically guaranteed that you will have negligible competition since the majority of mortgage marketers rarely think this deep into their targeting and marketing.
Take advantage of the extensive list of features BNTouch offers with our powerful CRM to make each step of your campaign launch sequence as simple and effective as possible. Our pre-made co-branded content will make it easy and simple to align yourself with strategic Real Estate partnerships to make the entire process seamless.