Which consumer would expect better service, a satisfaction survey and a consistent marketing follow up campaign?
The answer to this question is so obvious that it is painful.
Car dealers, who often make less than $300-$500 from the sale of a new car, are experts at selling and keeping their customers.
My typical visit to the dealership starts with an email reminding me that it's time for some form of service. I can either send them an email or call to schedule an appointment.
Next I receive a confirmation email and phone call reminding me of the appointment.
At the dealership I am greeted with free water and a complimentary rental car. I am told exactly what to expect and when I can return to pick up my vehicle. I am always reminded that I will receive a follow up phone call (customer satisfaction survey) and how important they value my business.
After the service I receive a thank you post card and the follow up phone call.
Throughout the course of the year I receive a complimentary calendar and email solicitations promoting dealership special promotions and manufacturers rebate opportunities. 2 times a year I receive a phone call from the guy who sold me the car asking me how I'm doing and reminding me that he would love to help me with my next purchase.
This is the perfect marketing business model at work. It is a comprehensive system designed to find, sell and keep customers. Dealerships know the biggest expense is the acquisition cost associated with a new customer.
To see how auto dealers are using the internet to capture customers check out http://www.tasca.com/ or http://www.herbchambers.com/.
These dealerships effectively use their website as a true marketing center designed for one purpose: convert more visitors into sales opportunities.
Once a customer completes a contact form, they are automatically opted into a drip campaign designed to build value in the dealership brand and move the customer along in the sales cycle.
Dealerships have created specific CRC's, (Customer Relationship Centers) to deal with internet and walk in customers. They confirm appointments, send email blasts and follow up with customers who abandoned the sales process. These CRC's are the model of efficiency.
What does all this have to do with the mortgage industry? The top mortgage companies in the country do THE EXACT SAME THING.
As I travel the country speaking with mortgage professionals, my first question is: "How many people in this room systematically send out thank you cards?"
Answer: Consistently less than 30% state the use of a personalized thank you card. LESS THAN 30%. The average revenue on a mortgage transaction can exceed $5,000. But less than 30% of those customers receive a personalized thank you.
75% of mortgage companies describe their business as repeat and referrals. However, when I ask them to describe their marketing strategy less than 10% have a comprehensive marketing strategy to increase referrals and stay in touch with existing customers. This is where the breakdown happens.
Most mortgage brokers spend less than $300 per month on advertising and/ or the purchase of 3rd party leads. The brutal reality of this market is that customer acquisition requires marketing and marketing requires resources. Period.
If a broker is looking to close 2 deals per month, at average revenue of $4,000, than he or she should expect to spend between $500 and $1,000 in marketing expense. At the high side, that is $500 per customer acquisition, which is actually low.
Think of what a car dealer spends to get you to commit to a $90 oil change.
Finding new customers costs money. Anyone who thinks you can close 3-4 loans consistently without spending money on marketing is probably going to be disappointed.
Astonish Results can help brokers invest their scarce marketing dollars in a way that offers the highest ROI and increased closing percentage. Astonish works with top brokers and lenders across the country. Astonish provides business consulting, digital marketing and training to the mortgage industry.
Over the past two years Astonish has conducted extensive research into cost effective ways for brokers to promote and grow their mortgage business. It's not easy, and it's not free.
Brokers interested in growing their business should contact Astonish today.
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