Earlier this year, Robert Toll, executive chairman of U.S. luxury homebuilder Toll Brothers, told CNBC that he thought the new home industry “appears to be building momentum with the national homeownership rate rising over the past year.”
That’s the good news. The not-so-good news, at least as far as those in the mortgage industry are concerned, is it appears many in the mortgage industry have been marketing themselves the same way since 2008 when the recession was in full swing. We’re talking paper fliers, mailing ads and other “archaic” methods.
And rest assured when I use the term “archaic” I mean in the sense that these are primarily the only methods being utilized vs. mixing these with newer-school marketing methods. The fact of the matter is those in the mortgage industry need to get better at marketing to home buyers.
Matthew Herrick of Deedcoin says regardless if it’s real estate, lending or insurance, the traditional means of advertising and marketing are being phased out by more organic means of customer acquisition. “The modern consumer-facing company does not push their brand on consumers, they empower consumers to push their brand,” says Herrick. “Organic community management and development is more effective than the most exorbitant advertising budget.”
Here are a few things that marketers working in the mortgage industry should keep in mind going forward:
- For a long time, mortgages have relied on the fact that they’re a key component to the American dream so people don’t need to understand how they work.
- Even though the mortgage industry might not immediately sound like it belongs on Facebook or Instagram, social media is a huge tool for this industry.
- Your target audience expects a functional online experience. That experience should also be quick and easy.
- The Internet is a constant churn of noise and content. To be heard, and more than that noticed, you have to really turn heads — so to speak.
Pick Your Niche
Everyone needs a home, so there’s clearly a consistent need for people in your industry. But, the truth is “everyone” includes a wide range of people, with different tastes, needs, and desires.
By the nature of your job, you rely mostly on recommendations from your customers. More than in any other field, the quality of your work reflects on your results. However, people usually recommend a service to peers who have similar interests. This means that if you get to know a demographic niche, you could become an expert on it.
The last thing you want is to be a Jack of all trades and master of none. If you chose so, you wouldn’t be able to fully address the needs of any demographic niche. So, pick your side, be it renovation loans, VA loans, FHA loans or any other, and market to that
Make The Process Accessible To Your Clients
People are more likely to engage with a product if they understand it. For a long time, mortgages have relied on the fact that they’re a key component to the American dream so people don’t need to understand how they work.
But that’s old school.
“Here at The Mortgage Guys, we make it a fun process, and we make it a simple process,” says Albert Preciado. Preciado runs a successful mortgage company that has originated more than $1 billion in loans since 2005. And a good portion of his success comes from his unique marketing tactics.
“It actually turns out to be a great experience,” says Preciado. “First, we send them detailed instructions on where to park and how to get to our office. We make everything easy for the customer. When they come in for a loan application, we have their name on the screen and they are greeted with a warm welcome.”
Preciado says that offering refreshments and making clients feel at home helps his business—in contrast to how clients may feel in a stressful, more traditional banking environment.
Accessibility is huge in attracting new business — if people feel like they can do something easily they’re much more likely to do it.
Use Social Media
Even though the mortgage industry might not immediately sound like it belongs on Facebook or Instagram, social media is a huge tool for this industry.
“I get at least one deal a day from social media,” says Preciado. “People will send a direct message to my page – once a day, at least. The more people that know about you, the more business you’re going to get.”
See what popular industry social media accounts are doing to gain engagement and traction with their followers. How often are they posting? What are they saying in response to customers? Is there a way you can mimic their successes with your own businesses? Make a plan to incorporate some of their tactics into your own strategy.
But remember: No two social media strategies are created equal. Social media works best when it is authentic to the individual or business.
An excerpt from a great piece on seomarketing.com says it all: “Your target audience expects a functional online experience. That experience should also be quick and easy. There are several mortgage automation software packages out there.” Marketers, agnostic of industry the world over, have realized the incredible benefits there are to using an automated platform.
The speed alone makes automation a no-brainer for marketers, and those in the mortgage industry would be wise to take full advantage of all that automation can provide to them and in turn to their customers and prospects.
Use Visual Content
In 2017, more than 70% of the online content was video. In the second place, there was visual content, mainly infographics. This type of content gets shared four times as much as plainly written materials because it is easy to read and engages the viewers.
You can use infographics to share interesting things or fun facts about houses, building, or the market. You can also use video recordings of different homes for people who don’t seem to find the time to visit the place or try a live video from a building that doesn’t have many potential buyers.
You can even use video in your emails with your clients, to help build relationships, and convey messages about the mortgage process that are sometimes hard to relay through text!
Go Against The Norm
The Internet is a constant churn of noise and content. To be heard, and more than that noticed, you have to really turn heads — so to speak.
“No mortgage lender drives a Ferrari,” says Preciado. But in reality, that’s exactly what he drives, and he says the car has helped him seem like an interesting guy that people want to know. By upping his cool factor, he’s increased his networking opportunities which have led to more business.
“They see me as a pretty cool, down-to-earth guy, so people would come to see me in my office,” says Preciado. “I started to build a bunch of new real estate agent connections because of the car. Everybody thinks I’m cool, and they want to meet me.”
But what makes Preciado so innovative is that his marketing style goes completely outside of expectations with what an average “mortgage guy” should look like. For example, Preciado also uses his social presence to talk about everything from self-improvement to the importance of staying fit and how entrepreneurs can get their workouts in — regardless of their busy schedules.
Read Full Article at Forbes