Email is a powerful sales and marketing tool. In fact, it might surprise you that email marketing, when done right, has the highest ROI for your marketing dollar. For every $1 spent, the average ROI is $38 and is far superior to paid search, social, radio, and TV, according to Venturebeat.com’s “State of Marketing Technology.”
Unfortunately, email marketing it is vastly underutilized by lenders. And even when it is used, it’s often used incorrectly — creating an enormous amount of wasted time, effort, and sometimes even fines. That’s why we’ve recently released a new ebook – An Email Marketing Guide for Mortgage Lenders – to make sure you’re taking full advantage of your #1 marketing tool! Here is a sneak peak of the six steps for effective email marketing for lenders:
#1 – Know the Rules
Did you know that lenders can be fined up to $16,000 for a single email in violation of the CAN-SPAM Act? It takes just one non-compliant email being forwarded to the CFPB or the Federal Trade Commission (FTC) for you to have serious questions to answer — and quite possibly, major fines to pay.
To succeed at email marketing, lenders need to monitor the activities of their sales teams and have policies and procedures in place to act as an insurance policy against loan officers “going rogue” on email. In the case of an audit, having such policies in place and a system to ensure they were followed can ward off potential trouble. Download the full ebook to learn all the rules lenders should be keenly aware of.
#2 – Ensure Email Deliverability
Simply writing an email and pressing “send” doesn’t mean your email will reach its destination. You can have succinct and enticing email copy, wonderfully branded templates, and catchy subject lines, but none of it will matter if you cannot ensure email deliverability.
Make sure you know the nuances of each email client when using HTML, avoid all CAPS and exclamation points!!! Also avoid some of the most common trigger words for the mortgage industry like: mortgage rates, free quote, $$$, money back. Get a full list of trigger words and more tips for how to ensure your emails reach the intended recipient in our ebook.
#3 – Let Salespeople Sell and Make it Personal
Did you know companies that personalize marketing emails experienced a 27% higher unique click rate and an 11% higher open rate than those that do not?
While a lender’s marketing brand, messaging, and disclosures should all be consistent, the person closest to the borrower should always be the one driving the conversation. After all, it is their knowledge and expertise of the mortgage process that borrowers rely on to make smart decisions about getting a mortgage.
#4 – Stay Connected
One of the biggest struggles today’s lenders have is shifting from a refi market to a purchase market. The purchase cycle timeline is quite a bit longer in comparison to refi – sometimes six months or more, depending on how prepared your borrower is to buy a home.
Fortunately, email is a near-perfect tool for sustaining continuous engagement with both borrowers and referral partners. Consider implementing a purchase drip campaign – include Monday / Friday communication before and after the weekend house hunting search. Also include monthly email updates that incorporate timely insights on market conditions, rate forecasts and more that can be followed up with by a call.
#5 – Nurture Realtor Relationships
Did you know 77% of Realtors refer clients to only one lender or mortgage broker?
With more lenders targeting the purchase market, it has become increasingly important for loan officers to nurture relationships with realtors. The most effective and cost-efficient means of doing so is through co-branded emails that are sent out to your mutual clients.
This tactic not only builds trust with your realtor partners, but it also provides transparency and increases your chances for future referral business.
#6 – Be Consistent
Studies show that consistent follow ups with borrowers are key to turning leads into sales. And while sales teams should have control over this process, most simply aren’t following up with prospects quickly or consistently enough. Competition in the mortgage space is fierce enough. If you cannot maintain a borrower’s interest or keep them engaged, they will find a lender who will.
Countless studies have shown that the more “touches” a borrower receives, the higher a lender’s conversion rate will be. Email is a highly effective tool for turning things around.
In today’s highly competitive mortgage purchase market, email marketing can be a powerful sales and marketing tool to help you differentiate. Make sure you are fully leveraging email to close more loans. Download the full ebook – An Email Marketing Guide for Mortgage Lenders – for more insights.
About the author: Chris Backe is the director of financial services at Velocify, and a sales automation expert with more than 20 years of experience offering technology solutions to multiple industries. Chris has spent the last 10 years in the financial services industry, holding various positions at industry leading technology companies including Ellie Mae and Salesforce. He can be reached at firstname.lastname@example.org.