In 2016, we surveyed more than 500 mortgage professionals to get a pulse on the current state of technology. With the purchase market projected to grow significantly this year, retail lenders are preparing to leverage technology so they can meet the growing demand.
Participants in the survey consisted mostly of mortgage lenders, brokers, and correspondents, with a few wholesale lenders and credit unions. The survey included 16 questions designed to reveal how mortgage professionals are planning to invest in technology, and the perceived impact these investments will have on their sales process and strategy. The results yielded four key insights.
1) Invest more in marketing.
Because more borrowers are initiating purchases online, the value of this marketing channel has increased. Lenders are adjusting their strategy accordingly to meet this shift in buyer behavior. The survey results revealed that growing lenders are 50% more likely to spend more than 10% of their revenue on marketing.
Investing in mortgage marketing automation solutions, like Velma, can help you build your brand and increase marketing efficiency.
2) Make lead management a priority.
Mortgage professionals who are increasing marketing spend are generating more demand. To effectively manage the influx of leads, they are investing in lead management software. Survey results revealed that growth is the top driver for technology investment. Participants investing in lead management software were the most focused on growth. They were 29% more likely to select growth as a driver for technology investment than those not investing in lead management software.
As shown on the graph, process improvement is also a top driver for technology investment and that’s where the next insight comes into play.
3) Create a seamless process.
Survey results revealed that high growth lenders with high marketing spend are more than 2.5x more likely to be above average technology adopters than lenders with low marketing spend and slow growth. These growing lenders are not only investing in lead management software to effectively manage growing demand, they are also relying on additional technologies to get the most out of each lead.
To maximize lead investment, you’ll want to build a technology stack with tools that can integrate with each other for a seamless process. Consider how marketing automation, referral management, lead management, and CRM (customer relationship management) software, work together so that engagement is consistent and efficient throughout the buyer’s journey. Continue to improve your process with analytics software that provides insight into marketing campaign and sales effectiveness.
4) Grow your sales team.
Survey results revealed that lenders with more than 200 salespeople are almost 30% more likely to report growth than lenders with fewer than 11 salespeople. Clearly, having more salespeople on your team can help generate more revenue and faster growth, but that doesn’t mean you should just go on a hiring spree. It’s important to first ensure you have scaleable processes in place before growing your team.
Set your loan officers up for success with thoughtful planning and execution across the three insights described above. Drive adoption rates of your new technology by having a software implementation plan in place before you roll out each new tool.
Mortgage professionals’ interest in technology shows no sign of slowing. With lenders looking to software to improve the lending process, how prepared are you to compete for today’s digital buyer?
Meet the Author: Jorge Jeffery joined Velocify in 2011 and is director of research and analytics. Jorge has been instrumental in mining data from more than 1,500 sales teams that leverage Velocify’s solutions today. Insights gleaned help establish best practices for Velocify clients in order to maximize revenue potential.