Strategies for Boosting Your Marketing ROI
As mortgage interest rates rose, a sizzling hot housing market cooled. Contracts to purchase previously owned homes did increase in June, but it was the first time since February. Affordability took a hit as the average mortgage payment was $2,317 a month. And housing inventory fell 13.6% annually to 1.08 million units.
With summer here, the hope among loan officers everywhere is that the market will recover. Before your workload becomes too heavy, why don’t you take a moment to calculate your marketing return on investment (or MROI). MROI is exactly what it sounds like: a formula for measuring the return on investment from the amount you spend on marketing, whether it’s for a specific marketing program or your entire marketing plan.
How you calculate MROI is simple: subtract the cost of your marketing initiatives from the financial value gained as a result of your marketing initiatives. Divide this number by the cost of your marketing initiatives and then multiply by 100. Calculating your MROI can help you:
- Gain insight into your marketing budget. MROI gives you a clear picture of which strategies in your overall marketing plan are performing well (and not performing well).
- Short-term and long-term plan. MROI can assist you in determining where your business shines and where you can improve.
- Compare marketing efficiencies with competitors. MROI is helpful for gauging how your business is performing against others in the mortgage industry.
- Meet customer expectations. If your customers’ needs change, your MROI may decrease—which means it may be time to change your marketing strategies.
You have crunched the numbers and calculated your MROI. Now it’s time to implement a few strategies to give that figure a boost. Read on to discover how!
Take advantage of video
Video has become one of the most impactful solutions for connecting with today’s borrowers. Video content allows loan officers to appeal to the needs of their customers in a creative and authentic way.
According to a recent survey, 92% of marketers said that video gave them a positive return on investment. Meanwhile, 96% said video was an important part of their marketing strategies.
Video can be especially beneficial to borrowers ready to navigate the mortgage process. Imagine the possibilities: an informative and engaging video that details each financing step—from preapproval to closing day. Or how about a friendly introductory video that includes background on available loan programs and testimonials from satisfied customers? With video content, the possibilities are simply endless.
Implement direct mail campaigns
While direct mail costs are typically more than those of digital campaigns, the return on investment is higher. According to the Online Marketing Institute, direct mail has a lower cost per lead than any other marketing channel.
With direct mail, loan officers connect with customers at the right moment to provide the right solution. This can take the form of a direct mail campaign that offers credit-rebuilding tips to a homebuyer whose mortgage application was just denied. Or a home loan “check-up” mailer to a borrower whose adjustable-rate mortgage is on the verge of adjusting. Whatever the case, direct mail is perfect for delivering timely, targeted communications to customers in need.
And because of its ability to be accurately tracked, direct mail can be continuously tweaked and improved. When data, content, and design are modified, loan officers improve their ability to provide a better return on investment for their businesses.
Utilize a CRM or marketing automation solution
While the day-to-day tasks of a loan officer are often complex and challenging, the primary responsibilities are surprisingly simple: maximize marketing efforts, connect with clients and prospects, close real estate transactions fast and efficiently, and grow a business pipeline. Utilizing a cutting-edge CRM or marketing automation solution—or both!—can help loan officers complete these tasks and boost their MROI.
With a robust CRM platform, a loan officer can efficiently manage a client base, prospect pipelines and partner relationships as well as past loan transactions and day-to-day activities. A mortgage CRM can also schedule and dispatch email campaigns, make social network posts, or deliver other online marketing content.
As for marketing automation, the right set-it-and-forget-it solution can create stronger leads, increase conversion rates, and give a loan officer access to more accurate data for determining the effectiveness of their marketing efforts.
Make the most of social media
Social media is one of the most powerful ways loan officers connect with customers. By creating engaging content and strategically sharing it, they increase their social media reach and drive more traffic to their websites. Social media is also used to better understand customers’ needs and wants. This more comprehensive understanding of a customer base leads to better marketing decisions and more effective campaigns.
Invest in yourself
In our ever-changing industry—with its new real estate laws, emerging technologies, and fluctuating market conditions—the most successful loan officers set aside time for professional learning and development. This means joining industry associations and attending events, regularly reading e-newsletters, blogs, trade journals, and magazines, meeting up with colleagues, partners, and clients to discuss current trends, and keeping an eye on competitors.
Ready to connect
We hope these five strategies give your MROI a boost. However, if you want to position your business for greater success, you may need to work with an industry-leading marketing partner.
This is where Volly can help! Contact us today for a demo and to learn more about how we can be your valued partner.