No business should be reliant on just one source of potential income so the challenge is to identify which marketing channels are most effective for you. This could range from direct mail to networking or from online lead generation to display stands at consumer mortgage events.
The internet has become a key medium for reaching potential clients. If you are trying to create successful internet marketing campaigns you need effective marketing strategies. When talking about marketing on the internet the starting point is always to develop an effective website. A good website should contain benefit-driven copy.
That’s copy which explains how your business can help its target audience in some way. Too many sites simply explain what the company does and provide background rather than explaining how it can actually help. How many times have you seen a company’s primary website message being: ‘We are based in…and have been established x years’. While it might be comforting to know a business is established, it is unlikely to be the primary reason for the consumer doing business with you.
Set yourself apart
An essential exercise is to identify clearly what really sets you apart from the rest, either your unique marketing proposition that you and you alone possess which makes you different, or something that isn’t actually unique but is a key strength of the business that will be attractive to your target audience. No matter how small your business you will derive great strength from knowing that you have something unique or something that sets you apart from many of your competitors.
Effective websites also need to provide a reason for the consumer to visit the site regularly by providing a service or free information such as useful newsletters, research or reports. Smart online marketeers understand the importance of getting their target audience to subscribe to such a service and by doing so they capture vital data such as name, address, telephone number, e-mail address, etc which can ultimately be used to sell something once a relationship has been established. So great websites are the ones that create and maintain ongoing relationships with the target audience.
Lead generation
Lead generation is a key tool for brokers and one which any firm can benefit from. It is not a new method of generating business but the approach has changed over the last few years. Rather than sitting at a trade show table for hours on end, or setting up a display in the hope that consumers will complete a form, you can have leads generated and sent to you using the power of the internet. In theory, most of the work can now be done for you. A very effective method is to have a website or a group of websites that are devoted to getting people to sign up for mortgage or related services so people specifically go to these sites seeking this information. This technique tends to incorporate pay per click advertising which is proving to be a highly efficient way to attract leads. The challenge for the broker is to find a reputable lead generation firm and to have the infrastructure in place to turn the lead into a sale.
The process of lead generation sounds very easy. A third party develops a website or partnerships with several websites in which they promote and advertise your product or service. A consumer finds these directories or informational sites and they are able to complete an online form. However, excellent marketing skills are needed to attract good quality leads, so its not as easy and straightforward as it sounds. Nowadays, some 85 per cent of consumers search using the web so ensure the lead generation firm you use is really good at search engine optimisation.
However, the internet has already become a crowded sector and appropriate care should be taken when looking for reliable leads. Those brokers who do use reputable firms and manage the process properly usually find their business goes from strength to strength.
Some brokers prefer to set up their own in-house lead generation process. The key here is to develop a professional and effective website. If you do opt for your own site, again, ensure that the designers are experts in search engine optimisation too; otherwise you could end up with a great looking site but no leads.
Approach lead generation just like you would any other marketing endeavour – set aside a reasonable budget to test it and see if it works for your business. However, do not try to approach this method of marketing without the ability to follow through and close the sale. Our top tip – ‘The Golden Hour’ – make sure you get to all internet generated leads within one hour max, preferably within minutes. Furthermore, as always, be sure to pick a business partner with a good reputation who lives up to your standards of service.
Advertising
When talking about marketing activity and specifically lead generation, many people automatically think that must include traditional advertising. However, this is not the case. While advertising works for some organisations, it is often an expensive route to market.
For the typical smaller broker, brand advertising is simply a waste of money. The amount of money that is required to build a brand in this day and age prohibits all but those with seven-figure marketing budgets. Direct response advertising, i.e. advertisements that are designed primarily to generate leads via telephone or online response, rather than brand-building advertising on the other hand can work well for those with smaller budgets. However, direct response consumer advertising is expensive too, so the best solution could well be ‘direct response public relations’ which is far more cost-effective.
This is PR coverage that includes your telephone number or website along with your comment. For example, there are several national newspapers that run regular columns that are centred around intermediaries offering financial advice to consumers or which provide product reviews. An additional benefit with PR is that you will be positioned as an expert providing advice and insight to the reader. This provides a great reputation and brand-building opportunity at a fraction of the cost of advertising, as you will only pay the PR consultant a fee for setting up the opportunity rather than buying the space from the media owner. Also remember what Oscar Wilde said back in 1890: “There is only one thing in the world worse than being talked about and that is not being talked about.” So if you don’t effectively market yourself no-one will ever know you exist.
Close monitoring
The key to an effective marketing strategy is to closely monitor which tools work best for you. It is also important to consider the actual copy you use. As with website content, the right copy is vital and without it your marketing activity is doomed to failure whether you choose direct mail, advertising or any other form of business development
Research has repeatedly shown that it costs companies in the region of five times more to sell to a new prospect than to sell the same product or service to an existing customer. Therefore your marketing activity should not be solely focused on generating new clients. The key to client retention lies in the building of long lasting relationships so that they not only repeat their purchases from you, but also become the source for generating referrals to new clients. A client who will perform this long-term function for you needs, on the whole, to be one for whom your initial product or service has exceeded expectations.
Whether you’re a small broker or a large lender, smart, focused marketing is key to building reputation and brand, and in generating new business from new or existing clients. Be clear about what you want to achieve from the outset.
Nat Daniels is managing director of Mortgage Angels
