With mortgage rates plummeting so quickly, millions of homeowners could benefit from refinancing their home. The average rate on the 30-year fixed mortgage fell to a record low of 3.29%, Freddie Mac reported this week. That’s down from the previous low of 3.31% in November 2012, in the wake of the financial crisis. This means that approximately 13 million borrowers can now save money by refinancing their home loans and lowering their current rates by at least 75 basis points. That is a record number of potential refinance candidates and an increase of 1.7 million eligible borrowers in just the last week and a 60% jump year to date. That is the highest number of potential refinance candidates on record.1 This is a tremendous opportunity for Loan Officers to close more loans!
When rates tick upwards, purchase business remains consistent. One of the easiest, most profitable ways to build your mortgage business is through direct mail marketing. Direct mail offers the opportunity to build your loan pipeline and your realtor referral base at the same time.
Direct marketing has long been a successful tool in a marketer’s belt. In today’s technical world, many people may still wonder, “Why send direct mail when you have the advantage of online advertising, social media, and other avenues?” While these marketing strategies work for many industries, things tend to work differently in the mortgage industry. The benefits of adding a direct mail component to a company’s advertising budget can help take business to the next level.
The success or failure of a direct mail marketing campaign depends on several components. To start, if you are not sending the right message to the right people, you could be wasting your marketing dollars. You must have a fresh, well-targeted database of potential customers to match your ideal message in order for a mortgage marketing campaign to work.
The most efficient way to spend your marketing dollars is by using a targeted lead generation strategy. What strategies are you currently using to reach your ideal customer? – Internet leads? Live Transfers? Spray and pray? Cold calling? All of these strategies work, but which works best? The answer – NONE of them!
In the digital age many wonder why send traditional mail when we have a plethora of digital resources at our fingertips? Direct mail marketing may feel outdated, but it outperforms all digital channels combined by nearly 600% and nearly 77% of consumers state they sort through their physical mail as soon as it is received.
Those stats alone should be convincing, but if not, read on:
When most of us think of the Millennial Generation, we picture digitally obsessed young adults who are glued to their screens. Most marketers would think the best way to advertise to this generation is via social media and digital inboxes. However, when it comes to marketing to Millennials, targeted marketing using printed postal mail is the way to go!