5 Ways To Boost Profitability In Your Mortgage Business was written for Playlouder by a contributing author. Please note that contributing opinions are that of the author. They are not always in strict alignment with my own opinions. –Joe.
With an annual expected growth rate of 2.15% for 2023-2025, revenue in Real Estate is projected to be 395.4 billion in 2023.
While the industry continually grows, the demand for mortgages grows with it. Hence, mortgage companies have more opportunities to originate loans, make serious profits, and create fantastic company growth.
Nonetheless, if you own a mortgage business, you should always be looking to re-engineer your business practices to cut costs and boost profitability. The following are five tips to consider:
Adopt Targeted Marketing Strategies
Targeted marketing is one of the best ways to reach the right audience for your loan products. Ideally, the more you onboard clients, the higher the chances of closing more loans, boosting profitability. Below are some targeted marketing strategies you'd want to implement:
Social media marketing
Social media channels act as ready-made communities for mortgage businesses to tap into and engage with potential customers. In addition, many rely on social media for authentic reviews and product recommendations before purchasing.
Therefore, you can leverage your target audience's social networks to share interactive content with prospects, capture qualified leads, and add them to your sales funnel.
For instance, you can share targeted mortgage ads on Facebook with users who are potential borrowers. Additionally, your brand's message should provide solutions to customers to increase the chances of them responding and associating with your products.
The good thing is that Facebook collects valuable data to help you identify the right target audience. For example, you may target based on demographics, age ranges, interests, and those who already like your page.
You can post mortgage product announcements, mortgage tips, client success stories, mortgage trends and statistics, and life events on your different social platforms. It allows you to add value to your customers and position yourself as a trusted mortgage lender.
A website is essential for mortgage companies since many customers browse the web to search for mortgage services. A website also allows you to advertise your mortgage products effectively.
Furthermore, to deliver an excellent user experience, remember to use clear navigation, personalize your offers, update your content, and use plenty of visuals such as photos and videos.
The better the customer engagement levels, the more leads you generate, and the higher your chances of making sales.
You can write blog posts to engage and educate prospects about mortgage loans. Informative and entertaining content reflects well on your company as it portrays you as an expert in the mortgage industry. The industry refers to this as content marketing.
You can also leverage search engine optimization (SEO) tactics such as link building, appropriate keywords, and faster loading pages to rank higher on search engine results pages (SERPs). This way, you can capture more organic traffic and increase conversions.
Affiliate marketing opens new audiences for your mortgage products. For instance, influencers can effectively market your products to millions of followers.
Luckily, with affiliate marketing, you pay based on performance, so you get value for your money. For example, you can pay your affiliates for every sale or lead generated.
You'd want to implement the above marketing tactics to expand reach, optimize purchase opportunities, and ultimately boost your mortgage business profitability.
Automate Your Business Operations
Investing in technology to streamline daily processes and improve operational efficiency is best. For example, you can automate the loan process using mortgage origination software.
Loan officers can deliver mortgage documentation, such as disclosures or closing paperwork, online so that consumers can view, upload, and electronically sign forms at their convenience. Therefore, your team can spend less time performing repetitive tasks and serve more clients.
Automation reduces possible errors and costs associated with manual approaches. Below are other ways automation boosts profitability:
Improve your borrower experience
Customer experience is critical to brand image and value. Modern consumers are tech-savvy and want a seamless loan process from application through closing.
Luckily, with automated forms and email workflows, your clients can access information anywhere and anytime and help themselves. For instance, borrowers can complete the onboarding process during loan application with little or no human intervention.
Also, with digital tools such as live chat and chatbots, you can automate customer support and provide instant solutions to clients' problems. And when your borrowers are impressed, it positively impacts sales and your bottom line.
Streamline operations and associated costs
You can automatically capture, index, and share loan documents online, eliminating the need to ship paper or hire workers to photocopy, print, or store paperwork. Lowering operating costs increases the net profit.
In that case, you'd want to harness technology to scale your mortgage processes and unlock more profitable opportunities. For example, the faster you can process customer loans, the sooner you can focus on acquiring new leads and selling more loan products.
Build Positive Relationships With Your Clients
Maintaining positive relationships with current and past customers establishes long-lasting partnerships. It helps clients develop a strong connection with your brand, thus growing customer retention. Below are some ways to build positive relationships:
Get and implement customer feedback
Follow up with your existing and past clients to collect feedback about their experiences with your company. This can provide you with insights on how to improve service delivery and meet customer expectations. It also shows your clients that you care, and when they're happy, they'll be more likely to refer you to other prospective borrowers.
Appreciation to your client’s loyalty can be expressed by sending gift cards during important occasions like birthdays. Such messages mean a lot to customers, and they're more likely to choose your company the next time they want to purchase a home or refinance.
Ultimately, you'd want to nurture positive relationships with your existing and potential clients to stand out as a trusted and credible lender.
Network With Other Industry Professionals
Networking with other real estate industry professionals like realtors and title agencies is an ideal way to expand the reach and acquire new borrower leads. In addition, you'll have the chance to market your products and showcase yourself as a reputable lender. Therefore, the professionals will feel more confident to refer clients requiring loans to your company.
Keep Up With The Latest Industry Trends
Stay up-to-date with the current industry trends to show up as an industry expert to your clients. And along with using the information to scale your business, you'd want to share relevant details with your current and prospective customers.
This includes how the industry trends will affect lending and the strategies you're devising to ensure it works to their advantage.
Notably, trends present new ideas and opportunities, and customers are more likely to choose your brand to make their purchase decisions more meaningful.
One of the primary objectives of every business is to achieve higher profitability. Therefore, as you explore ways to boost your mortgage business profitability, above are some tips to consider. Also, remember to raise the marketing bar and leverage technology to stay visible and connect with more prospects.