We all know that our client database ought to represent our #1 source of business. However, I’m often asked how much one ought to budget toward marketing to existing clients.
My recommendation:
An easy rule of thumb is to allocate $1 per month toward your Mortgage CRM budget. So if you have 500 clients in your database, you’re monthly CRM spending should be $500. Looking at this from an ROI perspective, what type of return should you expect?
ROI Analysis:
According to the Mortgage Bankers Association, approximately 8.7% of your database will be in the market to refinance each year. Meanwhile, we learn from the US Census Bureau that 6.8% of the US population will buy a new home each year. Thus, 15.5% of your database is likely to be in the market for your services each year – a significant number!
Let’s go back to the 500 client database. According to our assumptions above, approximately 78 of your clients will be in the market for a mortgage in the next 12 months. I’m going to be optimistic and assume you’ll capture half of these deals doing what you’re doing today. So a 500 client database yields you 39 closed loans (approximately 3 loans per month). Not bad.
But what happens when you’re capture rate increases from 50% to 75%? The same 500 client database yields 58 closed loans this year (approximately 5 loans per month).
In summary, the $500 spent on Mortgage CRM is the least risky, highest return marketing dollars you can ever spend on your business.
The Top of Mind Networks Surefire System
This analysis led us to create the mortgage industry’s most comprehensive CRM solution. When our clients close a loan, they enroll the borrower into our Surefire System. For $60, the borrower receives:
- A custom-made closing gift that keeps you “Top of Mind” for years following the transaction
- A monthly email campaign that positions you as a true fiduciary to your client
- 24 letters and greeting cards over the next 5 years (we do the work, pay for the postage, etc.)
Here’s the quick math: $60 per client covers you for the next 5 years (60 months). That’s the $1 per month investment we’re talking about. If you’re looking to increase your production by 2+ loans per month without risking exorbitant marketing dollars, you owe it to yourself to check out Top of Mind Networks.
It’s good to be posting on this blog again! Thanks to the great folks at Wanna Network for making it possible!
