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!

Big shout out to Dustin Dempsey of Playforward Designs and Mark Madsen for creating an easy-to-use and robust site for us.

I’m going to keep this blog alive but if you’re looking for 10x the ideas, execution strategies and straight dope on mortgage CRM, be sure to subscribe to our RSS feed at the Top of Mind Blog.

Happy New Year, let’s make 2009 fun and profitable.

Mark Green, Top of Mind Networks

Happy Holidays everyone.

One of the most common objections I face in selling Top of Mind Networks comes from the “do it yourselfer” who prefers keeping CRM activity in-house.  What follows is a brief overview of the main reasons people typically give me for doing it themselves along with my rationale for outsourcing as much Mortgage CRM activity as possible.

Reason 1:  Cost

Of course price is typically the #1 objection we in sales get on a regular basis.  So here, I’m going to break down what it would likely cost someone to do themselves what we do for $50.

Send 24 letters and greeting cards via first class mail:

• 25 stamps @  42 cents per stamp = $10.50 in postage
• 25 letterhead quality envelopes with high quality greeting cards @ .50 apiece = $12.50
• Labor cost of having an assistant print, stuff, stamp and QC 25 letters/cards (let’s assume 1.5 hours of labor cost at $15/hour) = $22.50

Total DIY cost:  $45 (so the do it yourselfer saves $5)

Reason 2:  Control

Lots of do-it-yourselfers are control freaks, and I get that.  When it comes to some things, I’m a control freak too.  Licking stamps and stuffing envelopes is not one of them.  The time sacrificed conducting manual labor for a mortgage professional would be much better spent in the field meeting with new referral sources, networking, etc.

Reason 3:  Quality

Sometimes, people tell me that they like signing everything personally.  I think that’s great - but again, the time spent on this function could be better utilized in the field.  The Top of Mind Networks follow-up program is designed to look and feel as if it came off your desk.  Each letter and greeting card is personalized with your company logo, professional photo, even your digital signature!

So as 2009 nears and you’re wondering how to take your mortgage business to the next level, please consider outsourcing functions like your Mortgage CRM to a specialist.  You might spend an extra few dollars, but the precious time you’ll save will generate huge returns – and you’ll never have to lick a stamp again !

Mark Green – Top of Mind Networks

I don’t think it’s right to just talk about success stories in a blog.  I think there’s just as much, if not more, to be learned with our failures.

Top of Mind Networks’ Surefire System features a component we call our “One to One” email solution.  This solution features three email “Themes”, each with quarterly frequency:

Theme #1:  Quarterly Mortgage Checkup (gives the borrower a snapshot of how their current loan compares with current rates/programs.

Theme #2:  Neighborhood Home Sales Report (gives the borrower a report of which homes sold within a predefined radius within the past 90 days)

Theme #3:  Identity Theft Protection Alert(s) (educates the borrower on the benefits of placing a “Temporary Fraud Alert” with the credit repositories as a way of preventing identity theft.

We executed on Theme #3 last week and found the following:

1)  The subject matter was too long and complex for the reader to digest – The ID Protection theme needed to be explained in detail for the reader’s benefit.  The bad news is that long copy is intimidating for the reader – never a good thing.

2)  For some reason, we saw a much higher unsubscribe rate on the ID Protection theme than anything we’ve ever done.  I think this happened because of #1 above.  If your copy is too long, people are just going to delete or unsubscribe.

3)  Maybe a saving grace here is that we received quite a bit of positive feedback from those who took the time to digest the content and take action.  But I’m never happy when #1 and #2 happpen above.

So it’s back to the drawing board to replace the ID Protection Theme in our campaigns.  Here’s what I’ve re-learned though.

1)  Keep the creative short and simple – preferably the entire content of the email should appear above the fold.

2)  Stay away from highly sensitive topics if possible - ID Theft is an important topic but with all the “phishing” going on out there, you’re better off keeping any messaging on this subject extremely generic. 

3)  Trust your instincts -  If you read an email you’ve written and it takes more than 10 seconds to get the main idea, rewrite it and scale it back.

If you’d like to see a sample of the actual creative I’m discussing above, please visit our website and contact me through our web form or give our main office a call at (866) TOP-MIND.

Mark Green, Top of Mind Networks

Last Tuesday, the Fed announced that they’ll purchase up to $600 billion in mortgage backed securities.  Mortgage rates plummeted dramatically for a short while, but began heading back up later in the day.  You probably got a few refi applications, but not as many as you’d have liked.

I’d like to thank Scott Evans of Family Mortgage of Georgia for this month’s Innovation.  Please click below to see our:

“Rate Lock – Action Plan” Letter

Top of Mind’s Rate Lock Letter

The Idea:

Scott Evans was able to lock 14 loans in a 3.5 hour window because he had established Action Plans with his client database, allowing him to lock loans immediately upon a rate drop.  With precious little time to act, Scott spent less time chasing down client permissions and more time locking loans.

The Execution:

Let Top of Mind send the “Rate Lock – Action Plan” letter to your contact database.  It will get the phone ringing immediately.  You’ll want to review each client’s scenario and determine a target rate/program.  So the next time the market moves dramatically, you’ll be able to act immediately – and lock more loans.

The cost:

$1 per letter – signed, sealed and delivered!

Please call or visit our site if interested.

  (866) TOP-MIND or http://www.topofmind.com

One of my earlier posts discussed the events of Tuesday, November 25th, and how the Top of Mind Networks Surefire System helped our clients identify literally thousands of refinance opportunities – automatically.

I guess we at Top of Mind learned what seems like a funny lesson now – our system is so powerful that the sheer number of “Opportunitiy Alerts” we sent our clients on 11/25 actually caused many of the major ISP’s like Yahoo, Hotmail, Bellsouth, etc. to temporarily blacklist our domain!

You see, when we identify a potential refinance opportunity on our clients’ behalf, we send them an email we call an “Opportunity Alert”.  For example, if you have a borrower on a 30-year fixed mortgage at 6.5% and rates suddenly drop to 5.25%, this triggers our system to notify you via email.

The events of 11/25 set off a frenzy of refinance opportunities in our Surefire System.  We began sending thousands of legitimate refi alerts, and even the ISP’s were overwhelmed by Surefire’s success .

Obviously, we’ve figured out a way to ensure that we prevent this from happening again in the future.  But I couldn’t help but share the experience.

If for some reason you’ve stumbled upon this blog and would like to view a live web demonstration with me, please contact us by phone (866) TOP-MIND or visit our site at http://www.topofmind.com.

Mark Green, President

Top of Mind Networks

As I write this post, the Fed has announced they’re buying Mortgage Backed Securities and rates dove 75 basis points on the news – almost instantly. 

Needless to say, there’s some gold in your database.

If you had Top of Mind Networks’ Surefire System, you’d be receiving “Opportunity Alerts” notifying you which borrowers could benefit from today’s surprise rate reduction.  You’d be able to call and get them qualified instead of slogging through your LOS looking for prospects.

The last time market rates plunged like this, Scott Evans of Family Mortgage of Georgia locked 14 loans in a three-and-a-half hour period.

If you don’t have Surefire, you’re missing out on Immediate Lending Opportunities.  Please contact us at (866) TOP-MIND to schedule your free web demonstration today.  Or you can visit our site at http://www.topofmind.com.

In speaking to originators all over the country, I’m hearing that many of you are struggling to make ends meet.  Inevitably, when facing declining revenues we all tend to pull back the reins on spending – and for good reason.  To be honest, we at Top of Mind Networks have reduced our operating costs by nearly 50% over the past six months in anticipation of leaner times ahead.

However, where we refuse to cut back is in our client retention management budget – and here’s why…

Tenet 1:  In difficult financial times, consumers become thriftier.

Duh.

Tenet 2:  In difficult financial times, businesses become thriftier.

Double duh. 

Tenet 3:  It costs 12x more to retain an existing customer than it does to capture a new one.

That’s an absolute fact.  Most loan originators have a problem we in the CRM field call the “leaky bucket”.  The LO’s full energies and marketing budget are applied toward customer acquisition, with little to nothing designated for client retention.  During the mortgage boom of 2003-2005, it was pretty easy to find a new borrower for every one you let slip out the bottom.  Obviously, the same is not true anymore – nor will it be for quite a while.

My Point About Price Sensitivity:

I don’t know about you, but the idea of rolling up into the fetal position and waiting for the next “boom” isn’t appealing to me.  We absolutely must find a way to build our business – even in difficult times.  Easily said but difficult to do when you’re trying to reduce costs.

Research shows that roughly 1 in 7 of your past clients will re-enter the market sometime in the next 12 months.  (Please check out the first chapter of this quick video for a few industry statistics.)  One’s home mortgage is typically the largest purchase they’ll ever make.  

Fact:  A repeat borrower is far less price sensitive than a new client.  Why is this?  You’ve already done a transaction for them – hopefully you did a fantastic job.  Even better if you’ve successfully deepened that relationship after closing through mortgage CRM techniques.

If you’re looking for that next deal, look no further than your past client database.  Has one of your borrowers listed their home for sale, unbeknownst to you?  Our Surefire System identifies this opportunity and notifies you immediately.  Can one of your borrowers potentially reduce their rate or payment?  Surefire monitors your database for refinance opportunities every day.

Remember, in tough times we have a tendency to stick with what we know.  The key is to stay “Top of Mind” with your past clients, deepen those relationships and plug those holes in your leaky bucket.

Mark Green, President – Top of Mind Networks

I just got back from Mortgage Success Source’s Mastery Business Plan (MBP) event in Las Vegas.  If you’ve never been, I highly recommend you check it out.  The site is www.masterybusinessplan.com.  I always come home inspired and ready to implement new ideas.

Perhaps my favorite thing about MBP was networking with many of the industry’s top loan officers.  A common subject of discussion was the question:

Why should I outsource the CRM function versus doing it myself?

Here are my top 5 reasons for why I think it’s so important for LO’s to outsource their day-to-day CRM:

1. Your time is too valuable to be writing letters and stuffing envelopes.  In other words, you should be focusing your time on revenue generating activities such as meeting with realtors and/or other referral sources, prospecting for new business, etc.
2. Mortgage CRM is too important to let slide when you get “too busy”.  I find that many LO’s only execute on their database management when time allows.  Trust me, those loan servicers are marketing to your database without fail, so you cannot afford to fall asleep at the wheel.
3. Cost/Efficiency.  Many do-it-yourselfers choose that route based on the perception that they’ll save money.  In fact, the opposite is likely true.  When factoring in labor, materials, postage, and technology costs, most of our clients find that the Top of Mind Networks Surefire System saves them money in the long term.
4. By outsourcing the “elbow grease”, you’ll have more time to “follow up”.  Industry statistics show that you should expect a 1% response rate on direct mailings – however, those response rates skyrocket to 5% or better when combined with a follow-up phone call.  Thus, we recommend outsourcing the mailing function – and applying your time to following up your CRM mailings with personal phone calls to recipients.
5. Your “core competency” is closing loans – outsourcing allows you to keep it that way.  Top of Mind Networks is 100% dedicated to Mortgage CRM – we eat, sleep and breathe this stuff.  We’re constantly innovating, writing new content, and keeping our clients on the cutting edge of what’s working.  For example, our new Neighborhood Home Sales Report email campaign has been a huge hit!  Imagine being able to educate your entire database on home sales in their neighborhood without having to lift a finger? 

For a personal demonstration of our Mortgage CRM service, please visit our site or give us a call at (866) TOP-MIND.

Mark Green, Top of Mind Networks

At Top of Mind Networks, we’ve asked hundreds of mortgage professionals what they give borrowers as a closing gift.  Here are the three most common answers:

1)  Nothing

2)  Gift Basket

3)  Gift Certificate

None of the three ideas above are ideal.  Here’s why:

a)  They’re expensive – a nice gift basket/certificate will typically set you back $50 or more

b)  They’re used and then forgotten about – with little or no branding for you

We’ve created a closing gift that is both affordable and well received.  We call it “The Business Card That Never Gets Thrown Away”.  Here’s how it works:

After closing, you’ll let Top of Mind Networks know that you’d like to have a personalized self-inking address stamper sent out to your client.  We’ll manufacture the gift and will mail it to your client along with a professional greeting card (as part of our post-close follow up program).  Here’s the greatest part of all… your client is going to use this address stamper every time they pay bills or send mail each week.  Every time they pick the stamper up, they’re looking at your name, photo and contact information!  In other words, you’re staying “Top of Mind”!

If you’re interested in learning more about this idea, please contact us at (866) TOP-MIND or fill out our request form at www.topofmind.com. 

- Mark Green, Top of Mind Networks