<< Attract continued from Page 60
Audience modeling, or building larger audiences
from smaller segments, should focus on conversions and value-added interruptions, not clicks.
The concept of geofencing — engaging your
audience within specific locations — is a way to
leverage data or high-performing ad campaigns
and scale them for growth. An example that works
within the “Marketing + Market Fit” mentality is to
avoid statewide ads in Nebraska and geofence in
Lincoln, Nebraska, because it had 24 fix-and-flips
in second-quarter 2018.
Note the days of the week or the times of day
when loan inquiries are occurring, a process known
as timeboxing. Align your ad spending with your
business’ peak-performance times. If marketing
efforts are generating qualified leads from 6 a.m. to
6 p.m. on weekdays but your data shows Saturday
and Sunday as “off days,” for example, spend only
on days where your marketing performs.
Narrow your focus
Calculate your ratio of leads versus closed loans and
scale your marketing efforts by refining them based
on the aforementioned levers, not by scaling your
budget. As you close in on what’s working, you can
then scale your budget for the right volume. Throwing money at a problem early on isn’t the solution.
The data generally speaks for itself. If you earn
$3,500 per loan after expenses, for example, and you’re
spending $10,000 a month on ads that generated
295 leads and five closed loans, it becomes easier to
scale a marketing effort that is cash flow positive, provided you have granularity in lead-to-closed-loan data.
Draw a tight boundary around your initial expenses
— such as the regions, dates and times you focus
on — learn from them, and make forward-thinking
decisions. The mortgage brokers in each market who
breed lasting and healthy competition will survive
because they truly understand the inner workings of
that market at a granular level.
You and your marketing team can stop doing
some things today, such as chasing small victories in
lieu of first addressing the most difficult issues. Stop
investing in your “brand,” which is conflated with
your logo and other “in market” collateral. A brand
is your gut instinct about a product or service. Invest
in borrower trust and education, not your visible
identity and how it’s perceived. Simplify everything.
If you can’t measure it, you probably don’t need it.
Marketing task list
It’s strange to say, but very few people in the commercial mortgage brokerage industry do marketing
using these “Marketing + Market Fit” steps. And few
companies have hired internal or external staff to
correctly address core marketing functions.
If you choose to hire a marketing manager, their
typical task list might look something like this: Optimize the company’s pay-per-click campaigns, drive
more website traffic, improve SEO rankings, make
the company blog more effective, find sales staff
more and better-qualified leads, increase conversion
rates, and increase the number of e-mail subscribers
opting in. Many marketing professionals abandoned
this mentality years ago. Data science and calculated
decisionmaking are the future.
Mortgage brokers within the private-lending
sphere often fail at creating this degree of marketing
visibility. The great news is, if you can do it, you’ll have
a serious competitive advantage. Given that you have
products designed to fit your market, improving your
“Marketing + Market Fit” approach should result in a
higher return on investment while reducing customer-acquisition costs. You’ll then have a conduit for
distributing value-added interruptions across your
potential client base and for starting meaningful
conversations with borrowers and lenders.
n n n
In conclusion, marketing efforts have a direct correlation with loan values, lead volumes and conversion
rates. It’s a seemingly undervalued or misunderstood
aspect of the commercial mortgage industry, and
the tech industry may not yet have a grasp on the
quantitative side of this business.
The inability to objectively identify borrowers
and true sources of revenue within specific markets
is costing many lenders and brokers. There is a data-backed argument that investing in customer-acquisition efforts with objectivity and specificity
drastically impacts your company’s bottom line. n
is the senior
Partners. Triumph recently formed
a joint venture with Brixton Capital,
a San Diego-based real estate inves-
tor and operator, whose principals
have a combined 40-plus years of
experience in property development
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at (616) 635-9732 or