The Big Debate Continues – Internet
Mortgage Leads vs. Direct Mail
by: Brian Rice
The world is flat. India is one of the fastest growing
economies and SMS and SEO are the buzz words of the present moment. Content is
king and the word “marketing” should be changed to
what-the-heck-works-these-days-to-get-customers.
As it relates to mortgage marketing and the industry, it's
important to understand how to differentiate direct mail with direct marketing
over the Internet (including internet leads and email marketing). As a direct
marketer, I always encourage my clients to diversity their tactics, by using a
hybrid direct marketing approach. One that combines the traditional method with
the interactive approach.
The debate around Internet mortgage leads versus direct
mail has only grown stronger within the past few years. When consumers search
for a mortgage on the Net, typically they'll come across big name companies that
spend a fortune on monopolizing the Web through online marketing strategies (i.e
Lending Tree). Internet mortgage lead providers usually fall under the following
three categories:
Online Lenders
Affiliate Marketers
Internet Marketing companies that specialize in the mortgage market,
but aren't necessarily licensed to sell mortgage loan products or services.
The positive aspects of obtaining Internet mortgage leads
is that in a sense, these leads are actively searching for a mortgage broker or
lender to assist them in their process. The downfall is that if they are doing a
search on the Internet, then most likely they have contacted a few companies (or
several) to get information (in other words, you're not that special). If you
have received the leads directly through your online marketing efforts and can
provide them with a mortgage service, then great, it might be your lucky day.
Just make sure you contact them before your competitors do. If you received the
leads from an “online marketplace that connects you to a network of
lenders”, then be careful. These leads were not only sent to you, but may also
fall in the lap of your various competitors. In which case, I would throw
caution to the wind. In the case for exclusive leads, make sure you trust your
lead provider and prepare for the high price you'll have to pay to be on the VIP
list.
The positive aspects of running a traditional direct mail
campaign is that:
1) If prospects that received your offer are interested,
they will make a concerted effort to contact YOU, not Joe Mortgage from the
Internet or Joe Online Marketing Company, or Joe I Have 20 Companies That I Will
Send This To and go on vacation next week with all the money I just charged
them.
2) They may save your information for a later date when
they need it or pass it to a colleague or friend they is actively seeking your
service.
3) You build brand recognition. Prospects have received
your offer a few times and will go to you when they are ready. After all, you
have reached out to them in the old fashioned way. You obviously have good
manners since you addressed them by first name and the hand written letter from
the CEO was a nice boost to the ego.
The issues that one may run across through the traditional
direct mail approach is that response rates are typically lower and a consistent
on-going mail campaign is required.
In closing, it's important to align yourself with the
right direct marketing strategies, as long as you understand what's to be
expected. If you put the necessary time and budget required to obtaining quality
and targeted data and utilize your creative resources to get a compelling
message out, you should have no trouble acquiring new customers that respect the
way you conduct your business.
About The Author
Brian Rice is the President of Red Clay Media, a full
service direct mail company specializing in the mortgage industry. He can be
reached at brice@redclaymedia.com or
visit www.redclaymedia.com. |
