It’s no secret that customer buying habits have changed dramatically in recent years. We took a decade-long leap in US e-commerce penetration in just 90 days at the start of COVID. Additionally, the mortgage industry is changing. As readers of this article know, in addition to traditional banks, there are more direct-to-consumer companies trying to reach mortgage buyers.
Moreover, when consumers make a decision on a specific mortgage option, they undertake a complex journey: researching information on websites, gathering opinions on user forums and opinion sites, and browsing social media to learn about other people’s experiences with a business. This reflects a congested and confusing buying journey for mortgage providers aiming to pique buyers’ interest in today’s highly competitive buying climate.
As consumers have more information and options at their fingertips than ever before, how can banks, non-bank lenders and other mortgage companies differentiate themselves while focusing and maximizing resources? marketing? They need to invest in digital marketing in a smart, efficient and data-driven way to ensure they stay competitive to enable growth without wasting dollars by blindly following money-backed companies that spread budgets more freely .
If they can “hijack” consumers’ attention at the right time in their journey and invest in the right places to ensure ROI – putting themselves first as the best choice over a competitor’s – they greatly increase their chances of closing a sale.
Here are three recommendations to achieve this:
Link early funnel activities to purchase
When clients are still early in their journey, one of the best ways to secure their interest is to do so long before they decide where to get their mortgage. This requires knowledge of the early motivators that bring consumers down the buying journey, as well as the ability to tie them to final conversion and the ability to do so in a personalized way for each segment (e.g. those who have low credit ratings, all the way to high net worth individuals). With an understanding of the early funnel activities that drive sales, such as consumer habits, patterns, and trigger points, mortgage lenders can step in at the right time with the information consumers need to shorten the lead time. between intention and actions and maximize return on investment. marketing dollars.
Take advantage of prescriptive analytics
Marketers in mortgage-focused businesses need to shift the marketing paradigm from reactive to proactive to prescriptive. This means moving from reactively monitoring competitive and market data to using tools like AI-powered real-time analytics, which can proactively predict outcomes and prescribe actions to take. undertake. With these recommendations, they are able to determine what they need to do to generate ROI, both by increasing conversions and reducing acquisition costs.
Encompass all datasets
Some datasets are easy to obtain. However, mortgage companies need to make sure they are looking at everything that is available. Considering this, they should look for solutions that can assess all data sources, including unstructured data such as mobile and desktop browsing activity, social activity, etc. They’ll get a complete picture of mortgage buyers with this information, and they’ll be able to nurture leads in a very targeted way, reducing the chances that they’ll interact – and ultimately convert – with a competitor.
Here is a concrete example of these recommendations in action:
With analytics technology that can process early funnel activities related to purchase and comprehensive data sources, a mortgage company can determine correlations. For example, there is a unique online behavior identified for medical professionals converting by getting a mortgage. This type of technology can determine that Policygenius.com (over 900,000 monthly visitors), Bestcompany.com (over 800,000 monthly visitors) and Investorplace.com (over two million monthly visitors) act as trigger points for the segment of healthcare professionals who convert with a mortgage application. The information collected shows that they interact with these websites 40 times, 16 times and 12 times, respectively, more than the rest of the population. From there, a mortgage lender can focus their marketing dollars and personalized messaging on these websites to drive traffic to their business, rather than a competitor.
Additionally, Moneyunder30.com (over 900,000 monthly visitors), Biggerpockets.com (over 2.4 million monthly visitors) and Moneycrashers.com (over 800,000 monthly visitors) act as trigger points for the segment. real estate investors who end up converting by taking out a mortgage. They interact with these websites 29 times, 33 times and 16 times, respectively, more than the rest of the population.
These are obviously very specific examples, but as the buying journey becomes more complicated and consumer buying behaviors become harder to track, mortgage providers need a way to understand the complexity. consumer journeys so they can influence buying decisions in their favour. This is made even more difficult with the elimination of cookies.
Using the approaches above, mortgage companies can determine how to segment consumers based on their online behaviors, fully understand the consumer journey, and tie specific behaviors to purchases of other products to enable them to nurture consumers. prospects and target consumers in the right places. maximize the return on investment of marketing dollars rather than investing unnecessary resources and speculating that are unrelated to actual conversions.
It all sounds difficult, but with the right tools, it doesn’t have to be. While there are consumer data platforms (CDPs) available to gain insight into consumer behaviors, they only solve part of the problem. Mortgage companies really need “external” CDPs that can track what customers do before, during, and after their online interactions with them, as well as where they turn to their competitors.
Mortgage providers can then act accordingly based on the data gathered from solutions like these to maximize marketing dollars. They can achieve this while complying with increasingly stringent privacy requirements, such as GDPR and the California Privacy Act.
If mortgage lenders aren’t currently leveraging the tools available to gain visibility into consumer behaviors and trigger points online, they’re missing out on big chances to not only increase sales and conversions, but also reduce acquisition costs, find untapped niches, and reduce dropouts and dropouts. Is this something your business can afford?