Here is Part 2 of the article: How Do You Stack Up? Part 1 can be found here: Click here for Part 1
A Database
Each year I speak to thousands of loan officers. Would you like to take a wild guess as to how many have a true database? (Other than sticky notes) I would guesstimate that less than 10% have a database that is marketed to, and utilized. Scary isn’t it? A true database is one of the most profitable assets you could have in your career, and yet 80 – 90% of loan officers don’t take the time to create one!
This is yet another example of how the problem is often with the loan officer, and not “the down market” as so many seem to claim. (I reiterate that yes, things are more difficult in this market, but “difficult” does not equal “impossible.” Rather, it means that you must be meticulous in your execution of a sales and marketing strategy) It is estimated that between 10 – 15% of your database will use the services of a loan officer over the next 12 months. Why should those closings end up anywhere else but in your pipeline?
Over the course of a year, adding at least 1,000 new prospects to your database (Preferably more) should be fairly simple. But assuming worst case scenario here, that’s still 100 – 150 individuals who will need a loan within 12 months! If you haven’t taken the time to capture these names, collect contact info and drip market to them, then you’ve just forced yourself to work harder than necessary; and who wants that? Why not take the time to setup a database now? (It doesn’t have to be super fancy, just an effective means to compile, sort, and market to your prospects and past clients)
Most common reason this element is missing: Many are uncomfortable with setting up or using this technology, time management, many don’t place value on building a database due to the more long term payoff (Many prefer “now” business)
Differentiator
What sets you apart from your competition? Do you truly have a unique selling proposition that you have prepared to deliver to your niche market? I once had a business coach challenge me with this: I want you to write down just 5 things that make you different from your competition, and you cannot include “service” within that list. It must be specific, and I want to feel convinced to do business with you (Or at least to speak with you further) after reading your list… Oh yea, I want this done within the next 10 minutes!
Could you do this? Can you think of 5 convincing differentiators right off the top of your head? What are your skills? What do you do differently? If you run your business and conduct yourself exactly the same as the hundreds of loan officers within your immediate vicinity do, then how can you expect to be treated any differently than all the others?
Sales is no longer about what you say. Rather, effective sales hinges on how much of what you claim is believed by your prospects, and demonstrated. People are tired of empty claims… People want to see proof that you’re the obvious choice. What have you prepared to prove yourself?
Most common reason this element is missing: Most loan officers have not taken the time to learn proper skill sets that differentiate, Most have not taken the time to identify their strengths (You probably have more going for you than you think! Until you identify these reasons, then how can you tell the world about them?)
Call to Action
I used to avoid asking my prospects for referrals. I did this because I had convinced myself that most people would not be willing to give me the name and phone number of their friends and family members just because I asked… (And I was right too… “Most” is the key word here though…)
However, once I added this crucial element to my business plan, I found that 1 out of 10 - 12 closings actually gave me a solid referral worth pursuing. (Not just a random name) Now that may not seem like much. That’s less than 10% and many of you may be thinking that this is not impressive. However, I would like to point out that the time it took me to ask was less than 20 seconds, and this was the only change I had made to my closing schedule to get one of the hottest leads you can get: a personal referral.
The simple act of asking for something landed me with an extra closing each month. The point being made here is that your prospects are not mind readers. They need to be told what the next logical step is, and you need to make it easy for them to take that next step. No guess-work!
Your marketing will be far more effective when you provide credible reasons for taking action today. Use time limits, restrict numbers, make irresistible offers. There’s a lot of competition out there screaming for your prospects attention, so you need to make your message stand out.
Here’s a little technique I use often to help craft effective calls to action. Imagine that your prospect is standing right here in front of you. Write down what your top 2 competitors messages are likely to be. (Grab some of your junk mail, or listen to the radio to hear what the common advertisements are from your competition) Now your task is to assemble a message that beats out those other two.
Repeat the ads aloud and imagine how this sounds to your prospect. Is it compelling? Does it make you want to take action? It’s a simple exercise, but the act of viewing it from a new perspective can help you to improve your results exponentially.
Most common reasons this element is missing: Little time dedicated to crafting the message, Inexperience, Rush to get the message out
So how did you do? Do you have all of the proper elements included in your business? If not, why? What plans do you have in place to incorporate them? How soon? Success need not take long. Most likely, you already have a lot going for you. You will only strengthen your current situation by giving serious attention to the information provided above.
In fact, here’s a quick way to rate your current strategy. We’ve set up a self-test page at www.loanofficermarketinglab.com/selftest - Simply fill in the form with your best answers regarding why you’re different from your competition. It’s that simple! (You can also just do this yourself with a pen and paper, but if you want a 3rd party opinion, we’re happy to help) A response will be sent to you with recommendations in less than 24 hours.
Good luck! Make this your best week ever!
Chad Weber
Loan Officer Marketing Lab
www.loanofficermarketinglab.com
