Eight ways mortgage pros can use newsletters to build strong, profitable relationships
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21/07/2010 9:30:00 PM
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Most mortgage professionals let their database go to waste. Instead of keeping in touch with their database, they let it rot. That’s a huge waste. Every month you fail to contact your database represents thousands of dollars in lost business. Remember it’s not just a database- it’s a list of people with real needs and feelings.
There’s a powerful two-stage process you can follow using print or e-mail newsletters to make the most of this asset. First, newsletters help you strengthen the relationship you have with your database. Then second, they allow you to increase the amount of revenue you can extract from your list of clients.
People build relationships with people, not businesses
You already know that it’s relationships that keep your business going over the long term. While it’s nice to write one deal, it’s much more profitable to write multiple deals over the lifetime of a client. It’s nice to get one referral but more profitable to earn multiple referrals.
And here’s the thing: people have relationships with other people, not with businesses. And they really like to have relationships with people they know, like and trust.
Of course, you can’t see all your contacts face to face every month. But what you can do is connect with them by using a newsletter that allows your personality to shine through.
Instead of a newsletter packed with rates and mortgage deals, send one that also includes a sense of who you are. You can do that by sharing your opinions or by telling stories of what’s happening in your life. Share the kind of things you might share with people when you meet them face to face.
Instead of receiving another business blast or sale flyer, your clients and referral sources receive a message that’s really from you. That’s how relationships are built.
Relationships require frequent contact or they die
Most people don’t send newsletters often enough – and that’s sad. Like most relationships, your business relationships will die if you don’t nurture them.
Regular contact (at least monthly) is essential. Not only does your newsletter keep you front of mind, but it also gives you the opportunity to communicate your latest offers in an effective way.
Look at it like this: with your regular (interesting and entertaining) people-centred monthly print or e-mail newsletter, you are positioned as the person who is there for your clients and referral sources and has their interests at heart. That makes you the natural choice when they need to finance their home or refer business.
Be the expert, not the salesperson
Mortgage professionals who use newsletters to position themselves as an expert will be more successful than those who just “sell mortgages.” Why? Because people like to do business with people they can trust, and they trust experts more than they trust salespeople. People will come to you when they need financing rather than you having to be continually running after them.
You position yourself as an expert by providing useful, client-centric information about mortgages. Focus on how you can help homeowners achieve their dreams and goals – and avoid their fears. Of course, not every article should be about mortgages (you don’t want to put your contacts to sleep!), but try to slip a couple into each newsletter you publish.
Increase profits with attractive offers
Once you have a method of developing relationships, you can start increasing the amount of profit you achieve from your database.
Your newsletter can be a powerful source of extra revenue by providing an incentive for your contacts to get in touch with you and potentially buy other products or make a referral.
So make sure each newsletter has an offer. For example, offer your clients an annual review. If you manage your database well, you can time a newsletter with this offer to coincide with a client’s mortgage anniversary. Alternatively, a tax-year based article rotation will allow you to promote tax-deductible mortgages in December – the most appropriate time for a client to appreciate this product.
Reach the right person with the right message
The most powerful newsletters contain content that closely matches the interests and needs of your contacts. You’ll get more response when they see that your newsletter is clearly aimed at them. The time involved in creating several newsletter editions will pay for itself in increased business.
If you segment your database, you can mix and match content to create a newsletter with articles and offers that closely match your target audience. Don’t worry, the entire newsletter doesn’t need to be customized to each group – just one article that clearly speaks to them will do the job.
An advanced tactic is to use auto-responder technology to drip relevant articles to targeted readers. For example, put a newsletter sign-up box on your home page that is targeted at first-time buyers. First-timers who enter their contact information into the box will automatically receive information that’s appropriate to them, cementing your reputation as someone who is best positioned to meet their needs. You can do the same on a page about reverse mortgages or tax-deductible mortgages.
Make your newsletter pay
Make the newsletter pay for itself by selling ad space to relevant but non-competitive businesses. Or, trade ads with that business so you can promote yourself to a second customer list.
Some mortgage professionals have found success by providing a free newsletter that real estate agents can use to contact their own clients. Realtors love getting free tools – if you can help them build their businesses, they will happily send business over to you.
A “pass-along” tool to stimulate referrals
A newsletter serves as a powerful “widget” that your contacts can use when referring someone to you. After all, a useful, interesting newsletter is much more attractive than a business card.
Stimulate referrals by publicly thanking people who have sent you clients. This works because people are much more likely to refer when they see others doing the same.
Similarly, publish testimonials from happy clients, and case studies that describe unusual deals. Positive stories from real clients provide what is called “social proof” – something that’s much more believable than anything you say about yourself.
A tool to find new clients
While most mortgage professionals use their newsletters to keep in touch with current clients, a newsletter can also work to find new ones.
Make sure you distribute your newsletter efficiently by sending it to people (and leaving it in places) where ideal clients are likely to hang out. Many mortgage professionals successfully send their newsletter to real estate agents – especially if the articles in the newsletter help complete a real estate agent’s knowledge about financing options.
Leave your printed newsletter in “community nodes” – the places where your clients are likely to hang out. This sort of targeted distraction is much more effective than a door-drop.
Make sure that any newsletter you distribute encourages people to get in touch with you. The best way to do that is to offer free information that people can receive in return for giving you their contact information. Make sure you present that offer of information in a way that telegraphs the benefits of requesting it. People want to get the best deal and avoid making a mistake when financing their home – so produce reports that show people who do achieve those goals.
Simon Payn is president of Ready to Go Newsletters. Dan Beresford, a former mortgage professional in Ontario, is business development manager. For a sample newsletter visit ReadyMortgageNewsletters.ca
What Goes Into a Super-Effective Newsletter?
Mortgage content: to position you as an expert and generate extra business
· How secured lines of credit can help you use the equity in your home
· Tax-deductible mortgages: How they work and why they might make sense for you
· How to pay off your mortgage sooner
· Ways to finance investment properties
· Why every homeowner should have an annual mortgage review
· Reverse mortgages: The truth
Non-mortgage content: to keep clients interested an engaged over the long term
· Local events guide
· Local resources
· Useful household tips
· “How-to” articles that solve typical problems
· Articles that share your likes and dislikes – that help people see the person behind the suit