As a staunch advocate of time saving technologies over labor intensive practices, I can recommend some nice solutions that have worked tremendously for myself and others.
First off, you don’t have to spend $50-$100k on technology to get more efficient. While dedicated servers, thin clients, and robust PBX/T-1 systems are very nice, in 99% of cases it is gross overkill by the business. Technology upgrades should be viewed as an investment that creates an immediate and positive return (ROI). If your ROI does not increase within 90 days of implementation, you probably overbought.
Second, Cost Per (Customer) Acquisition (CPA) should decrease, post implementation. CPA equals Gross Expenses divided by # of loans closed, so if you close 10 loans and your gross expenses are $15k, the CPA is $1500 per loan. Close 10 loans with $10k in gross expenses and the CPA drops to $1000 per loan, a 33% increase in profits.
Optimizing these two ratios comes down to one relationship, time and money. Proper tech upgrades are the best way to spend less time making more money.
The ‘Digital Rolodex’
ACT!, SalesForce and a number of other database software programs may be personally configured to streamline Mortgage Broker Customer Relations Management (CRM) and Marketing to the most efficient of levels.
The toughest part of using a database is creating (a good) one and (initially) remembering to use it every time you have contact with a client and/or something related to their scenario. Digital archiving of files, especially the wealth of information in closed and denied files that lay dead in the storage room, must be a tight process. A database is only as good as the accurate information within it. Misfilings can lead to embarrassing circumstances.
Once created, the cultivation of your proprietary client database creates a powerful marketing resource. Start by cataloging clients by Name, Zip Code, Credit Score, Loan Amount, LTV, and Close Date. Set reminders, layout your schedule on the calender, copy all e-mails, notes, and secondary information: birthdays, favorite sports teams, relative personal financial strategies/situations.
You can develop highly targeted marketing campaigns based on these specific client factors, instead of the usual ‘Rates are low!’, ‘Free Cruise with Mortgage’ crap. Learn to ‘touch’ your clients at least 3 times per year with an e-mail, letter, card, small gift, etc. Stay in their conscious and clients will pay it forward by remembering you every time mortgage enters a conversation. Continued communication is the lubrication to any lasting relationship, especially in the turn-em and burn-em ‘transactional’ mortgage industry.
The ‘investment’ for a database software license is less than $100 per user per year. Considering time saved and increased client satisfaction/retention/referrals you can receive, the ROI is immeasurable. Take the time to input comprehensive client information into an easy to access database and cultivate that information, you will save untold hours in time and money and watch your referrals go through the roof.
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