Converting a mortgage lead into a sale or closing requires a strategic plan and a lot of work. Earning the trust of new leads is never easy and everything you do and how you do it plays a significant role in whether you close on a deal or your lead moves to the competition. But how do you know if your strategy is working? What is a good lead conversion rate and how can you improve your mortgage lead conversion rate?
What is lead conversion?
Lead conversion is a process that involves converting your leads into customers. It involves a nurturing strategy that works to build trust with your leads. While every business has a different method when it comes to lead conversion, the goal is to build trust in your services and/or products through quick follow-up and continued contact. The higher your lead conversion rate is, the more successful your business will be.
What is the average mortgage lead conversion rate?
In general, the average mortgage lead conversion rates are between 2-3%. However, with the right strategy in place, a good loan officer may be able to boost that number to 4-5%.
How to calculate the lead conversion rate?
Calculating your lead conversion rate can help you see exactly where you may need to make some improvements. To find your individual conversion rate, simply divide your number of closings by the total number of leads. This will give you your lead conversion rate at any given time.
How to improve your lead conversion
The goal of every successful loan officer is to improve their lead conversion rate. If your rates are low, it may be time to examine exactly how you are communicating with your leads in order to start building trust and nurturing a relationship right from the start.
Here we offer some tips that can help you boost your lead conversion.
Maintain an up-to-date lead database.
Lead conversion is all about building trust and relationships with your leads. This nurturing must begin immediately and requires regular follow-up to build this trust. It can become a very time-consuming part of your marketing strategy, and, without the right tools, it is very easy to forget tasks, which allows leads to fall through the cracks. A solid lead database or customer relationship management (CRM) program allows you to organize leads, assign specific tasks for lead follow-up, and even automate many of these different tasks, ensuring that you provide the information your leads need and maintain regular lead contact.
Improve your speed to lead.
So, what is your speed to lead? This is a metric that allows you to evaluate the amount of time between receiving a lead and your initial response to the lead. For example, a lead provides information to your website’s contact form and submits their information at 10 a.m. on Monday, hoping to hear from someone on time. However, they do not receive contact from you until noon on Tuesday. This means your speed to lead rate is 26 hours. In this timeframe, your lead has already moved on to the competition which responded to their inquiry in less than six hours. Improving your speed to lead time is essential.
Maximize your speed to lead rate.
To maximize your speed to lead rate, you need to look at exactly what is keeping you from providing a faster response time. Do you have your website form connected to a CRM that immediately adds new leads into a database? Does that new addition trigger a task alert? If not, this is something you need to consider to maximize your response time. In addition, you can often use your CRM to completely automate your initial response by sending out a personalized email based on certain qualifying markers on your contact form.
Use personalized messages.
With email boxes being overwhelmed every day, the time of cookie-cutter email responses is over. A standard template response email is likely to go straight into the recycle bin without ever being read. All email correspondence should include a personal touch, introduce you and your personality, and work to connect with the lead you are connecting with. With an overly saturated market, it is more important than ever that you make an emotional connection right from the start.
Follow up in a timely manner and stay connected.
The key to conversion is timing. Leaving a lead waiting to hear from you will likely force them to move on to the competition. Generally, it takes six to eight contacts to qualify and convert a lead. Following up and connecting with leads regularly is essential. This can include simple emails, educational content, and quick phone calls just to connect.
Add value to gain trust.
The mortgage industry can be overwhelming to the average buyer, and, in many cases, they put all of their trust in their loan officer when it comes to closing a deal. This is why building trust is so essential when it comes to your lead conversion rate. Offering valuable information can help build additional trust with your leads. This can include adding a mortgage calculator tool to your website, hosting an educational blog that helps explain the mortgage industry and highlights your expertise, and sending our regular newsletters that answer common questions and provides information.
Obtain and respond to customer reviews
Reviews can greatly influence a consumer’s decision to work with you. Hearing or reading about a satisfied customer’s experience also helps build your credibility and gain leads’ trust. Statistics show that 9 out of 10 consumers read customer reviews before making a purchase or working with a company, and 79% trust an online review as much as a personal recommendation from a friend or family member. Don’t be afraid to ask satisfied customers if they can leave a review and, when they do, make sure to respond to the review, even if there is negative information.
Lead conversion is necessary for success.
Maximizing your lead conversion is essential for business success. Implementing these tips into your marketing strategy can help ensure that no potential lead falls through the cracks and that you have the tools to build and nurture quality lead relationships.
The team at Good Vibe Squad understands the importance of quality lead generation to boost the potential for lead conversion. Our Unfair Advantage™ program help provides you with quality leads that help to boost your lead conversion once these methods are in place. Contact us to learn more.