To scale a mortgage business, you need a systematized sales process that’s organized, easy to follow, and most importantly, effective at converting leads to closed deals. One tool that many mortgage loan originators add to their sales process is a script. These can be used to streamline phone and email conversations by keeping the communication focused. Unfortunately, not all scripts are created equal. The most common reasons that mortgage lead conversion scripts don’t work are a lack of personalization, a tendency to go off the cuff, and inefficient follow-up strategies.
Key Takeaways
- For a mortgage lead conversion script to work, it needs to be used correctly.
- Some common reasons that these scripts don’t work for loan officers include a lack of personalization, a tendency to go off cuff, and inefficient follow-up strategies.
- Scripts work best when used in conjunction with other lead conversion tools like CRMs and automations.
Why Mortgage Lead Conversion Scripts Fail
Mortgage lead conversion scripts are a popular tool used by loan originators to convert potential customers into clients. However, these scripts don’t always work as intended. In fact, using them incorrectly can actually push leads and prospects away.
Here are three reasons why mortgage lead conversion scripts fail:
Lack of Personalization
One of the biggest reasons why mortgage lead conversion scripts fail is due to a lack of personalization. This can make the client feel like they are just another number and not valued as an individual. To overcome this issue, it’s important to remain conversational. Your personality is a superpower. Use it! Scripts don’t have to sound robotic.
As humans, we all have certain core desires that are universal to the human experience. Creating different scripts to address these common desires can help you better prepare for different types of clients and their most common objections.
Then, as you gather information about their specific needs, you can choose the right script to address those needs. This will show the client that you care about their unique situation and are invested in helping them find the right mortgage solution.
Going Off the Cuff
You can either have freedom of income or freedom of creativity, but you can’t have both. Direct-response-marketing-legend Dan Kennedy talks about this a lot, and it’s also something Preston has repeatedly covered in our live weekly coaching sessions with LOs from all over the country.
If you use a script differently each time, then it’s no longer a script. And not only that, but it becomes nearly impossible to track your conversions. How will you know if it’s the warm greeting or the story about your grandma that sealed the deal and closed one client versus the story of getting your mortgage license for another?
(Hint: you can’t.)
These powerful sales words have been proven to drive results, and you might consider adding them to your mortgage lead conversion scripts.
Inefficient Follow-up Strategies
The final reason why mortgage lead conversion scripts fail is due to inefficient follow-up strategies. Many loan originators rely solely on the initial conversation and don’t follow up with potential clients, or if they DO follow up with them, they aren’t fast enough. This can cause the prospect to forget about the conversation and move on to another lender.
To avoid this issue, it’s important to have a solid follow-up strategy in place and what we call “speed to lead.” Research shows that, on average, it takes 8-12 touchpoints to inspire a customer to take action. This can include sending personalized emails, making phone calls, or even sending handwritten notes. The key is to stay top-of-mind with the prospect or client and continue the conversation until a successful conversion is made.
On that note, you can automate your follow-ups using personalized email and voicemail scripts which save you time and keep the prospect or client engaged without losing the human touch from the process.
Understanding MLO’s Unique Challenges
As a mortgage loan originator, you face unique challenges that can make lead conversion difficult. Understanding these challenges is the first step in developing effective mortgage lead conversion scripts.
Diverse Clientele
One of the biggest challenges you face as a mortgage loan originator is dealing with a diverse clientele. Your clients may come from a wide range of backgrounds and have different financial needs and goals. This means that you need to be able to adapt your lead conversion scripts to meet the needs of each individual client without going overboard on generalization or personalization. Think of it like Goldilocks: we’re looking for the script that’s just right.
Complex Financial Products
Another challenge that you face is the complexity of the financial products that you offer. Mortgages can be complex, and clients may not understand all of the terms and conditions. This can make it difficult to explain the benefits of your products in a way that is easy for them to understand. Remember: the average American has a grade school level of understanding when it comes to financial literacy.
To overcome this challenge, you need to be able to simplify complex financial concepts and explain them in a way that is easy to understand for even the least financially savvy client. This may involve using visual aids or analogies to help your clients understand the benefits of your products.
Regulatory Constraints
Finally, as a mortgage loan originator, you face a number of regulatory constraints that can make it difficult to develop effective lead conversion scripts. You need to be careful to comply with all of the relevant regulations and guidelines in your area, which can limit the types of claims that you can make in your scripts.
To overcome this challenge, you need to stay up to date on legislation and continuing education (which is also a requirement of maintaining your licensure). This may involve working with legal professionals to ensure that your scripts are compliant and effective.
The Importance of Tailoring Communication in the Mortgage Industry
As a mortgage loan originator, you know that communication is key to converting leads into clients. To be successful in the mortgage industry, these are three aspects of communication to consider:
Building Trust
Building trust is essential in the mortgage industry. It is important to establish a relationship with your clients and show them that you are trustworthy and reliable. One way to do this is to be transparent and honest with your clients about what you CAN and CANNOT help them with. Explain the mortgage process in simple terms and answer any questions they may have. Make sure they understand the terms and conditions of the loan as well as what is expected of them at every step in the process.
Another way to build trust is to be responsive and timely in your communication. Respond to emails and phone calls promptly, and keep your clients informed about any changes or roadblocks that may occur. This will show them that you value their time and are committed to helping them achieve their goals.
Demonstrating Expertise
Clients want to work with someone who knows what they are doing. As a mortgage loan originator, it is important to demonstrate your expertise in the industry. This can be done by providing valuable information to your clients, such as market trends and mortgage rates. You can also demonstrate your expertise by explaining the different types of loans and grants available and helping clients choose the one that is best for their needs.
Lastly, you may consider sharing past reviews from former clients to show them that you are knowledgeable and can provide them with the guidance they need to make informed decisions.
Providing Value
Clients want to work with someone who can provide them with value. As a mortgage loan originator, it is important to provide your clients with more than just a loan. This requires putting on a “wealth advisor” hat. You can provide value by offering additional services, such as credit counseling or financial planning (or rather, point them in the right direction with a referral).
You can also provide value by being a resource for your clients. Many of the LOs in our community enjoy making social media content that is both entertaining and informative. This includes making short educational videos explaining the most common vocabulary terms related to a mortgage, sharing key statistics, and sharing information about new programs that become available.
This will show them that you value them beyond closing and funding a loan.
Alternatives to Traditional Mortgage Lead Conversion Scripts
If you’ve tried traditional mortgage lead conversion scripts and haven’t seen the results you were hoping for, don’t worry. There are alternative methods that can be just as effective. But you might also consider using them in conjunction with scripts for the greatest chance at conversion.
Adopting to New Technology
Technology is constantly evolving, and mortgage loan originators who adopt new tools and techniques can gain a competitive edge. One example is using chatbots to engage with potential customers on your website. Chatbots can answer common questions and provide personalized recommendations based on the customer’s needs. This can help build trust and increase the likelihood of conversion.
Another technology to consider is video conferencing. With the pandemic forcing many people to work from home, video conferencing has become the norm for many businesses. Mortgage loan originators can use this technology to connect with potential clients and provide personalized advice and recommendations. This can also help establish a relationship of trust and increase the likelihood of conversion.
Implementing CRM Systems
A CRM (customer relationship management) system can help you manage your leads more effectively. With a CRM system, you can track each lead’s progress through the sales funnel, automate follow-up emails and reminders, and analyze data to identify areas for improvement.
By implementing a mortgage CRM system, you can streamline your lead management process and focus on the most promising leads. This can help you convert more leads into clients and increase your overall sales.
Personalized Marketing
Personalized marketing is all about tailoring your message to the individual customer. By understanding each customer’s unique needs and preferences, you can create targeted marketing campaigns that are more likely to resonate with them.
One way to personalize your marketing is by using data analytics. By analyzing data on your leads’ behavior and preferences, you can identify patterns and trends that can inform your marketing strategy.
Another way to personalize your marketing is by creating custom content. For example, you could create a series of blog posts or videos that address common questions and concerns that your leads have. By providing valuable information and advice, you can establish yourself as a trusted authority in your field and increase the likelihood of conversion.
Mortgage Lead Conversion Scripts: The Verdict
In conclusion, mortgage lead conversion scripts can be a useful tool for mortgage loan originators to convert leads into longterm clients. However, they are not a one-size-fits-all solution and may not work for everyone.
Additionally, scripts should not be relied upon solely for lead conversion. Building a relationship with your leads and providing excellent customer service are just as important in converting leads into clients.
Finally, it is important to track your results and make adjustments to your approach as needed. Not every script will work for every lead, and it may take some trial and error to find the right approach.
Overall, while mortgage lead conversion scripts can be a useful tool, they should be used in combination with other strategies to maximize your chances of converting leads into customers.
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