Different Is - As Different Does!

Written By: Karen Deis, Publisher

The Situation: The mortgage landscape has more competition than ever before - twice as many loan officers chasing about half the business. The types of mortgages are virtually endless. The consumer is more reluctant than ever to make a decision. It has made the "buying cycle" longer. And to top it all off, the price competition is so intense that we are cutting our commissions just to bring business in the door.

Mortgages are a "commodity" and the marketing "messages" are virtually identical.

The Dilemma: The consumer is unable to determine whether any of the products or even services that mortgage companies offer are better or worse, or any different from any other offer. Just take a look at the ads in the real estate magazines. The TV commercials. The voice mail greetings. The email signatures. They all look the same.

Why do you think the Internet is soooo popular? It's because people are looking for information. Information to educate themselves on the nuances between mortgage companies or loan programs. Consumers are trying to determine how easy it is to do business with you. Something as simple as returning a phone call within 30 minutes or answering an email may make the difference. (Did you know that only 7 out of 10 customer phone calls are ever returned, and only 3 out of 10 emails are ever answered.)

The Reality: These are 3 truths that you need to know.

1. All businesses want one thing - CUSTOMERS.
2. All customers want one thing - THE BEST DEAL.
3. Your marketing should do just one thing - ARTICULATE WHY YOU'RE THE BEST DEAL.

LOAN OFFICERS - Articulate why you are different. Here are some suggestions:

1. Change your "image" ads in your local homes magazines to "information" ads. Offer a 25-year fixed rate mortgage (instead of the 30-year fixed rates) with the headline that screams the difference between you and the competition.

"Do you know why mortgage companies and banks won't tell you about OUR 25-year fixed rate mortgage option?" "It's because they don't want you to save over $32,000 in interest expenses - that's why!" Just compare the difference: Term Loan Amount Interest Rate Payment Interest - Life of Loan 30 Year $150,000 5.75% $875.36 $164,410 25 Year $150,000 5.75% $943.66 $132,097 Yes, the monthly payment is $68.30 higher with a 25-year fixed rate, but the interest savings is $32,313 comparing both loan types. Call me and let me compare you loan amount for you too. I'm sure I can save you some money!




Check out www.MortgageCoach.com for a fantastic software program which allows you to compare not only mortgage programs, but tax benefits, and returns on investments.

2. Increase your chances of getting clients to call you - by including your phone number within your email address. Not just any phone number, but one that automatically dials your phone number thru the Internet, with a message within the body of your email that says, "CLICK HERE TO TALK TO (YOUR NAME)."
   
   Check out www.DavisTelecom.com. If you are bragging about the great customer service you provide - this is one tool that will prove to your customers they don't even have to pick up the phone to call you.



3. Want to "talk" to your customers thru the Internet? With www.AudioGenerator.com, you can record a message and "paste" it to your email (here's an example.)
   
   When they open your email, they simply click on the special LINK and they listen to you speak rather than reading an email. And, it's not only for your clients, but real estate agents, builders and title reps to update them on a file. Just think about the possibility of sending an AUDIO newsletter! If you want to be different - this is the ticket!




4. Are you offering a free report in your advertising? Use an 800-number system, such as www.800service.com. Information Now has a special offer for our subscribers. Click on the link, and then click on SIGN UP. At the bottom of the page, you'll be prompted to enter in a special code. Type Karen and it will then bring you to a page where the $297.00 activation fee has been waived for you!

   When potential clients call to listen to your pre-recorded message, you will have the option to be paged immediately; send a fax on demand; or forward the call on to one of your real estate partners. Remember, right now they are offering FREE activiation ($297 value) when you use the link listed above, to register.




5. Here's a tip on how to use the outside of an envelope effectively! I just received some junk mail from "TalkAmerica" ( a new long distance service.) One the outside of the envelope were the words "SBC/Ameritech (my local phone company) hopes you throw this envelope away!"
   
   Just think about the possibilities in your mortgage business. Who is your biggest competitor? Is it Wells Fargo? Washington Mutual? Or even a small bank or mortgage company within your area? Why not use the same type of "headline" when mailing direct marketing pieces? "Washington Mutual hopes you throw this envelope away." Your letter has to demonstrate you are different - so, be prepared to articulate WHY!
   

Suprisingly, very few mortgage companies or loan officers really make more than a token attempt to distinguish temselves from the competition. Read the ads. (I'm a Top Producer; I do all types of loans; I have the lowest rates. Call me. Visit my website. Here's my picture.) You are asking potential customers to give you their business for no justifiable, rational reason other than you are the same as anyone else.

For those that aren't aware, we have been running a "Best Email Signature Contest" during the last two issues of the magazine. The following is a great example of how to distinguish yourself from the competition, and here's the winning entry!

Do something different!