How to make your marketing more effective

by 04 Apr 2017

Part II: You wrote earlier about predictive analytics and its role in producing leads. I have received credit alerts when someone in my database applies for a loan, but what is predictive analytics and how does that differ? I have not had much luck with credit alerts because typically the client has made up their mind when I follow up.

--Several loan officers asked about this concept

 

Last week we defined predictive analysis and also differentiated this tool from reactive analysis. Basically, predictive analysis is proactive versus reactive. We also spoke about some of the uses of predictive analysis across the economy. Today we will focus upon the real estate and mortgage industries. If you were a real estate agent or loan officer, what would you want to predict?

Certainly, for a real estate agent, you would want to predict whether someone is likely to purchase a home or list their home for sale. On the residential finance side, you would want to know whether someone is about to purchase a home or refinance. And perhaps even if they were likely to purchase and pay cash or finance their home. After all, approximately one out of four purchases in our country are for cash, and in some states, such as Florida, the number is closer to 50%.

Predictive analysis would make marketing much more effective. This would include mining your previous customers and your sphere. Imagine knowing which of your previous customers were more likely to move in the next year? Wouldn't you want to be the first to know and isn't that better than receiving an alert that it is already happening? Likewise, if you are mailing to a certain area, wouldn't you want your marketing efforts to be more targeted, instead of a spray-and-pray approach? Blanketing an area with postcards is very, very expensive.

--Dave Hershman

 

Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at dave@hershmangroup.com.

Poll

Should CFPB have more supervision over credit agencies?