Ignoring Internet Lead Generation Could…

Fran Gatti had a good post and an even better picture on the perils of ignoring the Internet for generating sales and clients:

Fact: Over 60% of home buyers and owners go to the Internet FIRST for real estate and mortgage information. Therefore, regardless of how great your client loyalty program or referral network is there is a 60%+ chance they have already been to the Internet and your competition is calling them

Fact: Some very large (the number is always contentious–somewhere between 40% and 65%) percent on Internet inquiries never get called back and an even bigger percent  never get a second attempt.

Are you still ignoring? Then strap on your crash helmet!

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2 responses to “Ignoring Internet Lead Generation Could…

  1. Bill,

    Good to hear from you, the posts are always relevant but seem almost to be common sense to aware managers. Are there really that many purchasers of leads not following thru? In our shop our principle channel is Internet (since 96′) and I’ve rarely run into a source that borrowers claim we’re the only company to call them. Is it the model (LO’s get leads directly) that you attribute this lack of calling on? Most LO’s wouldn’t chase a lead very far, or at least would pick and choose their choices, (Cherry pick).

  2. I think you might be surprised at what a small percentage of the mortgage market is doing business this way. What is intuitive to guys like yourself, or me (who ran sales teams at Quicken Loans prior to starting Kaleidico) is really foreign to much of the market.

    As to you comment about competing on your leads–that is consistent with a recent market study we commissioned, but here are a few interesting data points:

    You are competing on most every lead, but we noticed that about 60% of the time the call backs were from the same general group of about 40-50 lenders. Not huge considering there are approximately 3650,000 licensed mortgage brokers and even the biggest guys like Quicken Loans only have about 2000 or less loan officers (the rest is processors, technology, and misc overhead).

    Many times, about 45-50% of the time we didn’t get the full 4-5 initial calls we expected from a submitted inquiry.

    Almost nobody was able to call us back in less than 45 mins and 75% of the calls were 4 hours or more after the submission.

    Another interesting fact. If we said we could not talk on the first call (but indicated interest still) 90% of the time no one followed up fro a second call.

    So, I think we found out there is a lot of learning and education that needs to happen in the market. The good news for guys like you–you get to keep cleaning your competitors’ clocks for a few more years until everyone discovers the little secret!

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