The speedy and dramatic implosion of American Home Mortgage has sent many mortgage professionals into a accelerated search for a defensive strategy. Here are a few suggestions for survival to make sure you are not the next implosion or left in the collateral damage of the next big one to fold:
- Winners are Good Climbers: I still believe this advice I gave back in November 2005 as this market began to change
- Control Your Production: You have to evaluate your productions and production pipeline every day versus the market and your investors. If you don’t have a master risk plan for the organization you can be left running or using a lot of resources looking for a home for that high LTV, poor credit, stretch unit your LO brought in.
- Train or Retrain a Client Focused Salesforce: It is now a clients’ market. Treat them like they are important. Focus on each one with empathy, intensity, and respect. Enforce this dogmatically in your organization.
- Letting Past Clients Know You are Here: Time to get out real paper and your favorite pen. Drop a note to 5-10 of your past clients each week until you cover them all. Let them know you are still here and ready to answer their questions or meet their need. Start an email newsletter and let your clients know what is going on and how to evaluate what your clients are reading in the news.
- Mastering New Market Channels: Web 2.0 is in full swing and clients are using these tools. Learn what a blog, Facebook, LinkedIN, Twitter, etc. are and how to leverage them in your business.
- Build and Expand Your Internet Presence: A Web presence is much bigger than a static Web page. Learn to increase your footprint on the Web with a combination of PR, lead buying, Web 2.0, and your own lead generation.
- Learn to Buy and Work Internet Leads: This is where consumers are going to investigate their options and opportunities. You have to be a presence here. In addition, this is one of the few channels where you can match your marketing to you specific product and production strategy–critical factor in the volatile correction period. Every lead is even more valuable in this market, don’t forget a strong lead management strategy!
- Create Agility in Your Organization: Make sure you have a plan to quickly inform and have your whole organization respond and react to the market. This means a tactical plan for quickly adjusting to changing rates, products, and investors. Make rapid shift simple and understandable to your clients.
- Create an Effective Risk Management: If you don’t have someone responsible for risk management. That person should be watching and evaluating markets, pipelines, and investors daily. Then building a daily plan to respond and create opportunity
- Finally, Become the Best: This is a great time to take market share by becoming the best or innovating a better way.
Market winners are good climbers. If you look at endurance sport champions you see “good climbers,” runners and cyclist (i.e., Lance Armstrong) that know how to get very efficient and maintain form throughout sustained ascents. This translates into gain ground on leaders or extending distance on followers in the race.
Business is no different. If you know how to quickly get more efficient and maintain form (customer experience) in harder markets you will gain market share. This is what Kaleidico is doing for our clients showing them how to get more efficient and effective in Internet channels, while maintaining their form.
Remember, Winners are Good Climbers!