While optimizing the closing process is certainly low hanging fruit for improving margins, evaluating your marketing tactics and how you package your offerings may provide those additional profits you need when there’s a drop in originations. Companies that win when the going gets tough don’t use the same tactics as their competitors to gain share. They’re looking at ways to improve their service to their customer, while also considering operational efficiencies. Armed with powerful machine learning and best-in-class service, realtors and lenders should consider these marketing tactics to boast a true differentiation in an otherwise hyper-competitive market.
First, by pre-identifying properties that are expected to be easy to clear-to-close, realtors and lenders gain a competitive edge. They can specifically target these properties with more competitive offerings. For instance, lenders may offer tailored rates that are more attractive with shorter rate lock periods given these properties are likely to have fewer closing complications.
Second, the extremely competitive nature of the real estate and mortgage industry means every point of differentiation counts, as most services today are quickly commoditized. Marketing messages can be customized thereby making them more effective and painting a greater contrast with competitors.
States Title is focused on delivering the best total value for our customer. While it’s easy to understand how optimization of the closing process can provide substantial savings, it’s our belief that this is just one part of the total picture.
We estimate that transactions segmented in a pre-identification process will close more efficiently. Assuming a modest 6 day improvement in closing speed, lenders using States Title can expect a $100/loan average boost in margin just from this direct marketing approach, and realtors can expect more free time to grow their business.
Additionally, using the unique features of the States Title closing experience, marketing messages can be customized. We estimate that even a 5% improvement on a typical marketing spend of $1950 per closed transaction will yield $100 margin improvement per transaction for lenders.
Want to learn more about how predictive analytics can transform your business and boost your margins? Read our complete white paper entitled, Three Ways Data Analytics Boosts Lender Margins. Download it now!