National Mortgage Lender Reduces Cost Per Loan by 40% using InboundProspect’s Proven Pay Per Call Exclusive Mortgage Leads Direct Mail Solution.
An industry leading national mortgage lender and servicer with over a $50 million annual marketing budget found themselves in a quandary as they struggled to maintain their monthly lead volume requirements, mortgage loan volume and Cost Per Funded Loan goals. They could no longer depend on their TV, radio and Internet lead generation strategy to get the job done as interest rates began to rise and their shotgun approach to marketing was no longer working. They needed a targeted solution that was scalable. However, they had zero confidence in traditional direct mail marketing since it had failed each time they tried it in the past do to poor response rates, which led to exorbitant Cost Per Lead and Cost Per Loan metrics. The client needed at least 500 pre-qualified Mortgage Leads per day in the form of pre-qualified inbound calls to meet their call center needs. These were all Mortgage Refinance Leads for FHA, HARP and conforming mortgage loans in over 40 states.
For many years this mortgage lender had been able to succeed using billboards, TV, radio, Internet and other “spray and pray” direct marketing approaches to generate Mortgage Leads with reasonable success. However, times had changed and these methods no longer worked. Mortgage Lead volume was inconsistent, conversion rates were dropping due to lack of pre-qualification, competition was increasing, loan volume goals were not being achieved, Cost Per Loan metrics were increasing – the mortgage lender needed a dependable and scalable Mortgage Lead generation solution fast.
InboundProspect was contacted by the mortgage lender to meet with the C-level executives and owner. InboundProspect listened to their challenges and needs and crafted a Pay Per Call direct mail Mortgage Lead generation solution that would resolve all of their existing challenges, meet their needs and achieve their Cost Per Call, Cost Per Loan and loan volume objectives. The owner and C-level executives had never heard of Pay For Performance using direct mail, so naturally they were skeptical, but since InboundProspect was taking on all of the performance and financial risk and had eliminated their response rate and Cost Per Lead concerns, they were eager to move forward with our plan.
The initial order was for 10,000 Mortgage Leads or 500 Mortgage Refinance Leads per day. InboundProspect piloted with this Mortgage Lead volume because the TV and radio lead sources were no longer monetizing and they needed to go big quickly. InboundProspect made it easy for them to take this leap of faith on the pilot because the financial and performance risk of the direct marketing rested squarely on InboundProspect’s shoulders. If we didn’t generate the Mortgage Leads, then we didn’t get paid.
In conclusion the pilot program was a tremendous success. The client’s Cost Per Loan goal was set at $2,200 for the pilot. The mortgage lenders existing Cost Per Loan was at $2,900. InboundProspect beat the Cost Per Loan goal for the pilot by delivering an $1,800 Cost Per Loan and reduced the existing Cost Per Funded Loan by nearly 40%. The client then tapped InboundProspect to roll out at 10,000 Mortgage Leads per month all originated as direct mail pre-qualified live inbound calls.