Our Blog

Let’s all agree that the mortgage and real estate industry is a tough place to be right now.  Poor market conditions, heavy government scrutiny and interference and overall uncertainty have more than a few firms uneasy right now.  It’s understandable that many are loathe to make commitments to major expenditures right now with many lines of business and sources of revenue almost impossible to forecast accurately.

Now, I hate to sound like the typical marketing/PR guy here.  It’s true that the only people screaming about how important it is to maintain marketing efforts in down periods are the people who get paid to maintain those efforts.

But, self-serving motive aside, it’s also true.  Especially in the mortgage and real estate industry.

It’s very easy in tough times to turn back to what got many of the small businesses to the level of success they’ve had previously.  In many cases, that’s getting “boots on the ground.”  The owner and his inner circle pound the pavement, visiting customers and former customers, selling with a passion they haven’t shown in years, perhaps.

And there’s nothing wrong with that.  But in many cases, the same execs are cutting their marketing efforts, saving money and expending more time.

That’s where the mistake is.  And here are a few reasons why.

You can’t be everywhere at once.       It’s true.  A sales-only approach gets your brand in front of a very limited number of prospects and customers.  If sales is a numbers game, you’re limiting your funnel from the get-go.

Marketing communications doesn’t have to be expensive.      I write about this a lot, even if it does work against my livelihood.  A good, but simple Web site, a consistent (not constant, but consistent) media relations approach and a simple quarterly e-newsletter through an inexpensive e-mail solution such as MailChimp or Constant Contact amount to an integrated, and effective, marketing strategy if you implement it well.  And the cost will shock you.  You probably spend more on your baggage fees in a year than you would on this kind of approach.

Your old contacts are moving around.            The times, they are a-changin’.  A lot of industry veterans are starting their own companies, moving to new or different firms.  There are even, believe it or not, new people coming in.  The decision-maker at your next customer may be someone you don’t yet know, no matter how long you’ve been in the industry.  And if he/she isn’t aware of you and your value proposition because you haven’t thought to call…

Your old customers, and new prospects, are seeking new partnerships.         A sales-only approach is not foolproof.  When you’re chasing the hot lead, there are plenty of old names you may forget or even write off.  But what if an old partner has landed a new position with a prospect?  What if a company you haven’t yet heard of is about to get a huge capital infusion, and seeks to grow?  You won’t know that until it’s too late, but if you have a marketing program, the odds that they’ll seek you are much better…

By relying on a direct sales-only strategy, you’re only top-of-mind with the prospect you’re in front of right now.  That’s a reach of one. Out of sight, out of mind, right?  You can’t send e-mails to every prospect, every day, and you certainly don’t get to meet with them monthly.  You’re not the only vendor or partner they hear from or speak to, and if you’re not on their minds when they make a decision, you may not be a part of that decision.

Marketing doesn’t just sell in the short term.  It also reinforces your brand message for existing customers, potential hires and prospects you didn’t know were prospects.  Business comes from many places.  Sometimes it comes from existing clients.  Sometimes, it’s a referral.  Sometimes it’s a chance meeting at a trade show.  We all like to talk about the fact that we’ve built our businesses by “word of mouth” or referral marketing.  But you only increase the chances that your partners and customers will recommend you if they hear from you, and really believe in you and your product.  Simple customer surveys, good customer support, referral incentives (where allowable, of course—let’s not drop RESPA over the side on this one) and simple brand reinforcement devices can help your customers become your salespeople.

Marketing is so easy to cut when one puts it on the spread sheet.  It’s not all science—and the parts which are science are psychology.  It’s tough to accurately measure returns.  But it’s a real necessity, especially in tough markets.  Instead of putting it on the chopping block, ask instead if there are more cost-effective ways to go to market.  Chances are, there will be, and they may even be more effective than an expensive ad campaign or mailer.