6 Reasons Why Loan Officer Email Marketing Works

There might be some skeptics out there that say loan officer email marketing is either a waste of time or simply not effective. These are all valid reasons and trust me, if you’re not doing your email marketing correctly, then it might be an ineffective solution from poor execution. However, the truth is that numbers don’t lie and email marketing, when done right, is a truly powerful tool to help you grow your business.

It’s frustrating to see articles predicting the “end of email marketing” or “‘the new email killer.” Cheap tricks to get peoples interest going. But what is important to remember about all these articles is that they do have a valid point. The reason social media was so exciting for businesses is that they all had lost the attention of their audience through email. Not because the email medium was “dying” but because the old school “spray-n-pray” approach to email was simply ineffective. So it’s not necessarily email that died, rather, bad email marketing died.

With that idea in mind, high quality email marketing is seeing a huge resurgence in 2013 and into 2014. That’s why I’ve put together a quick list of reasons why email marketing works for mortgage brokers.

#1 – Cost Effective & High ROI

It might surprise you to know that email, when done right, has the highest ROI for your marketing dollars. For every $1 spent, $44.25 is the average return on email marketing investment (Experian). Compare that same dollar to other channels too, it’s the best bang for your buck. For ever dollar spent, keyword ads have an ROI of $17 and banner ads are ranked at $2 ROI.

#2 – Not a Spray-n-Pray Approach

Traditional marketing approaches you might be familiar with (or still currently using) are incredibly ineffective. You know these methods too: taking out ads in phone directories, real estate guides, local community newspapers, and billboards. Or even worse: direct mail and door hangers. Direct mail campaigns get an average of 1-2% response rate! Email marketing campaigns have an average open rate of 20%-30%. I know where I’d spend my money.

#3 – Conversational and Engaging

Unlike traditional advertising methods and even social media, when you send out an email to someone, you’re not just blanketing a large crowd with a generic message. Email is directly from you to them, giving them the ability to reply to you and start up a conversation. Whether this is a simple reconnecting with an old client or a genuinely interested prospect, email provides a powerful medium to help you turn advertising into relationships.

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#4 – Metrics and Data

If you’re using a DYI tool or an email service, you’ll be able to track email campaigns in a much deeper way than you would with traditional marketing. With each email, you’ll be able to see open rates, deliverability, bounces, bad email addresses, clicks, and more. And best of all, this is tied directly to an email address, meaning that you’ll know when someone is interested in doing business.

#5 – Broad Reach Potential

And if you ever thought for a second that your clients don’t use email or that they don’t see it if you send it, you’re wrong. As it turns out, there are 3.2 billion email accounts today. Pair that with the statistics that 95% of online consumers use email and 91% of people check their email once a day, it’s safe to say that if you’re using email correctly, they’re going to see it. (ExactTarget)

#6 – Top-of-Mind

Lastly, email marketing spammers a no longer giving the rest of us honest email marketers a bad name. Spam filters and modified inboxes keep the nonsense out of sight and mind. So when you send emails that are engaging, interesting, and not self-promoting, people take notice. Even if they don’t open up every email you send, there is incredible value of email marketing outside the inbox.

Well-executed email marketing for mortgage professionals is something that is relatively new simply because over the past few years, it was easier to keep doing the same old email newsletters or nothing at all. Today’s consumers are smart. They’re keen to pick up on bad “marketing” attempts, easily tune out messages they don’t want to hear, and are heavily active online. Email is just one avenue to reach these audiences and it really does work, you just need to have the right approach to stay top-of-mind.

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