How is your note broker marketing plan performing?
Do you get more inquires off your website or more calls from your mailings?
What is your average cost per lead? Is that cost less on a professional referral or a paid ad?
For every dollar you spend what multiple can you expect to earn in return?
These questions can only be answered by…
Tracking Your Note Brokering Lead Sources
To measure the effectiveness of your marketing, it is vital to track the origin of each lead generated. This is easily accomplished by asking the note holder where they heard about your company.
Another option is to place a different extension number next to your phone number on each ad or marketing piece distributed. These extension numbers do not need to actually exist but are solely for tracking purposes.
The caller will often request the listed extension when they call in at which point you can answer:
“My name is ________ and I would be happy to assist you.”
If you’re fortunate to have help answering the phone then your receptionist can respond:
“That would be _______, our cash flow specialist. Let me transfer you.”
If the client does not offer the extension number, just ask for it and follow-up with the same response. Then keep a daily tally of the calls received and the extensions requested.
This extension method helps provide accurate data and is preferred to asking, “Where did you hear about us?” at which point they may answer, “the paper” and then you have to ask, “which paper?” and so forth.
Spend your time on relationship building and identifying needs rather than on identifying the origin of their call!
Tracking Note Marketing Costs Versus Results
Once you have a reliable lead tracking system, there are a few simple ratios to apply to your marketing efforts to see if they are effective and profitable. Here are three formulas you can use to track your overall marketing plan as well as each individual source.
1. Marketing Cost per Lead
Marketing Dollars Spent divided by Leads Generated
2. Marketing Cost per Closing
Marketing Dollars Spent divided by Transactions Closed
3. Marketing Cost per Dollars Earned
Marketing Dollars Spent divided by Fees Earned
Staying the Course
So what marketing program is the best for your note business? A good marketing plan will include a variety of the methods that have been customized to your individual strengths and weaknesses.
Your list of sources might include:
- Reverse Ad Marketing
- Professional Networking
- Social Media
- Website Inquiries
- Direct Mail Postcard
- Direct Mail Letter
- Print Ads
- Pay Per Click (PPC)
- Servicing agents
Once you start with a marketing source commit to stay the course at least 3-6 months. Do not try it for a month and give up when instant results fail to appear.
All successful ventures take dedication and commitment. Remember to continually apply the marketing formulas to weed out any non-performers that have been given a fair chance to succeed. Verify you have a system in place that enables diligent follow-up once a lead is generated.