So, let me give you some stats first off.
This is real numbers from my own insurance agency – On normal internet leads, we went from a 5% close ratio at best – That means every 100 leads we bought, we closed 5 households. We went from 5% to an 88% close ratio in 3 months, by just shifting our focus.
Here’s the deal – Referrals in any case, you get a 45-50% close ratio – But when working with a referral from a lender, you’re talking about a prospect whose main mission in life right now is to get into their home that they’ve fallen in love with! And throughout this process, who are they trusting more than anyone else, because they’re the one who is going to make or break this loan?
The lender – And, specifically, that loan officer!
So what do you think happens when it comes time in the mortgage process to get insurance. If that loan officer says… Hey, you need to go get homeowners insurance, and I know a great agent for you to get that with. What is that borrower going to do – There’s a reason we had an 88% close ratio with them, right?
They’re NOT shopping on price – They’re shopping on trust! They don’t already have a homeowners policy, and now they’re trying to find the best price – They trust that lender. They know that you are the next door that needs to be opened in order for them to get into their dream home! It is a completely different mentality than ANYONE else you’ll ever quote! The only time price comes into play is if their debt to income ratio is too tight, and then the lender will usually tell you what they need that price to be at, so that you can do what you need to do.
Are you getting this guys? I mean, imagine if you could just put a little bit of effort over the course of the next 30 days and be able to drop ALL of your lead sources – Never buy another lead again, and go from a 5% close ratio to an 88% close ratio?
How about retention?
We specifically kept track of our retention rate for referrals that had been sent to us from lenders.
No joke – Our retention rate with lender referrals over a 3 year moving average was consistently 97%.
And, they ALWAYS averaged more items than any other leads, or referrals we got, because it was the perfect time to not only lump their auto, home, and umbrella policy together, but do life and financial services as well. Plain and simple – Spending some time building your relationships with centers of influence (especially loan officers) are the way to go.