By Jeff Vossen | SVP of Originations & Operations
Consumer awareness is the single largest barrier for credit unions seeking to grow their mortgage programs, according to a recent survey conducted by TruHome Solutions, a credit union mortgage CUSO. Solving for awareness is not easy, and it can be expensive especially when credit unions cast a wide net in their marketing efforts.
There are more effective and less costly ways to generate awareness using outbound targeted marketing yet it is the least used marketing tactic by credit unions. Most credit unions rely on branch referrals to drive mortgage volume; however, this approach can feel a little like looking for a needle in a hay stack.
What’s most concerning about this approach is branch traffic is declining at record rates. Between 2017 and 2022, branch traffic is expected to decline by nearly 40%, according to CACI. So the single most used mortgage lead generation tactic of many credit unions is being threatened.
At TruHome Solutions, we’ve found a better way. Our better way is a more targeted approach that results in more timely connections with your members. Today, many credit unions wait for members to appear at their branch and will randomly hope those members are looking for a mortgage solution. At TruHome Solutions, we find out which of your members are in the market for a mortgage, and we start presenting them offers immediately.
Here’s how it works. Credit unions provide us a membership file, and each day we track which of your members are applying for a mortgage elsewhere. As soon as a member shows up on a report that he or she has applied elsewhere, our team goes to work. We call, email and send postcards introducing your credit union’s mortgage solution.
The outreach acknowledges we know they have applied for a mortgage elsewhere, and that we simply want to make them aware of the credit union’s offering in order to help them make the best decision for their situation. And because this communication occurs when your members are in the market for a mortgage, our success rates are higher than many of the marketing tactics being used today.
In those situations when a member still chooses another mortgage solution, the outreach positions the credit union positively with its proactive approach to looking out for the best interest of the member. It also generates awareness of the many ways a credit union can help members.
On average, TruHome converts nearly 3 percent of these mortgage leads each month, and many of the credit unions who have utilized this targeted outbound approach have seen a 40 percent annual increase in mortgage origination volume. This increase is great for credit unions for two reasons. First, it is generating new revenue for your organization. Second and most importantly, it is helping your credit union deepen its relationship with members by helping them finance the single largest purchase of a lifetime.
The best part is that with TruHome’s outbound marketing program, there’s no cost to participate. Contact me today to learn more about how targeted outbound marketing can increase your mortgage volume.