LendingTree’s press release glut

LendingTree is literally assaulting the wire with press release, after press release, after press release, after press release of consumer related content. Great information, but IMHO poorly executed PR strategy.

Why not start a blog? Look at Redfin. Talk directly to your consumers, about real things, in real people language.

Here is my poor PR strategy argument:

• press releases are targeted at the press who don’t care about helping the borrower–they would rather write about the "whodunit" and "whose next" of the mortgage market
• press releases rarely carry any credibility in the Internet consumers mind even if they occasionally register in a search
• press releases are understood to be self-serving, even to consumers
• Meanwhile, a blog or even resources portion of a website give you search, direct consumer engagement, and  credibility

My fear? Consumers that need this content will never see it and LendingTree will waste money that they don’t need to waste right now.

BTW, if a consumer did find it and wanted to ask a few questions about credit score myths or top tax mistakes would they call the PR department?

Tags: lendingtree, PR, strategy, blogs, blogging, lead generation

Lead Generation goes Under the Microscope

All of the panic over mortgage implosions and market meltdowns have driven commentators to look for key drivers. This has opened the discussion on advertising and lead generation techniques:

• Paul Knag equates these lead generation practices to the fable of The Emperor’s New Clothes
• Regulating the Mortgage Ad, at LeadCritic
• The New York Times reviews the lead generation practices of Quicken Loans and LowerMyBills. As well as, highlighting new initiatives by the FTC and Attorney Generals in Ohio and New York:
  

  The Federal Trade Commission and attorneys general in states like Ohio and New York are looking into the ads as part of more comprehensive reviews of lending practices during the housing boom. In June, federal banking regulators ranked advertising as one of three areas where mortgage lenders need to be more judicious.

Is there a better way? A few think so:

• Silence Dogood at LeadCritic thinks that Redfin has a pretty good idea
• Someone may be even building a better lead generation mousetrap

Seems like the mortgage market isn’t the only market about to undergo change.

Technorati Tags:
customer experience, lead critic, lead generation, lead providers, mortgage implosion, mortgage lead buying, paul knag

Adchemy Adds Science to Lead Generation

Lead generation has long been a work of passion, creative, and intuition. However, Adchemy has an innovative approach that may provide significant results to lead buyers.

First, it is important to understand their foundation framework of lead generation. They are 100% organic search and media (banner) buys to their consumer website [ ]. From that point, their fundamental premise is that consumers have a tendency to be different based on observable attributes such as: location, time of ad response, creative response, and others. Know this information, combined with their control of the ad-serving process, they can leverage it to maximize the economics and results of their marketing efforts. This methodology and process can then be used to improve not only the submit rate, but also the quality of that inquiry. Then, as that consumer inquiry (lead) is provided to a lender, a lender will typically have a propensity to satisfy or fulfill certain leads better than others.

Wouldn’t it be interesting if you could have the lead supplier then use that data to overweight my lead buy with those higher propensity leads? Adchemy can.

If you are a data intense shop and are willing to create a complete feedback loop with a lead provider Adchemy may provide the extra lift in production you desperately need.

Technorati Tags:
Internet leads, lead generation, adchemy

ZipSearch Offers a Money Back Guarantee

Have you been frustrated in the past with Internet leads, but know you need be acquiring consumers from their favorite place to start their mortgage search–the Internet?

ZipSearch may be your answer. They are now offering a 100% lead buyer satisfaction guarantee! This is as low risk as you can get. David Schneider, CEO of ZipSearch, seem determined to provide a better, more profitable, experience for his lead buyers and is very confident in his product, obviously.

Technorati Tags:
Internet leads, lead providers, zipsearch

Big Mortgage Leads Starts a Blog

Big Mortgage Leads starts their blog off with a bang! Grabbing the essence of blogging and serving your customer with you content.

They reveal (how refreshing) some interesting empirical data from consumers using their mortgage buying Web forms:

• 44% of leads closed a loan or were in the process of closing a loan within 90 days of filling out the form
• On average, loans funded for $30,000 more than the amount that the lead entered into our form
• 76% of leads filled out only one form online when shopping for a mortgage
• 52% of the leads could not remember the name of any of the lenders who contacted them after filling out the form
• 61% of leads discussed their loan with friends / family to solicit a reference

There are definitely some conclusions to be drawn from this data. The most notable is that lenders and LOs are “turning and burning” on good customers that are talking to friends and family. Where is the trusted, brandable relationship we talk about over and over and over again.

Great job guys–keep it up!

Technorati Tags:
lead generation, lead management, bigmortgageleads, leadmarketwatch

Do Not Call Driving Shift in Advertising Market

Do Not Call is unquestionably changing the marketing and sales market. Created in 1996 and later updated in 2004 this legislation limits marketing and sales ability to engage a consumer without their explicit permission.

This reality nearly obsoleted, overnight, the traditional target list building and auto-dialing methods of prospecting for business. As a result, a spotlight has been turned on a little (comparatively speaking) niche in the multi-billion dollar advertising market–Internet lead generation. A marketing medium where consumers provide their personal information and raise their hand to be called.

This changing advertising environment is causing large advertising groups like Titan Group, Inc. a direct advertising and promotional marketing firm to enter the lead generation business. Titan cites the statistics that driving the change in strategic focus:

“In 1998, 89.6% of all leads were generated through telemarketing. Due to the “Do Not Call List” which went into effect 2005, now only 54% of all leads are generated over the phone.”

What does that mean to a market that has been traditionally heavily focus on a single industry, like mortgage?

Obviously, there is still only a limited amount of high profile online advertising landscape, which will continue driving up the cost of ad placement. Likely, it will also drive increased creativity and innovation to attract consumers’ permission to be engaged.

Then the effects begin to ripple into the sales force. Traditionally, inbound and auto-dialing call-center will need to turn to more sophisticated lead management and lead nurturing systems to drive a longer sales cycle.

Finally, lead buyers will have a broader range of choices, more supported industries, and potentially better lead suppliers. The dilemma–lead buyers will be handed a referral with more complexity and unlike anything they have received from traditional marketing.

The Internet is rapidly becoming the consumers’ preferred channel of business–it is opportunity to design the best way to capture their attention and turn them into our customers.

Technorati Tags:
lead generation, lead providers, lead management, Titan Group

Beware of Teaser Rate Lead Generation

We have always known this to be a danger, but it seems like the class-action vulture lawyers have found a vein of gold to begin mining. They seem to be starting with the deep pocketed lenders and lead providers:

NovaStar, other Bankrate clients hit with $46 million judgment (Inman News Subscription Required)

Arguably, there is a bit more a play in this class-action suit than teaser rate advertising. However, it does indicate potentially hazardous landscapes for the traditional Interest-only, 3 year ARM or Neg-Am, 720 FICO, 80% LTV advertisement.

Unfortunately, the cure is not in the advertisement. This is merely a symptom of the problem. The solution is creating a trustworthy, honest relationship with the customer. A reasonably intelligent person will understand they may not qualify for a particular program if you start by listening and then follow with education.

Here is a technique I often use. Restate the scenario and particulars of their mortgage and financial situation. Then give them an example of the scenario, which the teaser satisfies. Then tell them how and why you are giving them the right mortgage for their current financial situation and needs. I also like to add the future scenario that we are trying to get them to–financial freedom or better credit, perhaps.

Technorati Tags:
bankrate, novastar

Would you buy leads from this company?

This sort of SEO buffoonery drives me nuts: The Devilish Queen thinks Red Clay Media has great mortgage leads.

Even companies in the lead management space (not viable competitors mind you) try this nonsense too: Tricia, a nurse, a wife, living the fun fun social life thinks AIMPROMOTE is a top lead management system.

Most won’t link to them, but I think you should know them. Then if you buy from them–those who have not generated their search position by valuable, organically linked content and reputation–then buyer beware!

Free lunches in business usually end up biting the customer. Beware!

Technorati Tags: red clay media, aimpromote, lead generation, lead management, lead generation

New Lead Provider Logical Ads

Two former employees of Adteractive start-up yet another lead provider. What will their angle or differentiator be in the market?

What Generates the Best Internet Lead?

This is an “open mike” question, but let’s start with some context (also up for discussion):

Best Internet Lead = contactable + awareness of inquiry + reasonable level of interest + willing to give application information and be presented offers

Bonus variable: turns into a customer and a sale

(I isolate this variable from the equation because this has a lot to do with sales process, product mix, and customer scenario–things in this question lead generators can’t control)

What is the answer(s)?

[Disclaimer so no one gets bent out of shape--these are only idea starters not any sort of judgment of forced categorization--BTW, comments are open so I encourage all thoughts]

• great web properties (Oversee.net/Low)
• consumer brand (LendingTree)
• quality control on affiliates and lead suppliers (LeadPoint)
• call qualified (DoublePositive)
• robust data scrubbing (JuicyLeads)
• premium banner placement (LowerMyBills)
• organic and niche web properties/methodologies (ConsumerTrack and Key Leads)
• others

Technorati Tags: lead generation, Internet leads, marketing