Mortgage Misery

Tough time. The Feds just dropped rates another 1/4 point and people are upset (as reflected in the stock market) that rates didn’t drop more. In today’s thought, we’ll tie a mortgage story into a lesson on competition…

Funny thing (well, not really funny to those involved) is that most companies never know why or to whom they lose business.

When designing a sales training program a few years back, I was interviewing the board of a mortgage company (when it was good to be in that business). I asked who their top competitors were.

“Too many, not worth attending too.” I was told.

Really, you asked me to interview top reps. I did and they all lost business recently, but didn’t know which company beat them out. They also didn’t know why. How do you decide strategy without knowing who buyers are choosing? Are prospects abandoning you based on rates? Turnaround time? Perhaps how ugly your reps’ ties are?

Silence.

“Okay, maybe we should start gathering that data.”

Everyone in every business should have a clear picture of their competition.

You should have their literature, rates, and ideally know how they sell (this can be done, plenty of prospects will tell you exactly what reps tell them).

It might be too late for many mortgage companies, but it’s never to late to pre-empt the marketing and sales strategies of people who live to take food off your plate.

See, analyzing ahead of time is much more fun and much less expensive than analyzing later, over dead sales.

Gather competitive data. Do it thoroughly. Do it today.

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