10 Ways to Measure Mortgage Lead Generation Efforts in 2024

5 Powerful Ways to Generate Mortgage Leads in 2024

For lenders or mortgage brokers, one of the most important tasks is mortgage lead generation. Looking for people who need a mortgage randomly is not efficient. So, the first question is, “How to get mortgage leads?”

Different business has different methods of searching for mortgage leads, it can be confusing at times. So, we are here to show you the 5 powerful ways to generate mortgage leads in 2024. But wait, before we start talking about different methods of generating these leads, do you know what mortgage leads are? Let’s have a quick look at mortgage leads and then continue on the topic.

What Does Mortgage Lead Mean?

In simple words, mortgage leads are simply homeowners or buyers who are looking for a proper mortgage to buy their dream home or work on their current home to make it more valuable.

Imagine someone who is dreaming about owning a nice and cozy cottage but is short on cash. One day scrolling through social media, they see your mortgage ad and knock you for details. Just like that, you got a mortgage lead. Now, you give them a convincing offer and seal the deal. These types of people are like jackpots for lenders or mortgage brokers. Both parties win in the end, where the lender makes some easy profit, and the lead’s dream comes true with the mortgage. Not just in the mortgage industry, no matter what kind of business you run, lead generation is one of the most important business aspects.

Why is it So Hard to Generate Mortgage Leads?

Generating mortgage leads is not everyone’s cup of tea. Several factors make mortgage lead generation pretty challenging and complex. Especially considering the nature of the whole industry, it is harder than lead generation for any other industry. Let’s see why:

High Competition

The mortgage market is full of lenders, brokers, and even financial institutes where everyone is looking for the same leads. As there are too many competitors, it is really hard to stand out while offering the same thing and making some profit. The leads have a lot of options in their hand, but you have to slide through all those offers to steal the lead from others.

Changing Market Conditions

Economic conditions, interest rates, and housing prices are always unpredictable and keep changing frequently. When the mortgage rates are high, or the market is going slow, there are fewer leads. In that period, digging out leads is even harder. It is pretty challenging to predict such changes in the market and adjust the marketing strategy according to that.

Complex Buyer Journey

A mortgage is one of the biggest financial commitments a person makes in his entire life, so the decision is not that easy. The decision takes time, and your lead will compare your offer with your competitors. That means, even if you get the lead early, you need to nurture them and guide them through a long way of sales funnel till they finally convert into a customer.

Strict Regulatory Environment

The mortgage industry is regulated heavily; there are many legal restrictions. You need to follow all the legal and compliance rules while advertising and the privacy of data collection is also a big factor that makes the process even more complex. Even a small wrong step can result in penalties, so you have to be really careful.

Cost of Lead Generation

Some people have mortgage leads for sale. If you want to buy mortgage leads, you need to spend a considerable amount of cash. If you don’t check the quality and purchase mortgage leads, then you will not get any convincing results from those. Because all leads are not the same. Some of them might be casually browsing through the options without any real intention of getting a mortgage. You are always at financial risk as there are no guarantees that the leads will convert.

Lead Quality and Filtering

As we said earlier, all leads in the mortgage market are not of the same value. Since there is no conversion guarantee, lead generation for mortgages becomes more complex. In many cases, the generated leads do not even qualify for a mortgage. Therefore, filtering all the low-quality leads and holding on to promising commercial mortgage leads needs time, effort, patience, and resources.

Measuring Your Lead Generation Efforts

You need to measure your efforts of generating leads to understand how well your strategy is performing and where it needs improvement. Here are some of the most important metrics and methods that you can deploy to measure your efforts:

  1. Cost Per Lead (CPL): Using this metric, you can keep tabs on how much you are spending behind every lead you generate. The formula is:
    CPL = Total Marketing Spend / Number of Generated Leads 
  2. Lead Conversion Rate: Your conversion rate indicates how many of your generated leads are actually borrowing money from you and turning it into your client. The formula is:
    Conversion Rate = (Number of leads converted / Total leads) 100
  3. Lead Quality: While the number of leads is important, the quality of the leads is also important to consider. If most of your generated leads are low-quality, then you need to change your strategy. CRM tools can help you find out the lead quality.
  4. Customer Acquisition Cost (CAC): CAC is the overall cost of acquiring a new customer, not just the lead. You need to consider the expenses of the full customer journey while calculating it. The formula is:
    CAC = Total sales and marketing cost / number of new customers
  5. Time to Conversion: It determines how long a customer takes to become your customer, starting from the top of your sales funnel to the bottom of it.
  6. Return on Investment (ROI): ROI measures whether your whole lead generation process is profitable or not. It shows how much revenue you are earning compared to how much you are spending on marketing. The formula is:
    ROI = (Revenue from leads – Cost of leads) / Cost of leads
  7. Lead Source Tracking: Since all the leads are not equally effective, you need to find out which lead sources are authentic and which are not. It will allow you to allocate your resources to the most effective lead sources, whether it is social media, SEO, Ads, or email marketing.
  8. Lifetime Value (LTV) of a Customer: Knowing the total lifetime value of a customer allows you to understand the long-term profitability of your leads and your lead generation efforts. LTV indicates the total amount of revenue you can expect to earn from a lead. The formula is:
    LTV = Average purchase value x Purchase frequency x Customer lifespan
  9. Lead Drop-off Rate: This is a valuable metric that indicates how many leads you are losing during the customer journey through your lead generation funnel. In simple terms, it shows how many leads did not convert. It is an essential metric to understand how efficient your sales funnel is and how you need to optimize it.
  10. Lead Nurturing Metrics: It shows how well you nurture your leads. There is no direct “Lead Nurturing Metrics,” but you can track email open rates, CTRs, and engagement rates during a campaign. It will show you if the follow-up is engaging the customers or if you need to optimize it more.

These are some of the most common and important metrics used in the lead generation industry to measure your efforts. You can use some or all of them and even customize them according to your needs to get a clear insight into your strategy and efficiency.

Generate More Targeted leads with LeadSpider

If you are in the lead generation industry, you know how tough it is to get your hands on quality leads. This is where LeadSpider comes into the game. It is designed to provide you with real leads across any location or business you want. So, how does LeadSpider work?

It is built to identify and enlist the right leads, the ones who can potentially become your customers based on your search and filtering. Leveraging Google My Business profiles and smart targeting, it focuses on generating specific leads that match your requirements. As a result, you will spend more time closing deals rather than chasing after dead ends.

Why Use LeadSpider?

There are tons of different lead generation tools on the internet. So, you may ask the obvious question, “Why use LeadSpider?” The answer is simple: Because LeadSpider is the best targeted lead generation tool you can find. We offer several features that set us apart from the crowd. Here are some of the key features of LeadSpider:

  1. Precise Targeting
  2. Real-Time Lead Capture
  3. Detailed Insight
  4. Download Lead Details in Excel Format
  5. Location-Based Lead Search
  6. Advanced Search Result Filtering
  7. Detailed Setup Guideline
  8. Keyword-Based Lead Search
  9. Leads are Compatible to any CRM System
  10. Affordable Price

LeadSpider specializes in B2B commercial leads. Considering all the features and the price, it is clear that LeadSpider is the unbeatable choice for the task. So, what are you waiting for? Contact us now and learn more about how LeadSpider can take your lead generation to the peak.

FAQs

Do banks pay for leads?

Yes, banks really pay for leads, especially when you are talking about mortgage leads. The market is already highly competitive, so they invest money in the lead generation process.

Why is it called a mortgage?

Mortgage is the combination of two French words that literally translates as “Dead Pledge.” The dramatic name comes from the functionality of this debt process. The property of the borrower is considered as “dead” if they fail to repay the debt. In other words, the borrower pledges their property for a loan, and if they fail to repay it, they will lose the ownership of the asset. Hence, it is called a Mortgage.

How do you prospect for mortgage leads?

Prospecting for mortgage leads includes actively searching for people who can be your potential customers as they need a mortgage. You need to craft a refined strategy and leverage the help of technologies to connect with the people who are in a home buying or refinancing journey.