CoreLogic’s Precision Marketing indicates that 9% of customers demonstrating active purchasing patterns applied for mortgages or refinancing within a year.
This is notably higher than the industry average where the lead conversion rate is 2–3%, highlighting a substantial opportunity for mortgage providers to capture and engage potential leads.
When it comes to finding and retaining mortgage customers, lenders have been forced to cast a wide net, often with underwhelming results. The average lender dedicates significant resources to gathering potential home shoppers by buying lists from real estate websites, credit companies, and other sources — and then trying to connect with as many leads as possible.
The challenge? These methods are decidedly imprecise, not to mention costly and time-consuming. Only a minuscule percentage of people on real estate websites are actively shopping for a home.
Meanwhile, if you’re relying on leads from credit companies, potential lenders have already identified those prospects, so you’re late to the game. It’s no wonder that mortgage lead conversion rates remain at an expected 2%-3%1.
Discover Data-Driven Marketing for Sustainable Growth
Precision Marketing changes everything. By helping lenders identify home shoppers exhibiting active purchase patterns, Precision Marketing allows you to engage customers early — before they make a purchase decision. Advanced location intelligence helps determine which of your former and current customers have a greater propensity to shop for a home, consider refinancing, or take out a HELOC to cover renovations on their current property.
Knowing whether customers are actively in the market is immensely valuable because that data increases the success of all subsequent outreach. With Precision Marketing, you know when customers begin their home shopping journey and can recommend tailored mortgage products and guidance right when they need it most.
Why “Active” Is the Key Word
There’s a big difference between the number of people on real estate websites — the traditional lead sources for lenders — and the number of customers exhibiting active purchasing patterns.
The Power of Active Purchasing Patterns
Precision Marketing allows lenders to move past traditional lead sources and connect with current or former customers exhibiting active purchasing patterns. Using AI-powered location intelligence, CoreLogic’s Precision Marketing solution identifies customers that are likely in market to purchase a home.
This data gives lenders a competitive edge by allowing you to connect with active home shoppers at the beginning of the process. Make the right offer to the right person at the right time and maximize your marketing dollars by eliminating resources wasted on prospects who don’t exhibit any intention to purchase.
Precision Marketing Use Case: Uncovering a Growth Opportunity for a National Lender
Faced with a challenging housing market, one national mortgage lender wanted a more cost-effective way to reach home shoppers who were in the market. This lender has a portfolio of more than 1.5 million existing borrowers. Typically, the lender’s sales and marketing teams would try to connect with this broad audience using direct mail, online advertisements, and phone calls. That’s an expensive, broad-based strategy that yields low conversion rates.
A Better Way to Grow: Analyzing a Mortgage Lender’s Portfolio Through Precision Marketing
The 1.5 million household pool was comprised of active borrowers from the summer of 2023, and the lender asked CoreLogic to identify actual home shoppers during that period. In any historical analysis of home shoppers, CoreLogic is uniquely positioned to validate the predictive home shopper data with actual sales data.
CoreLogic analyzed the lender’s portfolio and determined that of the 1.5 million households in the borrower pool, a subset of over 78,000 customers were actively shopping for a new home. The identification and analysis of home shoppers was done over six months, which is how long it might take a customer to shift from exhibiting shopping behaviors to taking action. These customers displayed active signals like visiting multiple properties listed for sale within a set time frame.
Our nationwide property record datasets, proprietary match algorithms, and additional data points enable CoreLogic to corroborate results and minimize false positives. Precision Marketing could show that of those 78,000 active home shoppers:
- Nearly 4% sold their home and purchased a new one
- Nearly 0.5% purchased a second property
- Nearly 4% either refinanced or borrowed against the equity on their current home
- Out of all shoppers who took out a new loan, nearly 92% originated their loan with a different lender
Precision Marketing highlighted the lender’s risk of not promptly contacting these customers when they were in the real estate market and ready to buy. It also showcased the opportunity for the company’s sales and marketing teams to engage specific customers at risk of attrition, reduce their cost per lead, and dramatically increase the conversion rate of the identified home loan prospects.
Your Next Competitive Advantage
Say goodbye to general messages, expensive advertising, and cold calls. With Precision Marketing’s proprietary CRM enrichment, you can mine — from your current customer database — the households currently in the market for a new home, looking to refinance, or considering a home equity loan. The data gives your marketing team a distinct edge, ensuring you connect with the right home shoppers at the right time.
Learn to Leverage Data-Driven Marketing for Sustainable Growth
Sources
- https://www.goodvibesquad.com/blog/how-to-improve-your-mortgage-lead-conversion/#:~:text=What%20is%20the%20average%20
mortgage,number%20to%204%2D5%25 - https://www.businessofapps.com/data/zillow-statistics/#:~:text=Zillow%20had%20an%20average%20of,app%20and%20website%20in%20202
- https://www.statista.com/statistics/226144/us-existing-home-sales/
Disclaimers
- Actual results may vary by lender due to multiple factors such as mix of portfolio, market trends, data availability, etc.
- Improved algorithms to analyze active home shoppers’ behaviors will allow further refinement of the statistics around lead
capture and conversion.
The CoreLogic statements and information in this blog post may not be reproduced or used in any form without express written permission. While all the CoreLogic statements and information are believed to be accurate, CoreLogic makes no representation or warranty as to the completeness or accuracy of the statements and information and assumes no responsibility whatsoever for the information and statements or any reliance thereon. CoreLogic® is the registered trademark of CoreLogic Solutions, LLC.
