Like it or not, as loan officers we're salespeople. We sell mortgages, and we sell money. There are two statistics I want to reference today that will change the way you think about the amount of time we put into selling.
Statistic #1: You might be memorable after 3 contacts
Studies show it typically takes three contacts — or three pieces of communication — before somebody remembers your name. Now we in this industry, I think, have been lucky. Those of us who have stuck around for the last five or six years have been able to create memorable relationships because so few people in this industry were doing this business right.
Statistic #2: Greater likelihood of sales occurs after 5th contact
Another study that came out said 1% of sales are made on the first contact. 2% percent of sales are made on the second contact. And, a full 5% of sales are made after the third contact. If you add that up and you only make three contacts to try to become memorable, you only have about an 8% chance of making a sale.
Now, here’s where the numbers get exciting. After the fourth contact, 12% of sales are made, and on or after the fifth contact, a full 80% of sales are made.
What's interesting to me is I see a lot of people who don't continue to make contact with prospects, referral partners and past clients. They choose not to write another handwritten card. They choose not to invite somebody out for another lunch or coffee. They don't make another phone call just because they've already received a no.
My advice is to stop what you are doing and look at two things.
Number one, how many hours per week are you actually prospecting — and I really mean prospecting — for sales? Are you putting the time into keep your name out there consistently?
Number two, how many times are you communicating with somebody trying to earn their business or build that relationship? Unfortunately, most people I see are doing one or two or three contacts. These LOs don't continue to connect with their database week after week, month after month, to reach out more than five times.
Track your time and track how many times you make contact with somebody. Remember, 80% of sales are made after five contacts. In the end, the person who continues on that path of consistent outreach the most will earn the sale.
My challenge for you is to see how many times you are willing to contact somebody before you stop if they do not give you any business, if they continue to say no. If you're not getting anything from them now, what's contacting them one or two more times going to do? The only other alternative is a yes, and I like the sound of a yes.
Go prospect and do not be afraid to make more than five phone calls, visits, emails and coffees with somebody.
Make it a great day.
Derek Egeberg is a Branch Manager with Academy Mortgage Corporation and has over a decade of broker and banker experience in Yuma, Arizona. National Mortgage Professional Magazine named Derek one of the "top 40 under 40" mortgage professionals in the country. He is an avid networker active in both BNI and Rotary clubs. Derek earned a bachelor's degree in business management from the University of Phoenix where he graduated cum laude and is actively working towards his MBA.