Reporting is a critical component to database management. Reporting reveals what type of marketing is working for you, and answers the question, “Where is my business coming from?”

A few years back, I ran a report that revealed 23% of my previous year's business came from my Center of Influence group. A “Center of Influence” in my database is defined as Stockbrokers, Accountants, Financial Planners, and Insurance Agents. On the other hand, 34% of my business that particular year came from my Real Estate Agents. This report made me realize that I was not devoting enough time to my Center of Influence group. I spent approximately five times as many marketing hours and dollars pursuing Real Estate Agents, but they represented only 11% more of my business than the Center of Influence group. Today, with so many Loan Originators looking to extend their base of referral relationships, it is important to make this type of comparison.

On a monthly basis, I recommend running a report to analyze the percentage of leads you receive over the course of the year vs. the loans you have closed. This type of report gives you a great indication of your success in taking someone from the point of initial lead to the point of loan closing. This is a very important percentage to understand, because sometimes a small adjustment to your existing presentation can radically change your rate of success. As we head into this new market of higher interest rates, converting leads to closed loans at a high ratio will be extremely important.

Analyzing the percentage of loans opened compared to the number of loans closed is also important, since it gives you insight into the efficiency of your loan processing procedures. If you have high fallout—over 10% of open loans ending in failure to close—you need to examine your intake and processing systems for the breakdown and make improvements in those areas.

Additionally, you can calculate the percentage of loans you get from past clients, and the percentage of basis points you get on the loans from different groups in your database.

Understanding where your business comes from—knowing who referred business to you, and the frequency in which they refer—will give you great insight on how to spend your marketing time and dollars. This allows you to really capitalize on your strong referral partners and ensure quality control is in place to guarantee customer satisfaction.

Data Synchronization

Most loan professionals have been waiting for the ability to have their Loan Origination Software (LOS) communicate directly with their database management tool. The synchronization of data between these two software platforms can significantly increase efficiency in your business day.

If you are considering using a system that interfaces data between your loan origination software and your contact manager, make sure data is entered accurately the first time. An error on one side will cause automated synchronization to replicate that error. This in turn affects your reporting ability. You’ve heard of the saying, “Garbage in, garbage out.” This is a clear example of the truth of this adage. Take the time to meet with your team in advance to emphasize the importance of entering data with consistency and accuracy. Your team must be aware of what you expect your database to do for your business and have a thorough understanding of your objectives. If everyone on your team follows the same system, your database can do great things for you.

Be prepared to adjust to the new system and know that a learning curve is involved. Proper mapping of fields in the synchronization process is imperative to a smooth transition. Once you are set up and running, you will be amazed at the time saved in data entry, and the advantages of being able to view client status in real time within your contact manager.

There are a number of third party synchronization tools available on the market today. When deciding on what middle-ware to choose, take into consideration their cost for tech support. Some companies have been known to capitalize on this and charge big bucks for tech support in 15-minute increments. Truthfully, you will most likely need tech support to get you through this intricate process, even if you have an IT person on staff. But once you have a system in place, the rewards are great in terms of time management and reporting


For more FREE business and marketing tips, visit LoanToolbox!
http://www.loantoolbox.com/go/MPNNews

Article © Anywhere Communications All Rights Reserved