An economic downturn serves as a spotlight for innovators who can stay on top of market conditions and make the pivot. The way we do business eventually changes because of some of these adaptations. As an example, take the pandemic lockdown in 2020 that resulted in disaster at urban restaurants. Unfortunately, some businesses had to close their doors permanently. There had been a significant decline in revenue. Nevertheless, others quickly began offering take-away meals, take-and-bake cocktails, and takeout options.
Taking a look at how the mortgage industry defines “takeout” might be helpful. As a result of past economic downturns, lenders and service providers shifted their focus to marketing and sales. The same holds true as we head into 2023. Nevertheless, this time around, the mortgage industry will ramp up its marketing and sales efforts differently.
For most lenders and service providers, rethinking their traditional marketing strategy will be the first step. A restaurant that is suddenly swamped beyond its normal dinner service levels can be compared to the historic rush of origination volumes in 2020–2021-dirty dishes are left piled in sinks, and kitchen floors aren’t always mopped because the main priority is serving the influx of visitors. In fact, many mortgage companies complained about production and throughput challenges during the heyday of refinancing. Whenever there are too many orders to fill, what is the point of scrutinizing a marketing plan?
Mortgage firms are now realizing that the strategies that worked in 2019 may not work in the future as they revisit their marketing plans. It’s time for an update. Those who continued to update their marketing did notice a dramatic change in that seemingly short period.
There was a decline in ad sales, even on platforms like Meta (Facebook) and Instagram. Even at the B2B level, TikTok has become a legitimate promotional platform. A genuine human connection and authenticity were the most important characteristics of mortgage marketing. Logo bombardment and repetition don’t sell anymore. No matter what the product or service is, what matters is content and information of value.