ROI: Zillow Group’s mortgage lead program, Connect, can provide multiple sources of return
Zillow Group’s Connect program allows you to reach new clients and grow your sphere of influence. As a result, the program offers the potential for a lifetime of transactions with these new clients — and substantially enhanced ROI.
When it comes to leads, there are two sources of returns:
1. Direct returns: the traditional way of making money
Every advertiser who uses a lead generation program touts positive ROI. The basic idea is spend money, close more loans, make more money. The traditional ROI from a lead program is one of direct returns, which are very easy to track. If lenders call their leads immediately, build trust with the consumer and get them pre-approved, they are well-positioned to see a healthy ROI.
However, these direct returns might account for only 50% of the true value of an effectively structured lead program. There can actually be a lot more value to a lead beyond just the initial loan closing. Connect offers the potential for additional returns and future value. These extra sources of return, in many ways, make Connect unique.
2. Additional returns beyond the initial lead
The additional returns of a lead program stem from future deals and referrals you may receive from the new client — think lifetime value. In other words, the revenue stream and value from a lead do not have to stop when you close a loan. Instead, there is potential for more transactions over time. If you do a good job and provide great service, the client could potentially refer you to their friends, family and people that they meet.
The reason Connect is ideally placed to offer this potential for additional returns relates, in part, to the type of home shoppers who start their search online. They tend to be millennials. They tend to be first-time home buyers. And it is also likely to be their first transaction. There is the potential that they will refinance their house sometime in the future. When the time comes, they will likely buy another house. In fact, they have a lifetime of transactions in front of them. By acquiring the initial lead, performing well and becoming their trusted lender, you can be part of their journey and have the possibility of a lifetime of transactions with them.
- Leads are interested in mortgages. Consumer journey -> Looking at homes -> Get pre-qualified -> Couple questions -> Intent
Zillow Group’s mortgage leads are unique in another way. More than half of consumers coming through Connect think about financing first when shopping for homes. (For more about the implications of this, see the companion article, “
Traditionally, consumers talked to an agent first when considering buying a home. Today, consumers go online first to research homes. When they find a house that they are interested in, they can then use Zillow’s online mortgage tools to find a local lender in a matter of minutes. The consumer will answer basic, standard questions about their home search and current situation, and their answers will be sent to a local lender, along with the consumer’s contact information.
- A Zillow Group differentiator: local lenders
Most online mortgage tools connect consumers to a lender with a national call center. In contrast, Connect will try to find a lender with a local presence who can help get them pre-qualified. For most consumers, only one local lender will reach out to them, unless they request to be contacted by multiple lenders. This allows the lender who received the lead to offer the consumer personalized help with an often anxiety-producing process.
Consumers still have the option of contacting more lenders if they wish to shop for mortgage rates. Zillow has created a mortgage marketplace that encourages transparency on all levels.
There are other aspects to analyzing the potential ROI from Connect beyond just direct returns. This includes the additional returns that stem from access to a young population just beginning a lifetime of home buying. And Zillow’s tools help these consumers find local lenders best suited to meet their needs, creating a strong purchase pipeline for lenders.
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Testimonials
Jason Hostetler
LightPoint Mortgage | NMLS# 20235
“I would highly recommend Zillow’s mortgage contacts for anyone looking to grow their mortgage business. We are receiving an excellent return on our advertising investment and are doing so in a very measurable way. The representatives are also extremely helpful in fine-tuning our target markets and are easily accessible for changes and questions.”
