Prepared for Jeff D. | Delivered February 27, 2020
Home Loan - Customer Acquisition Cost
To help price a new product that aids lenders and loan officers market to home buyers by researching how
lenders/loan officers spend to acquire a new client (home buyer) in the U.S.
A 2017 report stated
of loan officers said referrals are one of their top marketing tools.
of loan officers don't spend any of their budget on referrals, but 41.9% said if they had the budget they would put it towards referrals. According to this same study, purchased leads are the top item loan officers spend
on every month. This was not specific to U.S. loan officers, but was included because of pertinent information.
According to Statistica, for the years of
the U.S. mortgage spenders/loan officer industry spent $99.81 million, $139.13 million, and $180.8 million (projected) respectively on advertising for those years.
, banks increased their spending on marketing by 13% to $13 billion in 2018.
spent $57.3 million dollars between May 1 and May 31 in 2018 on TV ads. US Bank and Wells Fargo only spent $90,000 and $20,000 respectively on "
Even during the housing recession in
, mortgage companies still spent $409 million on ads in the third quarter of 2007.
Key trends in the mortgage/lending industry for marketing include the use of
use of social media, and online/content marketing
Credit unions spend between
$8 and $16
per member on advertising.
projected that credit unions spend $550 million annually on advertising.