Though often overlooked, it’s important that mortgage brokers have customer retention strategies in place.
According to three separate studies, acquiring new customers is 4x-10x more expensive than retaining previous customers. Even on the low end, that’s a lot of money, especially in the mortgage industry. That’s why it’s important to implement customer retention strategies for your mortgage business.
There are numerous customer retention strategies out there that work well. These are just a few worth thinking about when it’s time to bring those clients back for more business.
Gain their trust
Sounds simple enough, but people tend to be wary of commission-based professions. They worry you’re only interested in closing a deal and getting paid. Show them that’s not true. Ask them questions, offer services that meet their needs, and don’t go overboard with upselling. If a customer feels you’ve taken advantage of them, it’s virtually a guarantee that they’ll never come back.
Improve your value proposition
People love bargains, especially when they’re spending a lot of money. Investing in something as simple as coupons to hardware stores or discounts on repeat business are sure to bring some of your customers back for more. You might even consider sending a gift to a new homeowner after the close to show your appreciation—and to keep you in mind when it’s time to refinance.
Referral bonuses
Speaking of value proposition, don’t forget to reward clients who generate new leads for you. Offer a referral bonus when one of those leads signs on with you and you’ll end up with two happy customers.
Send an e-newsletter every month
The mortgage industry is confusing for many people. The reality is that most customers don’t know a fraction of the industry ins and outs. Sending a regular newsletter is not only an excellent way to stay in touch with your clients, but it’s also one of the best ways to help them stay informed.
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Offer more than mortgages
People want one-stop-shops these days. Add other products to your loan business so that when someone needs to finance something besides a home, you’ll be a resource at the ready for them. Just remember not to spread yourself too thin—just a few different offerings can drastically increase your revenue.
Don’t forget your agents
Remember that real estate agents are customers, too. Make sure to balance the needs of the buyer with the expectations of the realtor. As you probably know, many of your clients come through realtors, so it’s important to develop the same level of trust with them that you would with a buyer.
Work with reputable realtors
Unfortunately, there are a lot of subpar realtors out there. When you partner with realtors, choose them wisely. Find out all you can about them from past customers and colleagues of theirs. The last thing you want is a business partner who tarnishes your reputation by sabotaging their own. How do you know which realtors are reliable? All you have to do is take a look at your own practice. The realtors you work with should treat your customers the same way you would. Anything less is selling yourself short.
Stay in touch
Whether or not they sign up for an e-newsletter, make it a point to reach out to your customers a couple of times a year. True, it might be years before they need your services again, but your name will stick in their minds if you remain visible and available. Check in to see how they’re enjoying their new home. Send holiday cards. Contact them when a product or service comes up that could be useful for them. If you want to make an impression, take them out for lunch. Show them that you appreciate them as much as more than just a quick paycheck.
Maintain all of your customer relationships with our CRM software. Schedule a free demo today and see what a difference it makes with your customers.
What do you do to retain your customers? Share any tips or tricks you’ve learned in the comments below.