The cost of acquiring a new client or customer is five times that of retaining a current customer. There is no doubt that is the case. But if so, why do so many companies chase after the one they don't have and disregard the ones they do? More than coupons, discounts, and bonus points, what floats my boat is that when I have a problem, I can find someone to help me solve it. With companies going to more and more automation, (which means fewer worker bees)the simple act of calling customer service is almost guaranteed to become an exercise in frustration. To that point, voice recognition software has become sensitive enough that a raised voice or cursing can get you to a human being who may or may not have the authority to help you. (This I know having experienced it myself.)
One of the key components to a successful mortgage transaction is customer service. Anyone can sell competitive terms and rates. What is important is the follow through. Can Lender XYZ deliver on what they promise-or over promise as the case may be? I find this especially common when the borrower is shopping on the internet. As a rule I don't compete with internet lending. The old expression "what sounds too good to be true, is too good to be true" rules in this circumstance. Often with internet lending the client and or their real estate agent can't speak with the same person twice, are not kept apprised of the progress of the loan and find little or no accountability when things go wrong. Of course there are exceptions but these types of problems are not limited to internet lending alone. I have heard many complaints from real estate agents and borrowers alike that the lender that is handling the mortgage loan disappears into a black hole while the transaction is in process.
Buying a home is an emotional process. Not only are there are the logistics of orchestrating the move to deal with, but some moves are not predicated on happy experiences-perhaps a death or divorce is the motivating factor. In addition, there is a seller who needs to know the progression of things as well, so they can plan their exit from the home that is being purchased. Communication to all parties involved in the transaction is critical. This is a basic-it needs to be done.
Post closing, our customers may not have the same issues as someone who buys a computer or toaster that doesn't work, but post closing concerns do occur. It is important that our clients know there is someone they can call to assist them with any problems or questions that come up. While we don't service the loans we originate we can still get in touch with our network of lenders to find answers to question or at least a contact that can be called to solve a problem.
Our company likes to use the motto "We want to be your lender for life." We try to act on that by informing our past clients of financial opportunities such as interest rate reductions. shorter loan terms etc. as the years go by to improve their financial situation. We also try to share information about other companies that we trust that might facilitate the financial betterment of our clients. such as tax preparation, insurance companies, or financial planners. A large percentage of our business comes from past clients, be it refinance transactions, referrals or trade up situations. I am always happy to see an old friend. To be referred a new borrower from a past borrower means that we have done something right. I believe that is the highest form of compliment that I can be paid on my past work.
I also like to co-opt a slogan that was used by a department store retailer that I worked for many years ago and that motto was "Think Like A Customer." It is very easy once one has been swallowed up into a business to forget that most people don't know the particulars of the business and don't have the basis of knowledge that I do about what I do. Everyday I try to keep my eye on the fact that I possess knowledge that I have learned over many years in the real estate industry. This means I have to take the time to stop and explain what is going to happen. Even if I have bad news to impart-the truth is better than a soft shoe around it. Once the truth of the situation is acknowledged, then all concerned can move to deal with it.
It is important that whoever you choose to handle your mortgage business is someone that you trust to tell you the truth, follow up, return phone calls, and keep you in the loop of your transaction. To get less than this on the most important financial transaction you will probably ever conduct is not acceptable.
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