Most importantly, you need to serve your own team, because without them you will not be able to service your customers. Even in our modern digital world, word of mouth can be a powerful ally, because the message is coming from a trusted source, your partner, and usually has emotion built into it (a positive experience valuable enough to share). When you perform well for your business partners, they are more likely to refer you to co-workers, friends, or family. Obviously, the best way to incentivize your partners to give you referrals is providing great service and delivering a seamless home purchase experience to the borrower. How well lenders support their partners and nurture their businesses in tandem will be reflected in their ability to grow these relationships and gain referrals. The most effective lenders are those that provide great service to their other customers-real estate agents, title companies, insurance carriers, and investors. Of course, borrowers aren’t a lender’s only customer. When it comes to building long-lasting relationships, being there is half the battle. And when interest rates drop, you should be letting your customers know they can refinance to pay off debt or simply lower their payment. One of the best ways to differentiate yourself and gain repeat business is to build trust by being there for your customers when they need you most, and then doing what you say you’re going to do.įor example, buyers who have very little or no down payment will always remember the lender that helped them into their first-time home with a down payment assistance program. Since any mortgage lender can launch an ad campaign or generate buzz on social media, borrowers today know that there are plenty of alternatives when it comes to home financing. I’m proud to share our customer retention rate at Freedom Mortgage is far greater than the industry average-because our customers know they can count on us. Retention rates seem to drop over time as well, from 24% in the first two years to 15% after five years. In fact, according to Black Knight’s January 2021 Mortgage Monitor, the industry-wide retention rate for mortgage refinances had fallen to 18%, down from nearly 50% in 2011. But as our economy has become more global and digital, consumers are now keenly aware of their options. Traditionally, brand loyalty used to mean something in the business world. But by following a few very basic principles, any lender can earn a customer’s lifelong business.

That’s not so easy, especially when most people may only finance a home once or twice in a lifetime. The ultimate goal, however, is building customers for life. Mortgage lenders must consistently deliver value to their customers to stay competitive or else they risk losing market share. There are many ways to run an enterprise, but at the end of the day, every business must be about the customer.Įverything a lender does must be fundamentally tied to the customer’s needs, whether it’s about making the loan process more efficient and convenient or providing innovative loan products with unique terms or underwriting requirements. When you achieve great success as a lender, everyone wants to know your secret-but there really isn’t one. MBA's Diversity and Inclusion Initiative.Conferences & Education Expand subnavigation.

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