Data Facts Lending Solutions Blog

3 Customer Retention Tactics for Mortgage Lenders

by Matt Holmes

Feb 10, 2020 9:02:00 AM

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You’ve probably heard the expression, ‘It costs around 5 times as much to acquire a new customer than to retain a current one.’ And it’s true, especially in the mortgage lending business. According to the National Association of Realtors, the average 2018 seller was in their home for 9 years. With that said, you can expect more than 10% of your clientele to be underway on their search for a new home.

Of course, as a mortgage lender, you want to be there for them in the next stage of their homebuying journey. But it won’t happen if you let them slip away. This is why you need a customer retention playbook. Here’s a few tips to get you started:

Keep the lines of communication open.

Think about how you’re staying in touch with the client throughout the life of their loan. Take a look at the marketing content you’ve provided them since closing. Perhaps you’re sending them periodic email communications or postcards. Put yourself in the client’s shoes and ask yourself if this is material you’d be willing to receive.

Sure, it might sound like marketing 101, but you need to be providing them with relevant content that they’ll look forward to opening. Position yourself as their trusted advisor and provide them with value. Most importantly, never let them forget who you are.

Mohammad Rashid, Vice President of Consumer Lending at Tavant Technologies says, “Customer retention is about building a relationship and building a relationship with a business is the same as establishing a personal connection.” In other words, you should be thinking of yourself as a friend and a mentor that your clients can trust. If you can create and nurture this connection, you’ll be the partner they can count on for their next mortgage.

Read: How to capture and retain Millennial mortgage customers

Use technology to improve the customer experience.

We’re well into the digitization revolution, and there’s undoubtedly no turning back. You’ve heard it time and again, but mortgage lenders need to adapt quickly or suffer the consequences. And some of these consequences can come in the form of low retention if you’re not proactive.

This is why you need to harness tech so that you’re constantly revitalizing the customer experience. Think about how you can deliver that experience by adding features that save your customers time. For instance, you might consider incorporating online mortgage payments into your suite of offerings, a time-saving convenience that customers will thank you for.

Offering digital verifications to your customers can also be a great way to alleviate the paper trail and the headaches that come with downloading, copying, and delivering financial information. And it can be a great place to start, as they’re easy to integrate into your existing workflows and processes.

Know when your customers are shopping.

You need to identify when your current customers are on the hunt for a new home, and the easiest way to do that is through retention triggers. Triggers are alerts that notify your lending team when a current client pulls a mortgage credit report. Because they monitor this activity daily, you can act quickly to secure their next loan- before the competition does.

Data Facts can help you retain clients with customizable retention triggers that allow you to:

  • Capture inquiry data within 24 hours
  • Monitor your entire portfolio, or specific segments
  • Choose from more than 100 precisely defined triggers

You can learn more about Data Facts trigger leads here.

Sources:

https://www.mba.org/publications/insights/archive/mba-insights-archive/2019/customer-retention-how-to-become-their-lender-for-life-x256578

http://www.progressinlending.com/TME413/TME413CustomerRetention.pdf

https://homebot.ai/blog/4-reasons-clients-forget-their-loan-officers-and-how-to-get-their-attention

 

Topics: Mortgage, Mortgage Lending, Customer Retention

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