As published in Scotsman Guide's Residential Edition, October 2005.
Most loan-originating com-panies have plans for networking and gaining additional business through customer referrals. Many originators also have repeat customers. Yet while customers mature into other facets of the mortgage business, we don’t grow with them. Why not?
Like wholesale institutions that offer various levels for a retail-lending company to work with them, retail-loan companies need to offer extended services for their customers. Offering additional services can allow you to retain a large percentage of your existing customer base and referrals.
Studies have shown that companies that perform limited loan services at exceptional levels and that use post-contact marketing systems retain only 10 percent of their satisfied customer base. Their customers do not have a retained commitment to return to the company for service. They’ll go anywhere as long as there is trust and their loan needs are satisfied.
On the other hand, a company that offers additional services to its customers retains 70 percent of its satisfied customer base. The saying, “There is no competition against quality service,” now includes “against additional services.”
Banking institutions do this with free checking, Christmas savings plans, automobile loans and 24-hour, online-banking services. As a loan-origination business, what other services can you offer?
One additional service can be land development. You could network and pool consumer funds. The customer can invest in various land developments that can earn higher yields than what the banks offer.
Income properties are another service you could offer. This is an area that most originators focus on for customers who have purchased a primary home and who wish to invest in residential rental properties. Not all customers desire to be landlords, however, and this additional service is a typical service most lenders offer. Consider making it part of your services
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