Turn Mortgage Refinances Into Customers For Life

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mortgage refinances

With the current refinance boom, mortgage refinances have been more common than usual. Consider the effect on your business if these refinance customers stuck around. Your pipeline would grow exponentially!

Give borrowers the digital experience they’ve come to expect. When you guide them through the application process, you can foster a customer-for-life relationship.

Mortgage refinances have been more abundant in 2020. But, many lending companies fail to retain their customers who decide to get a new mortgage. Keep reading to learn ways to turn your mortgage refinance customers into customers for life! 

mortgage refinances

Remain Vigilant With Mortgage Refinances

Consumer lending competition has been heating up. So, it is necessary to remain driven and vigilant with your mortgage refinances and other customers. Some existing borrowers may be reaching the end of their introductory period. But, you can choose to keep that momentum going.

After all, borrowers are more likely to consider refinancing options when their existing mortgage deal reverts to a standard rate. It is important to know that attracting and acquiring a new customer costs five times more than retaining an existing one. So, remaining top of mind to your past borrowers is key.

Nurture Existing Customers

Research shows that 65% of a company’s revenue comes from existing customers. So, it is easier to sell to existing customers since you have a history with them. 

That also means your existing customers bring in most of your company’s future revenue. 

Many loan officers put their marketing into getting fresh customers, but it costs so much more to do so. Retention is important. Do not focus more on acquisition and leave your loyal customers disappointed. 

After all, customer retention is the foundation upon which businesses are built. So, once the loan closes, fill that gap and continue to engage with your customers.

Rethink Business Practices 

Mortgage companies need to redefine customer experiences by reimagining business models and rethinking how to deliver better services. The mortgage industry has gone through a technological transformation and digital solutions address many industry challenges. 

This shift gives a more holistic, integrated view of the customer. Also, it personalizes the customer experience and spurs innovation within services and product offerings. To remain relevant, loan officers must embrace digital solutions. 

First, identify flaws within company policies and processes. Consider offering more personalized features and benefits to keep your borrowers after mortgage refinances. Online mortgage payments are a successful feature that you can offer. Also, utilize client testimonials to improve borrower retention. After all, people love hearing other people’s experiences. 

Track Data

Several business intelligence tools can be used to segment the customer database. Also, these may identify borrowers who meet your desired retention criteria. For example, you can focus on if a borrower is approaching the end of their introductory period or if their loan performance is acceptable.

To discover trends, loan officers can use extensive data analytics. Gain a 360-degree view of your customers. This provides you with valuable insights into your specific sales. Also, what campaigns your marketing can focus on, and how to best what’s most effective. 

Remember Human Empathy

Empathy plays a vital role in retaining your customers. The primary strategy for achieving customer retention is to put yourself in the customers’ shoes and show emotional intelligence. Providing proper knowledge and showing that you care for your customer allows you to gain their trust. 

So, you need to have a deep insight into their future needs to build a constructive relationship. Fill tactical gaps and work alongside your clients. At the end of the day, focus on loyalty, satisfaction, and advocacy for the borrower. 

Practice Customer Service

Leaning into borrower communication can attract and keep empowered customers for the long haul. After all, your relationship resides in servicing. 

Before contacting you, the borrower is equipped with a lot of information from their research. They started their journey online and are often looking for the best deal, and may even talk to several lenders before settling. So, even when you have a borrower’s business, they may not be as loyal as they seem at first. 

With this in mind, the importance of customer experience is proven. Many customers trust a recommendation over an advertisement. So, enhance your customer service and start the digital process with them. Then, your borrower will be more likely to continue to do business with you, and advise their friends to do the same. 

Bottom Line

Customer retention is about building and maintaining a relationship. Mortgage refinances can be the first step of a lifelong customer. Also, digital transformation is key to any mortgage businesses’ overall survival. 

So, make sure to build trust and have your borrower feel comfortable with your services and brand. This creates a strong, repeatable, borrower-friendly experience. Then, your borrowers will stay longer past their mortgage refinance needs, and even give you client referrals.

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