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Why mortgage brokers need a customer retention strategy
Adrian Moloney | 10.06.2020
Winning new clients is important for any business.
But once they’ve been onboarded and are no longer ‘new’, maintaining these relationships shouldn’t be overlooked. After all, you’ve already done a huge portion of the job by taking on their mortgage case in the first place.
By providing a great service, you already start the process of being remembered; however, you’ll want to ensure you stay front of mind for when their next case arises.
And that’s where customer retention comes in.
What is customer retention?
Customer retention is a company’s ability to retain its customers over time – it’s a percentage that measures how many customers are retained by the end of a given time period.
Using a simple formula you can work out what your current retention rate is:
Customer retention rate = ((#Customers at End of Period - # Customers Acquired During Period) / # Customers at Start of Period) x 100
But why is this important?
Well, it measures how much you satisfy a client’s needs by getting them to come back to you over and over again. Adding to this, it can be far more cost-efficient and save you valuable time and effort, especially when you think about customers who will recommend your services to family and friends.
In fact, it can be up to 25 times more expensive to acquire a new customer than retain an existing one1.
Whilst it seems like a no brainer, some businesses will overlook their existing client base in favour of attracting new customers. Both are important, but by implementing some simple steps you can improve your retention strategy with little effort.
Simple steps towards implementing a customer retention strategy
1. Communication is key – Not only is it extremely important that your client experiences a great service with you to build trust, it’s also key that you nurture your relationship with them to stay front of mind when they need to place their next case. Sending out regular valuable content to demonstrate the benefits of your services through something like a newsletter can ensure you’re remembered. Depending on how big your firm is, it can also be valuable to implement a CRM system to keep track of interactions from each customer.
2. Be human – Sometimes little touches, such as wishing a client happy birthday or simply touching base to see how they’re getting on, can go a long way when it comes to building relationships. Remember to have some ‘human’ interactions with your clients to improve rapport.
3. Think of the future – Keep track of when your client’s mortgage might need renewing and get in contact in advance to arrange a conversation with them. Through being proactive, it can show you’re thinking of what your client might need and helping to make their lives as easy as possible.
4. Ask for feedback – Sometimes it can be daunting to ask a client for feedback, but how can you improve your service if you don’t understand what they think about you?
You can do this through a survey or just by candidly asking them depending on your relationship.
Acting on this feedback can encourage changes that may enable you to retain more clients in the future, and even attract new ones.
Improving your customer retention strategy doesn’t need to be strenuous.
One client could provide multiple opportunities – so what are you waiting for? Get started today.
