The Significance of Prioritizing Mortgage Customer Retention
The current economy is one where consumers have it easier than ever when they want to research new products and services, and consequently, they’re more likely to jump between them. That makes mortgage customer retention more crucial than ever before. For every customer your lending business loses, you might need three new ones to recoup the value you once had. In the mortgage industry, customer retention is uniquely challenging.
Why Customer Retention Is Challenging
Over two-thirds of marketers report that their retention marketing is average on a good day, and most know that the choices consumers have are more numerous than ever. At the same time, their attention spans are also lower than ever. Modern consumers crave and expect personalized experiences that engage them individually. Any organization looking to retain its existing clients must adhere to this.
The mortgage industry has unique obstacles when it comes to customer retention. This largely centers around the fact that most people only buy or refinance a home a few times during their adult life and may only need mortgage loans and products every four to 15 years. As a result, your lending business might go many years between engagements with your customers.
Not All Mortgage Retention Rates Are the Same
Tracking mortgage retention has to happen before you can improve it, but you also need to know that there are different rates to pay attention to. Purchase retention rates differ from refinance retention rates, and they’re much lower. This can mean you may need to make one of three decisions:
- Emphasize purchase retention rates to boost the lower number
- Focus on refinance retention rates since they’re probably higher and have more to work with
- Split your resources between both to gain as much ground as possible
It’s always wise to focus on improving customer retention rates across the board. Offer premier customer service at all points of contact, build strong relationships with your clients, and reward loyalty. Perhaps most crucial to mortgage lending is improving your services and products and staying connected with your clients over the years.
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