How tight is your bond with your customers? As a mortgage broker, your success is influenced by people’s desires to shop around for the best deals, and by customer retention.
In today’s information-rich market, consumers don’t feel obligated to do repeat business with the same mortgage broker if they can get a better deal elsewhere.
However, a lower rate isn’t everything — experience is.
When you look at statistics of how customers perceive their banking experience, the numbers are quite sobering:
● Nearly two-thirds are dissatisfied with their banking experience.
● Two-thirds are frustrated with communicating with their banks (for example, automated customer service that makes them feel like they must jump through flaming hoops in order to speak to a live person).
● Over half dislike the inconvenience of not being able to access information via their preferred communication channel.
It’s not surprising, then, that retention rate is low and customers will comparison-shop at every opportunity.
Getting into the minds of your customers can help you better serve and retain them.
Every customer has a different background and, more importantly, a different money mindset.
The old mortgage model used to be: if you have (x) in your portfolio and your assets are valued at (y), you automatically qualify for (z) amount.
But today, things are different. This model doesn’t consider that there are many ways that people think about, manage and use their money.
Money is more than just a means of exchange. It’s part of an individual’s identity and determines how much risk an individual is willing to take, whether they are more apt to follow their gut or their spreadsheet, whether they are "savers" or "spenders", and how a big purchase like a home fits into their life’s goals.
Knowing your customers' money mindset helps you give them the best experience possible. Here are four of them:
Now that you know the types of money mindsets, ask open-ended questions to help you identify each customer’s money type, including their values, needs, expectations, money behaviors and goals/desires.
This will help you avoid a one-size-fits-all mortgage solely based on income. Customers will appreciate this approach and will be more likely to do repeat business with you and give you glowing references.
Coach, Speaker, Author
James Short has over twenty years experience in assisting people achieving their goals.
He has excelled in the business and fitness arena resulting in various awards and accolades. He has developed a system that he assists business owners to work together to achieve their goals. His process turns those dreams into goals, then into reality.
In a statement provided to the financial services royal commissio...
A non-bank lender has recorded a 20 per cent increase in demand f...
The Adviser can today reveal the finalists for the highly anticip...