Dissatisfied customers will leave their mortgage company
A shift in the mortgage industry has resulted in the market now being dominated by highly competitive, non-bank lenders. Customer retention is of paramount importance and thus customer satisfaction has to be a top priority.
JD Power cites that 63% of customers are willing to leave their mortgage servicer for better customer service. Considering that three quarters of mortgage lenders who are seeing deteriorating profits, cite competition as the highest contributing factor, a more customer centric approach is therefore vital to ensure market competitiveness.
Time and time again, customer dissatisfaction is tied to poor communication between customers and mortgage lenders. There is very little interaction beyond payment reminders and when customers do need information, they find it confusing and hard to acquire.
The same JD Power study showed that 27 percent of first time buyers and 21 percent of all borrowers regret their choice of lender and one of the most common reasons for the dissatisfaction is lack of communication. According to the Consumer Financial Protection Bureau, many complaints received were related to communication issues with servicers.
What is the issue with communication?
Customers feel dissatisfied when they cannot find the information they need, or what they do receive is either too vague or not relevant to their query.
What can mortgage companies do differently?
The number one priority is to communicate regularly, while providing the customer with the information they need, when they need it and via the channel of their choice. Expecting them to call or visit a website is no longer a good enough customer experience.
Seems easier said than done of course, but mapping a customer journey is a good first step towards providing valuable and relevant information as the customer moves through the mortgage lifecycle.
Use email to fill that communication gap
Using email as a way to deliver these communication triggers, is not only cost effective, but also provides the customer with relevant information in an easy to digest format that can link back to the lenders site for more information.
Triggers can include emails such as:
- You’ve been approved. Now what?
- Your new home is 3 steps away
- Need to refinance? Here’s how…
- Your monthly mortgage statement
- Easy ways to pay your mortgage monthly
- Need answers about your mortgage? Have a look at our Q&A
- Need to make some home improvements? Apply for a home equity line of credit.
Building trust starts with effective customer communication and these automated triggers will help increase customer satisfaction and ultimately, retention.