The Mortgage Press

September 2006
Realizing your customer is worth more than one sale

By Ryan Florio

Recently, a friend shared a shocking story that reminded me how shortsighted industry professionals can be when evaluating a sales opportunity. Mortgage brokers have long benefited from a robust market, and this
demand has caused representatives to expect immediate gratification from a quick sales cycle. Until recently,
mortgage sales have not depended upon superior client relationship skills; however, with speculation about growing interest rates and mounting competition, these skills may ensure a future career in a changing industry.

In this case, a seasoned mortgage broker discovered what he viewed as an ideal prospect and a potential sale
that would earn him more than $25,000 in commission, setting a new personal record. During the sales process, the client was unexpectedly called out of town due to a family emergency and did not retrieve his personal phone messages for a few days. Unfortunately, it was during this time that the broker had called to inform him that a delay in processing would require him to continue his mortgage payments. The missed message resulted in a delay and penalty for his prospect that ultimately lost him the sale.

My friend anguished over the possibility that the sale could have been saved. To him, the solution was
clear. Had the broker been more committed to his clients best interests, he would have continued trying
to communicate the information until he received confirmation. Not only would this have earned him the
anticipated commission, but he would also have formed a friendship and referral source for life.

Thankfully, the scenario painted here is not a common one, as we are not often called to this level of involvement in our customers lives. But the story does serve to illustrate the growing need to identify more closely with our clients personal needs if we are to distinguish ourselves as superior salespeople.

Research shows that less than seven percent of all home buyers return to their original broker when purchasing their second or third homes. By contrast, other industry professionals, including insurance brokers, doctors and financial advisors, oftentimes will maintain clients for generations. The basic maintenance of existing client relationships over a two-year period could easily translate into three qualified referrals per client. This ratio becomes impressive when considering that 100 existing clients could amass into more than 400 clients during this period. And a return like this is proof enough that the best way to ensure future business is to invest in your current clients.

But what if your time is at a premium? This is often the case for mortgage brokers and their clients alike when technology moves information at lightning speed and the resulting demands on our personal lives are at an all-time high. Gone are the days when sales professionals could drop in on a client for a welcomed visit and swap personal stories about kids and summer vacations. Nonetheless, if we can modify the traditional approach to building a relationship and still make a human connection, we can easily capitalize, both personally and financially.

There are some key ways to solidify relationships with new clients. First, send them a closing gift that will create a lasting impression of quality. An investment of $100 in an item to display in their home will become a timeless conversation piece and remind them of your quality service on countless social occasions. During the emotional period of closing a home, a gracious gift will create a positive anchor in their memories for years to come.

Second, send your clients a questionnaire and invite them to rate your services. Your interest in their opinion will make them feel significant to your success and provide a great opportunity to be reminded of your exceptional service. During this time, it is also critical to ask for referrals and new sources of business. This initial inquiry will
create a pattern whereby they will come to expect your request for referrals. Planting this seed of request may cause them to actively review their database in efforts to help you.

Finally, remember birthdays and special occasions with personal cards or e-mail messages, to remind them
that they remain an important part of your business experience. A two-year period of communication will provide
the consistency to ensure a lifetime of commitment. If these minimal communications cannot be managed personally, consider outsourcing the responsibility to firms that specialize in customer retention.

In an ever-changing mortgage industry, it becomes more and more essential to honor our relationships as a
significant source of new business. By taking these critical steps to marry the time-honored principles of relationships with new and modern communication technologies, mortgage brokers can ensure a solid business foundation, one worthy of an empire.

Ryan Florio is president and CEO of Cleveland-based SpecialClient.com, a Web-based company that offers automated client relationship programs as a vehicle for client retention. He may be reached at (216) 659-3382 or e-mail ryan@specialclient.com.