Why you need to focus on your existing customers

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You should have a Customer For Life approach in your business

Photo by Matheus Ferrero on Unsplash

The mortgage industry traditionally is focused on acquiring new customers.

All you need to do is take a look at the way banks and lenders advertise their latest home loan rates, and how they treat their customers.

Here is one I found amongst a prominent bank’s fine print about the interest rates advertised:

Interest rate discounts for LVR 90% or less are available only for new owner occupier borrowings and new to bank security property.

The corollary being that if you are an existing customer, these new rates being advertised are not for you.

The message being that: to get a better deal, you should refinance or complain.

Not very customer-centric is it? Despite what the bank is no doubt try to promote.

And as a mortgage broker, finding new customers is a great rush. It reminds us of the days when we were hunter-gatherers, the thrill of the chase, the high-fives and fist-bumps, plus the winning feeling when your customer says yes to going ahead.

All nice and good.

But don’t forget about your existing customers that you fought so hard to get in the first place.

Don’t be like the bank who only offers those specials to “new” customers.

There is little doubt that you do need to look for new business to grow. But marketing for new business should be one part of your business strategy. The other part is how you look after your existing customers.

If your strategy is to put your customers first, then you must really look after them.

Here are six reasons why you should have a “Customer For Life” approach in your business.

New customer acquisition costs are high
According to an article in Forbes: “it will cost you five times more to acquire a new customer than to keeping an existing customer.”

If you have just started out as a mortgage broker, you will know how difficult it was to get new customers.

And with trail income, the lifetime value of your customer is enormous.

Existing customers are more likely to trust you already
Your existing customers are more likely to listen to your advice.

If you helped them achieve their dream of home ownership or saved them money by refinancing, why wouldn’t they trust you?

If you have a review process in place for your existing customers, you are in the best place to help them. And if your advice was to change their product, they are more likely to go ahead with your recommendation.

Getting new customers is getting more difficult
We already know that getting new customers is difficult. That is why banks do what they do – by advertising for new customers.

But if you already have a customer base, and if you look after their needs, you will find that they will be more willing to recommend your services to their friends and families.

This makes the customer acquisition process easier (and less expensive) – as your new customers are being recommended to go with you.

Increase the value of your business
Having “sticky” customers is a very powerful differentiator. Unfortunately many mortgage brokers take their customers for granted. And I know that very few mortgage brokers do this well.

This can become your main point of difference.

And because it is difficult to replicate, it will make your business stronger and more profitable over time.

Be different
Nurturing and growing your relationships with your customers is a very powerful way to grow your business.

This is a fantastic point of difference and it can be relatively inexpensive to put in place.

Because it is also powerful, it will make it difficult for competitors to take customers away from you.

By nurturing relationships with your existing customers, this cements their trust in you and your business, and their referrals to their friends and families will “snowball” the size of your business.

The reverse is also true.

If you lose customers and hope to replace them with new customers, it is like pouring water into a leaky bucket. Having a customer care program in place will plug the leaks.

A powerful referral system
Having a business based on satisfied customers are the best source of referrals and recommendations.

This is what most businesses strive for: word-of-mouth marketing that is both powerful and very successful at winning new business.

The key messgage here is this: Look after your existing customers and they will refer you to new ones.

As a start-up mortgage broking business, nothing is more difficult than getting new customers. It will take time and hard work.

But you must also take time to work out how you will manage and build on the relationshps of the customers that you will gain.

The new customers you get now will become the backbone of your future business.

Don’t let all that hard work and effort be wasted.