Magazine article Mortgage Banking

Contented Customers

Magazine article Mortgage Banking

Contented Customers

Article excerpt

WHY DO SERVICERS ACT LIKE IT'S THE CUSTOMERS THAT OWE THEM SOMEthing? Well, it's true--they do. It is a mortgage, and it has to be repaid. But it's that attitude--that the customers owe me, the servicer--that kills a company trying to pursue Customer retention.

You don't win over customers by pretending you are doing them a favor taking their mortgage check (the biggest one they write every month) and cashing it. After all, you are getting some interest, not to mention a little escrow money to play with. And there is not even a small thankyou note. So it's the servicing industry's failure to act like a business with true customers (who can shop elsewhere if they like, next time) that is going to be the obstacle to deeper customer retention.

By now, most industry people have heard that "good" retention rates are hovering at about 25 to 30 percent. That's not very good. But that's because most servicers have shown little discernable effort to retain "customers" instead of servicing loan balances. …

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