"Simply having a CRM in place is not enough, work needs to be done to capture and organise relevant client information at the outset of the relationship. "
In today’s highly competitive mortgage market, customer retention is crucial for growth and profitability. Studies indicate that the cost of acquiring a new customer has risen by 50% over the last five years, whereas retaining customers is significantly more cost-effective. Moreover, existing customers are 50% more likely to try new products and spend, on average, 31% more than new customers.
With technology, specifically Customer Relationship Management (CRM) systems, brokers have a valuable tool at their disposal for retaining customers and strengthening relationships over time.
Maintain regular, meaningful and proactive engagement
One of the critical challenges brokers face is staying ahead of their clients' mortgage expiry dates. A good CRM system allows brokers to efficiently track mortgage end dates and set up reminders to re-engage with clients at least six months before their fixed rates expire. This allows brokers to stay on the front foot, and implement a proactive communications strategy which ensures they reach out to their clients before the lender.
While contacting clients before their existing product rate expires is important, it’s not enough to wait until that moment to engage. Effective CRM systems also allow brokers to set up a steady flow of both personalised and more general communications throughout the client’s mortgage term. This ensures that customers receive timely advice about their next steps and by initiating contact early, brokers can help clients avoid last-minute rushes and ensure they secure the best possible deal.
Many clients appreciate regular updates, such as market insights, reminders about annual financial reviews, and information about any potential new services or products they might find beneficial. Automated email templates and pre-built communication strategies within CRM systems help brokers maintain this level of consistent interaction. After all, clients who feel cared for and valued are much more likely to stay loyal, seek future products, and recommend their services to friends, colleagues and family.
Maximise the quality of data input
However, the output from a CRM system is only as good as the quality and depth of data being input. This means that simply having a CRM in place is not enough, work needs to be done to capture and organise relevant client information at the outset of the relationship. From mortgage details and financial goals to personal preferences, these insights allow brokers to deliver personalised experiences that go beyond basic customer service. The good news though is that good brokers already do this, it’s just a matter of documenting this in the right way in the right system.
When brokers invest time in gathering detailed client data, CRM systems can help analyse and segment that information to tailor communication strategies. By leveraging email templates and workflows, brokers can ensure they maintain consistent communication with their clients without sacrificing personalisation.
This results in more relevant interactions that resonate with clients, making them more likely to view the broker as an indispensable partner in their financial journey. With the help of these automated processes, brokers can be more efficient and strategic in their outreach, making it easier to retain customers while focusing on new business opportunities.
Many firms who are looking to grow their business often find themselves seeking to balance customer acquisition with customer retention. While any intermediary business is highly unlikely to grow without any new clients, it remains vital not to dismiss the value of customer retention and how technology can help maintain a successful balance.
