Take the first step to retaining your customers.
With 2023 bringing more opportunities for remortgage and product transfers this year, more than ever retaining your clients and reviewing their situations is going to be invaluable to them.
Changes in 2022, including growing ESG requirements, changes to Consumer Duty, greater rules and regulations around supporting Vulnerable Customers, and the Help To Buy scheme closing, meant firms needed to be more adaptable, bringing new ideas and new opportunities.
WHAT IS CUSTOMER RETENTION?
Client retention refers to a company’s ability to turn clients into loyal users and prevent them from switching to a competitor, or using something elsewhere.
“Get closer than ever to your customers. So close that you tell them what they need before they realize it themselves.”
So why is customer retention more important than ever?
With lending forecasts down there are simple ways to ensure you can not only look after your firm but your customers as well. With small gestures such as a Birthday card, a moving day hamper or a phone call as their mortgage comes up for renewal, you are leaving a lasting impression on your customers.
These simple things are a starting point to spark a conversation. A lot can happen in 12 months – make sure their current General Insurance & Protection cover is manageable and sufficient for their needs.
If their monthly payments aren’t manageable, another idea could be to gift them back some of the commission you earnt on their mortgage, if they take out a protection policy at the same time. This could help out with some of their first bills.
It’s often much cheaper to retain existing customers than to gain new ones. And the loyal users that do use your company are more valuable and have a bigger long lasting impact as they can refer others by giving good feedback.
5 retention strategies you can try today:
1. Completion day
At an already stressful and delightful time for you customers, simply sending them a gift hamper, plant or flower, can show them your appreciation and congratulate them on their journey.
2. 3 month call
Your client has been in their house for three months, give your clients a quick call or text and ask how they are getting on. Are they managing? Did they take out Protection with their mortgage? Open a conversation about the importance of cover, should the worst happen. Revaluate their GI insurance, life status, home improvements and more. Put a time in their diaries for a call in the future.
3. Annual meeting review
This review meeting can be a casual chat or a more in depth conversation about changes they wish to make, new policy’s they wish to take out or change, etc. This is also a good change to talk about long term thoughts, such as children, marriage, etc.
4. Implement customer feedback
To start retaining customers, you need to obtain customer feedback to see how you can improve for the next customer. The most common to collect feedback is with a survey like Net Promoter Score, a customer satisfaction survey or during an annual review meeting.
5. Product renewal review
You now need to remind them that they are in the last 12 months of their current product, and that you will be in touch with them in the next 6 months to discuss their next steps. Also remind them they will receive a letter from their current lender, but not to worry because you will sort everything out for them.
Take a look at the TMA Customer Retention KIT page for top tips, ideas templates and more to help you keep in touch with your customers.
Or give our broker support team a call on 0330 303 0236 to discuss further.
