AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Retention Rate Can Be Enhanced.(Domania Inc CEO Steven Kropper on the problem of retaining customers)
Steven Kropper is co-founder and CEO of Domania Inc. (www.domania.com), a Boston-based financial and marketing services software company that provides customer acquisition and retention products. Last month, Mr. Kropper wrote about the problem of retaining customers. This month, in the second of a two-part series, he offers some recommendations.
The good news is the solutions are largely within management's control. Let's focus on the two most depressing trends: average loan life in a portfolio is dropping, and customer retention is low and it is falling. A lender cannot stop borrowers from refinancing when rates go down, but they can vastly improve their retention rates and work to improve the chance that the borrower refinances with them; i.e., enters a new tranche of loans in their overall portfolio.
The truth is that lender marketing programs have been so ineffective that most lenders have a hard time getting their retention rates above their market share! A lender with an overall 5% market share of new originations is not likely to retain more than 5% of their portfolio. Moreover, given the rise in broker originated loans, most lenders are not recapturing these loans themselves; they are paying a mortgage broker to replenish their portfolio. The good news in all this is that industry retention rates are so bad there is nowhere to go but up.
Think about the current woeful-to-nonexistent state of customer management and retention programs at the big servicing companies and divisions. Despite all of the precious, hard-to-find information that lenders and servicers have about a borrower; e.g., home address, mortgage amount, income and phone number, they do not attempt to build relationships with their borrowers. The loan may be serviced, but banks call the asset a "loan" not a "customer." Since there is no relationship with the borrower, lenders have no clues, no warnings when a borrower may wish to refinance until they receive the payoff request. The payoff request comes at the ...
- Reportlinker Adds Loyalty Marketing: Attracting and Retaining Customers in...
- Press release article from: Business Wire August 11, 2009 700+ words
...Loyalty Marketing: Attracting and Retaining Customers in Difficult Times http://www...Marketing-Attracting-and-Retaining-Customers-in-Difficult-Times.html...Loyalty Marketing: Attracting and Retaining Customers in Difficult Times Euromonitor International...
- Retaining Customers in Tough Economic Times - New Allegiance White Paper.
- Press release article from: Business Wire June 10, 2009 700+ words
...available from Allegiance, Inc., a new white paper titled "Retaining Customers in Tough Economic Times" provides nine tips for succeeding...relationships. To download a free copy of the white paper "Retaining Customers in Tough Economic Times" visit http://allegiance...
- Loyalty Marketing: Attracting and Retaining Customers in Difficult Times.
- Press release article from: M2 Presswire September 18, 2009 700+ words
...Research and Markets: Loyalty Marketing: Attracting and Retaining Customers in Difficult Times(C)1994-2009 M2 COMMUNICATIONS...the addition of the "Loyalty Marketing: Attracting and Retaining Customers in Difficult Times" report to their offering. Loyalty...
- Businessinfo: Retaining Customers and Minimising Churn: Strategies for Mobile...
- Press release article from: Business Wire November 23, 2004 700+ words
...Businessinfo (http://www.businessinfo.ws/archive/BIAABBHV.htm) has announced the addition of Retaining Customers and Minimising Churn: strategies for mobile markets to its on-line store. Churn has long been an issue...
- VIEWPOINT: Retaining customers is the real challenge.
- Magazine article from: Precision Marketing January 20, 2006 700+ words
...budget realignment will only reap the desired rewards if companies take a holistic approach to the whole area of retaining customers. The strategy of merely reassuring existing customers that they have preferential rates over new ones will fall...
- Attracting and retaining customers: what smart owners offer.
- Magazine article from: Real Estate Weekly Huffner, Don Westfall, Laura March 8, 2006 700+ words
...Customized offerings that deliver exactly what customers say they want, Smart owners succeed in attracting and retaining customers by being responsive to fundamental needs--and by delivering tailored services in a timely manner that fit customers...
- Hubspan CEO to Speak on Retaining Customers and Revenue During Economic...
- Press release article from: Business Wire May 4, 2009 700+ words
...particularly with their e-commerce and procurement processes, has become a necessary part of doing business and retaining customers. The presentation will outline how business process automation with customer-related processes plays a critical...
- Research and Markets: Loyalty Marketing: Attracting and Retaining Customers in...
- Press release article from: Business Wire September 18, 2009 700+ words
...research/3a4039/loyalty_marketing) has announced the addition of the "Loyalty Marketing: Attracting and Retaining Customers in Difficult Times" report to their offering. Loyalty marketing has emerged as an integral part of the marketing...
Source: HighBeam Research, Retention Rate Can Be Enhanced.(Domania Inc CEO Steven Kropper on the...