How to take a larger slice of the renewal pie

How to take a larger slice of the renewal pie

How to take a larger slice of the renewal pie

The real trick was maintaining my cool with the clients' last minute U-turn and holding the relationship together, hopeful that I would retain the client as a referral source. That is another story altogether, a story of Zen meditation and deep-breathing exercises. 

So I shifted gears and changed my approach.

Act 1: The letter

I began writing a letter for my clients outlining the market rates available and assuring them that there would be no costs associated with 'switching' their mortgage to another lender. To be fair the author is in a market with an average mortgage transaction of $425,000 which generates (full service) commission enough that even when there are costs, there are no costs to the client. 

This letter served as a tool with which the client could short-circuit the entire dance with their lender. Nine times out of ten it did just that, forcing the lender to cut to the floor rate. Once in a while the lender would not match the rate, or would make the process so difficult that the client would return to our office, truly grateful. Either way the letter served as a tool for myself as well. It built trust with what would be potential future clients, if not immediate clients.


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6 Comments
  • Jim Tourloukis, Advent 2015-03-23 2:11:49 PM
    Hi Dustin
    Thanks for sharing your approach. It is very interesting to actually get in front of the deal as you do and put the onus on the client to review with the lender directly. We actually do a similar thing when a potential client calls us requesting a rate. However, we do not send them a letter nor do we spend much time with them (at most 7 minutes is all they get at this point). We tell them to shop around and only come back to us once they have done so. It eliminates much of the wasted time.
    For renewals, we have had tremendous success retaining about 75% of past clients at renewal. However, we have only done this in the past year and a half (we never focused on past clients until we re-joined Verico in 2013 to use their CRM tool). The key here is the lenders which you do business. With some lenders you have no chance at all at renewal. With others, it is pretty simple to retain. You just need to know how to approach the deal depending on the lender at play.
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  • Jim Tourloukis, Advent 2015-03-23 2:13:42 PM
    oops. I meant Dustan, not Dustin. Sorry
    :)
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  • Ron Butler 2015-03-23 6:56:18 PM
    Jim makes a great point: know your adversary! Some FI are easy to take renewals from and some are totally hopeless. Several banks will go to the wall to hold on to a client and you have to know where to direct your energy.
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