Getting The Referral

It’s important when only 15% of business comes from existing customers

Insider

Contributing Writer

Referrals are the name of the game. Regardless of the market, everyone is looking for more business. So, are you getting referrals? According to STRATMOR data, only 15% of borrowers choose lenders because of an existing relationship. Let’s look at why some loan officers get referrals — and why some don’t.

Did you earn it?

It’s easy to think that just because you got a borrower into a home or closed a loan, you did a great job, but there’s more to it than that. Are you asking borrowers about their experience? Did you know their expectations upfront and have you met them?

What is meaningful to you may not be meaningful to your customer and vice versa. So, the easiest thing to do is ask. Ask upfront about what is important to them and what expectations they have. Then, at the end, check in with them about their experience. How could you have improved? Asking shows that you care about your customer’s experience and not just their business. And don’t just ask and move on. Learning from that customer feedback helps you fine-tune the experience for future borrowers.

Did you ask?

If you give a great experience and still find yourself wondering why you didn’t get any referrals, consider this: Did you ask? It’s easy to think that if the customer had a great time working with you, they’ll automatically tell their family and friends, but that’s not always the case. Be sure to remind them that you offer different products and can help anyone in their network in need of a lender.

Also make sure to remind them that you can serve them again if they ever move, need a home equity loan, or any other product you offer. Working with a lender involves sharing a great deal of personal information. And that information is more than just Social Security numbers and bank statements. The loan officer also learns a lot about their borrowers’ financial and personal situations and needs. It’s worth reminding them it can be much easier to work with the same person again. It can take a lot of extra time and effort to start over with someone new.

Do you keep up?

Keeping up with customers after the fact is another key to getting referrals. But, as important as staying in touch is, it’s also important that you do it correctly.

Ultimately, it’s not the borrower’s job to remember you, it’s your job to be memorable.

First, make sure you have the right to ask for their business. As a broker, you may have signed something that says you cannot go after the customer’s business again for a certain amount of time, so it’s critical to know what you legally can and can’t do.

Once you can reach out to them, it’s important to know your limit. You want to stay in front of borrowers without driving them crazy. Reach out consistently, but at a slow and steady pace. Following up too often can have the opposite effect that you’re intending.

Instead, use some of the personal insight you gained during the loan process to give you natural opportunities to check in. Did they purchase their home to start a new job? Ask them how the job is going or how they like the area. Did you assist them with a cash-out refinance to pay for their child’s college? Ask them how their child is doing or how they like the university. It’s the small things like this that make them feel special.

And please make sure these personalized messages are genuine. No one is impressed with an automatically generated birthday wish weeks before their actual birthday. For it to be impactful, show that you truly thought your outreach through.

Ultimately, it’s not the borrower’s job to remember you, it’s your job to be memorable. Be sure you are doing all you can to keep customers happy and get those all-important referrals.