`How To Generate Automatic Referrals And Renewals By Providing Outstanding Customer Service!` Do you make these fatal mistakes when servicing your clients? This just may be one of the most important subject that I will I touch on. Why?, you ask. Quite simple - if you don`t take excellent care of your clients, they will find someone else (your competition) who will. Before I go into a detailed discussion on how to provide outstanding customer service, let`s explore some of the "fatal" mistakes that the majority of mortgage businesses make when dealing with their customers…
Recently, a friend of mine ordered sushi for delivery from one of his favorite sushi restaurants in San Jose. When his ordered arrived, he and his soon bride-to-be began feasting on their favorite delicacy - raw fish. Much to his dismay, about halfway through his meal, he discovered a small dead bug nestled on the outside of one of the sushi roll that he was about to eat. When he discovered the bug, he became instantly nauseous, and decided to call the restaurant to let them know what had happened. Here`s how the conversation went:
Customer: "Hello, can I speak to the restaurant manager?"
Woman on the other side of the phone: "Can I ask what this is in reference to?"
Customer: "Yes, if you really must know, I found a bug in my sushi!"
Woman: "Ok, sir, please hold on."
Manager: "Hello, how can I help you?"
Customer: "I ordered sushi from you, and I just found a bug in my sushi roll."
Manager: "Really? Which sushi roll was it in?"
Customer: "The California Roll?"
Manager: "What does the bug look like?"
Customer: "It`s black and disgusting."
Manager: "I`d like to send someone by to pick it up. Then, I`d be happy to give you a new California roll, or credit you for the one with the bug in it."
Customer: "Are you out of your mind? I order in from your restaurant twice a week. I`m telling you my wife and I feel physically ill because you put a dead bug in our sushi, and you are interrogating me like a criminal. What kind of establishment do you run anyway?"
Manager: "I`m sorry sir, but that`s our policy."
Believe it or not, they actually DID send someone to pick up the sushi with the bug in it, and after giving the manager an earful about customer service, she finally gave them a full credit for the meal. But, only after she had interrogated them, made them feel like liars, and left them with a horrible impression about her restaurant. By the way, this is a true story. The sad truth is, this type of behavior towards customers seems to be the norm rather than the exception.
Think about this for a moment:
1. When was the last time you made reservations at a popular restaurant only to wait 30 minutes to an hour after the time of your reservation to be seated?
2. When was the last time you went into a clothing store, and asked one of the store clerks for help only to receive a blank stare of ignorance, or rude and inappropriate behavior?
3. When was the last time you left a voicemail message for a person or company which wasn`t returned for several days or even worse, not returned at all?
Why do you think corporate earnings have slowed for many businesses? Because they fail to place a high enough value on client retention. Most companies focus all of their time, energy, and
money on one thing…GETTING NEW CUSTOMERS IN THE DOOR! But once they get a new client, they spend almost no time, energy or money on keeping that client happy. This is a HUGE mistake! Did you know it`s five times more expensive to market to a prospect (someone who doesn`t know you) than a client (someone who knows and trusts you). Where do you think long-term profits and earnings come from - constantly having to find new customers OR maintaining your existing client base and growing it through referrals and renewals? I think the answer is pretty obvious yet most businesses I`ve observed do the exact opposite. They spend the majority of their time trying to convince srangers to do business with them, and they completely ignore their most valuable asset…
They are EXISTING clients!
Dan Sullivan, a top success coach, and founder of The Strategic Coach®, created a set of four habits salespeople and entrepreneurs need to practice in order to maintain their existing clients, and generate automatic, unsolicited referrals. Here Are Dan Sullivan`s Four Referrability Habits:
1. Show Up On Time
How often do service providers show up late, return calls late, or keep their clients waiting?This creates a feeling of anger and resentment and make your clients feel like you don`t respect or value their time. Show up to all appointments and seminars on time.
2. Do What You Say
How many salespeople and service providers promise you the world before they have your money, then fall far short of providing the service they originally promised after they have your money? This may get a company the sale once, but no one will ever repeat purchase from them since they didn`t do what they originally promised.
Also, if you say you're going to call them back...call them back!!
3. Finish What You Start
Builders and contractors are notorious for not finishing what they start. All of us have experienced entering into an agreement with a service provider who does half the work, and then stops for one reason or another and never completes the job. Make sure you finish what you start with all of your clients - that means sticking with them all the way through negotiating for a better rate and payment, and making sure they get what they deserved. Don`t make the mistake of only focusing on signing up new clients without also completing the service for your existing clients. Remember, you want your existing clients to refinance with you next time.
4. Say Please and Thank You
When was the last time a service provider said `please` and `thank you` and genuinely meant it? You must show appreciation for your clients - they are the lifeblood of your business. Make sure you treat them like gold!
Sullivan`s Four Referrability Habits sound deceptively simple, don`t they? The problem is not 10 in 100 mortgage businesses actually practice these four simple skills consistently.
I`ve added some additional habits that I feel are necessary for you to automatically generate referrals and renewals:
5. Under-Promise And Over-Deliver
Most mortgage brokers do the exact opposite of this - they promise you the world, and auomatically set you up for disappointment.
Always promise your clients less than what you think you can accomplish. This way, when your results are better than expected, they think you walk on water, and end up referring and refinancing with you.
If, on the other hand, you promise you will get your clients a fully paid private university education, you are bound to disappoint them which means they won`t be referring or renewing with you and they will tell, at least, 5 - 10 of their friends not to use your services. Don`t make this mistake - instead under-promise and over-deliver.
6. Bond With Your Clients
Most businesses don`t have any idea how to `bond` with their clients. They feel business relationships should be treated differently than personal relationships. They`re Dead Wrong! People are people, and they enjoy the emotions of love, respect, friendship, closeness, honesty, integrity, recognition, etc., regardless of whether the relationship is business or personal. Don`t try to fight this. Instead, look at all of your clients as friends, and treat them that way. Send them written correspondence once a month to keep in touch with them (I love using a monthly newsletter for this!), send them unexpected gifts (like books, audiotapes, brownies) to let them know how much you appreciate them, admit when you`re wrong instead of arguing and send apology letters or gifts, recognize them in your newsletter and let them know they`re special, and make personal calls to your best clients to see how they`re doing.
If you consistently practice the six habits over the next 90 days, you will start to see a drastic change in your business. Business will start to flow to you almost automatically without you having to push so hard for it. You will also begin to enjoy your business and your clients more, and it will start to feel more like fun
instead of work.
Also, make sure you constantly listen to your clients - what they like, what they don`t like, why they bought from you, why they refinanced with you, what other products and services you can provide for them, etc.
Your clients have all the answers if you listen to them. I`m going to share a philosophy with you that might just change your life. It certainly changed mine! It`s called the 80/20 Principle, and I GUARANTEE that by the time you`re finished reading this newsletter, you`ll understand
exactly...
How To Achieve Twice As Much With Half The Effort!
The 80/20 Principle was first discovered approximately 100 years ago by an Italian economist named Vilfredo Pareto. While he was studying income and wealth patterns, he discovered that there was a pattern of `predictable imbalance,` and that by identifying and focusing on the top 20% of our efforts, we can leverage our results in virtually any area of our lives, and vastly improve our effectiveness.
Not long ago, a major insurance company did a study on its sales force to see where the majority of its sales and profits were coming from. Low and behold... 20% Of The Sales Force Produced 80% Of the Profits! They went one step further, and analyzed the top 20% of the sales force to identify if there was a `predictable imbalance` amongst this highly productive group of people. Guess what they found? That`s right... The Top 20% Of The Top 20% Of The Sales Force Produced 80% Of The Profits!
I have personally used the `Pareto Principle` in many areas of my business and personal life, and found it to be an extremely effective tool for determining where and how I should be spending my time and efforts. I`ve boiled it down to the top 7 ways to use the 80/20 Principle in your business and personal life.
80/20 Principle #1 - Products
I have analyzed my own business and determined that about 20% of our products and services account for approximately 80% of the profits.
Here`s how I`m going to use this information...
First, I`m going to spend 80% of my time focusing on how to improve these products, and generate the maximum number of sales to my clients.
Next, I`m going to eliminate any `slow-moving` products, and create automated selling processes for the rest of the products which require a minimal amount of servicing and intervention from me and my staff. How can you apply this to your business, you ask? Start by analyzing which type of loan product(s)and/ or service(s) account for 80% of your profits. My guess is that it will be only one or two at most. I have found that the most highly successful salespeople focus on one or two products that they are superior at marketing and selling while most `average` salespeople try to be all things to all people. They figure that it`s better to sell `something,` but they fail to realize that it`s much easier and less time consuming to become the expert in a specific niche. Many salespeople end up spending large amounts of time constantly researching products or programs that they are not familiar with rather than focusing on creating effective marketing and efficient systems for the programs that they already know. All because they cannot say no. They cannot turn away business. So, they give up valuable time. Time in which they could produce several new clients in a specialized niche that they are already an expert in. Which leads to the second principle.
80/20 Principle #2 - Clients
I recently analyzed my customer list, and found that 80% of my sales and profits were coming from about 20% of my clients. Conversely, I also found that about 80% of my headaches were coming from the bottom 20% of my clients.
Here`s what I`m going to do with this information...
First, I`m going to do whatever it takes (within reason) to keep my top 20% happy. I plan to offer this group of people special bonuses, private sales, extra levels of support, and anything else I can think of to let these people know how much we appreciate them. On the other hand, I have instructed my staff not to tolerate the lower 20% who produce 80% of the headaches in our office. These people will be given warnings when they are abusive or impossible to please, and if that doesn`t correct the problem...We Will Fire Them! At first glance, this may sound harsh. But, after being in business for close to 17 years, I have found that it is far more profitable and enjoyable to work with people who appreciate what you do for them, and are willing to pay a fair fee for the help you give them. I have also found that the universe works like a vacuum, and every bad client you fire is usually replaced by a better client who appreciates what you do for them.
Try this in your own business. Determine who the top 20% of your clients are, and treat them like gold! Then, figure out which 20% are causing you the most problems, and taking up an inordinate amount of your time. Start by giving these people an opportunity to `redeem` themselves. If that doesn`t work, and they continue to make your life miserable...Get Rid Of Them!
80/20 Principle #3 - Sales And Marketing Methods
There are dozens of different marketing methods you could use to generate new clients for your business.
1. Direct Mail
2. Telemarketing
3. Advertising
4. Joint Ventures
5. Public Seminars
6. In-Home Workshops
7. One-On-One Sales Presentations
8. Referrals
Here`s the problem: There are so many exciting ways to market your business that many of you try to do them all! Remember the goal of any business should be focus and simplicity. All marketing
methods will NOT work equally well for you.
So, here`s my advice...
Go back and analyze the results of all your marketing efforts. I think you`ll discover that one or two methods will account for about 80% of
your sales. The bottom line is - test to find out which marketing/selling methods work best for you, then spend 80% of your time focusing on them.
80/20 Principle #4 - Time
Without a doubt, analyzing how you spend your time will have the greatest overall impact on your business and your personal life. Start by tracking how you spend every hour of your day for, at least, one full week. I think you`ll make an amazing discovery...80% Of Your Results Come From 20% (or less) Of The Time You Spend Working!
If you`re like most entrepreneurs and salespeople, much of your time is taken up doing administrative tasks (i.e. filing, bookkeeping), talking on the telephone (non-sales related conversations), reading (newspapers, trade publications), etc. Unfortunately, none of these activities produce any revenue. Then, we spend about 20% of our work week (1 full work day)on "revenue-generating activities" like creating ads, sales letters, and telephone scripts, doing seminars, meeting with prospects and clients, and setting up joint ventures. Guess what? That`s where all of your money comes from. But you`re only spending 20% of your time on these activities. Therein, lies the reason why most salespeople and entrepreneurs hit an `income ceiling` finding that no matter how many extra hours they work, they don`t make any more money.
Here`s my recommendation...
Start by analyzing how you`re currently spending your time. Once you`ve defined the `non-revenue generating activities` that you`re spending 80% of your time on... Delegate, Eliminate, Or Outsource These Tasks! Top success coach, Jeff Smith, found that in most cases you can easily double your net income by eliminating half the activities you currently spend your productive working hours on, and instead replace them with "Revenue Generating Activities."
Image:
Other pages:
This is the text-only version of this page. Click here to see this page with graphics.
Edit this page |
Manage website
Make Your Own Website: 2-Minute-Website.com