July 31, 2019

Customer Retention is Not a Market Problem, It’s Marketing (Part 2)

When business does not go according to plan, it is easy to blame the market for the stall. As discussed in my previous post, markets can get stale when there is a lack of innovation, and that staleness can impact important aspects of a successful business, especially when it comes to customer retention. 

However, customer retention does not have to be a market problem - it is more of a marketing problem that can be solved with some creative solutions and ideas.  By keeping an eye on issues in the market, it is easier to stay ahead of potential pitfalls. 

Why is customer retention so important?

Unlike buying a cup of coffee, a real estate transaction is not a daily event, and may only happen once or twice during a lifetime. To do so successfully, and to continue building business, a long-term bond is important, according to Social and Loyal

Through a special bond between a lender, real estate agent, and homebuyer, headaches can be avoided and the whole home buying process may go smoother. Social and Loyal also points out that this special bond is what helps create customer retention, and ultimately, spread the word for potential future investments. 

While Black Knight says that the share of borrowers who keep their servicer post-refinance is at a record low, causing a more competitive marketplace, this does not have to result in business concerns. Customer retention is key to success here, paired with marketing solutions that overcome this market problem.

The easiest answer is building strategies to keep customers involved, informed, and empowered. 

Where some real estate agents and lenders may try to stay ahead of the market by working harder - let it be through more aggressive marketing (there are a lot of benches to slap advertisements on, after all), or attempts to grab new customers as quickly as possible, it is important to remember the usefulness of current customers - and the potential they can bring for both future opportunities for themselves as well as new customers who they may suggest. 

This is where Homebot comes in. 

Unlike many approaches to invigorate the real estate and lending markets, which may be dependent on the market fluctuation itself, Homebot uses information to build knowledge for consumers - and knowledge is power no matter what is happening in the market it supports.

By helping keep homebuyers informed, Homebot users have a constant conversation starter on hand. While customer retention can be very dependent on the market - aggressive refinancing options, equity and investment, and market performance just to name a few, Homebot stays ahead of these factors.

A confusing, ever-changing market can quickly appear daunting, which can be detrimental to customer retention. People  want to feel in control, which can result in people making quick changes to try to feel empowered. Homebot addresses this feeling with well-organized data, which can be key for keeping customers around long-term.

By giving customers information about their most important investment - their home - the market quickly becomes less daunting and becomes more inviting. A lack of information (and misinformation) is bountiful, and with Homebot, people are able to make informed, better decisions with long-term benefits. 

By acting as thought-leaders, Homebot provides information that customers need to succeed in the real estate and lending market. Instead of flooding the market with more confusion, options, or outdated solutions, Homebot helps build customer retention by creating trust and helping customers navigate an already confusing marketplace. 

According to Forbes, “For industries that are built on the foundation of trust, there isn’t a lot of trust happening these days. In fact, consumer trust in many of these industries is at an all-time low.”

By helping homebuyers understand their home value, where to find money-making opportunities, and how to best utilize their home as an asset, Homebot allows homebuyers to have meaningful discussions with lenders and real estate agents, building significant trust and therefore customer retention in the process.

Markets may have their own share of issues, and the real estate and lending market is no exception. But with creative marketing solutions like Homebot, it is possible to stay ahead of market concerns and continue to provide value to those who matter most - the customer.

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