FIRST CLASS SERVICE

Obtaining new and repeat business is much easier if you provide first class service. The primary focus of first class service is to view your clients as the most important part of your business. You must strive not only to meet their needs but also to exceed their expectations.

Here are a few rules to follow to deliver first class service...

• Put helping people first on your priority list.
• Never be satisfied until your client is.
• Under promise and over deliver and absolutely keep your promise.
• Always follow up.
• Be a source of information.
• Make it easy to contact you.
• Always be patient and understanding.
• Ask for feedback and act upon it. 

TO SWEAR OR NOT TO SWEAR

Many of us have an R rated mouth in certain situations and with people whom we are comfortable. Business situations are no different for many people who use foul language on a regular basis.

However, Business Etiquette 101 tells us that it is never appropriate to swear in a professional setting, (unless it is professional wrestling.)

What comes from our mouths is and always will be a personal decision, but keep in mind that seldom if ever will someone think more of you because you swear, but they might think less!

3 IS A MAGIC NUMBER

As we plug away and try to generate new referral sources in this market sometimes a little encouragement is needed since relationship selling can be very taxing on the psyche.

As we have previously discussed, very few relationship sales are made before the fifth call and many of them can take years before a sale is made. Most referral sources out there already have lender relationships and are not prime candidates for a steady stream of new business to immediately come your way. 

On the positive side, most long term, successful Loan Officers can trace the majority of their business to meeting with three people. Yes three! Your author himself is proof of the "3 is a magic number theory". I started in the business in 1985 and two people I met that year and one I met in 1987 have started the referral train rolling and helped open doors to enough other referral sources to last an entire career.

So never underestimate the power of one customer. It could be the customer who eventually puts your business over the top!

LEARN FROM MISTAKES

Nobody likes making mistakes. But we all do it on pretty much a daily basis.

The important thing about mistakes is whether or not a person learns and grows as a result of their errors.

When I handled properly, errors can sharpen your skill sand further develop your talents. When handled poorly, mistakes are just mistakes that are likely to happen again with even worse consequences.

So remember that every mistake is either a learning opportunity or an opportunity to expand ignorance. The decision is yours.

THE QUICK FIX

The gold pro is faced daily with people who are looking for that "quick fix" or magic tip that transforms their mediocre game into that of a professional. Loan Officers on the other hand, are looking for pretty much the same thing in this market.

It is just human nature to look for the quick fix.

We all want it when it applies to our lives and our endeavors while any impartial outside observer could see how unrealistic that really is. Most of us would agree that a person can not expect to go from being an amateur backyard barbecue cook to a world class chef overnight. Just as we all know that nobody can become a great masseuse by giving an occasional neck rub.

The "quick fix" that will transform something mediocre into something spectacular does not exist in ANY endeavor worth doing Study, practice and repetition make people great at what they do and making sure you practice well enough to insure that you achieve success in your chosen endeavor is what it's all about. 

TOO MUCH OF A GOOD THING

Most golf pros work 50-70 hours per week and it becomes more like work than play when the hours are that extreme. Many of us might love to spend that much time at the gold course, just as many golf pros would gladly work indoors for the financial opportunity afforded the Loan officer.

Of course that is hypothetical proposition for the most people anyway because golf pros have to study, test and qualify to be a pro. Plus most people suck at golf which make the "playing ability" part of the testing just plain impossible.

Mortgage pros do not have such rigorous required education, training and qualifications.

This is why knowledge and expertise are such valuable assets for a Loan Officer.

THE ART OF NEGOTIATION

Many books have been written on this subject, but there are two very important rules of negotiation to know and understand.

The first rule of negotiation is that whoever wants it the most usually loses. Enough said.

The second rule is that sometimes silence is golden. This rule is especially important in that sometimes it is best to say something and then wait for a response in total silence even if the dead air lasts for an uncomfortably long period.

Silence is also golden for you, the Loan Officer, as you will be in contact with several parties on any given purchase transaction. Share with them what is essnetial and legal but do not volunteer any additional information that could be disadvantageous to you or your customers any other party to the transaction. 

As we have discussed here before...

One of the weapons mentioned in the bible was the jawbone of an ass. While it is no longer a standard weapon of choice for people in the 21st century, the jawbone of an ass can still be a vicious destroyer of Real Estate deals!

CUSTOMER SERVICE ATTITUDE

This "customer service creed" borrowed from a Denver, CO Appliance Repair Company says it all...

“Because the customer has a need, we have a job to do! Because the customer has a choice, we must be the better choice! Because the customer has urgency, we must be quick! Because the customer has high expectations, we must excel! Because the customer has influence, we have the hope for more customers!”

Notice there is nothing referring to price in their motto. Because when service is this good, price is a secondary consideration whether you are fixing appliances or originating mortgages!

MONEY

“Dishonest money dwindles away, but he who gather money little by little makes it grow.”

This is a great one for our industry because there are three great lessons in this one sentence!

First, that honest money is the only good money despite the huge amount of dishonesty that runs rampant in the mortgage business.

Secondly, to save money especially due to the volatile nature of our incomes which dictate that we save for the inevitable rainy day.

Finally, it illustrates the face that becoming wealthy is usually a process that times time and can't be rushed by things like picking the next hot stock or other forms of gambling and/or dishonesty. Any good financial planner will tell you that investing "little by little" is a proven strategy for wealth building,

Isn't it amazing how the books of Proverbs shows us how business and life's basic questions and issues have had the same answers for thousands of years?!?

PROVERBS REVISITED

A few months ago we looked at some of the wisdom found in the book of Proverbs. Quite possibly the world's first and still finest business/self help book ever published. Your responses were so overwhelmingly positive and enthusiastic that an encore is in order.

“Gold there is, and rubies in abundance, but lips that speak knowledge are a rare jewel.”

We all know that knowledge is power but sometimes we take for granted that knowledge is precious and so very fundamental to our lives. Thanks to our ever expanding world of population and technology the amount of available information is now increasing at an exponential rate.

Back in the days of Provers, however, information was scarce, primarily because electricity wasn't going to be invented for another 2900 years or so. Therefore, most of their information came from "lips that speak knowledge" which are still in high demand where you look!

COMMUNICATION (PART 2)

“Communication breakdown, it’s always the same. Having a nervous breakdown, drive me insane!”

Those Led Zeppelin boys had it right on the money when they wrote these words back in 1968. Communication breakdowns will drive you and your customers insane and it is almost always the same old mistakes.

To avoid those same old mistakes, be proactive in your communications. If something needs to be communicated, do it and do it immediately.

The proactive Loan Officers calls the parties to the transaction after the loan application, when the appraisal is received, upon loan approval and when the settlement statements are complete. If you don't do these things, you will not only receive more interruptions than you should but you will also be missing out on some great opportunities to impress those who can help you in the future. 

The most important communication, however, is that of a potential problem with the borrower's ability to qualify. This is where many Loan Officers communications totally breakdown and this is the part that will also make your customers the most upset. Whatever the issue is, it probably won't go away just because you wished for it, so you may as well be proactive. Communicate issues immediately and watch your days become more productive and your service levels soar!

COMMUNICATION

“Communication- 1: an act of transmitting 2: message 3: exchange of information or opinions 4: a means of communicating.”

Communication or more specifically lack of communication is the pitfall of many Loan Officers who are often frustrated with the difficulty of their typical transaction. The most efficient mortgage professionals are those who communicate proactively rather than reactively because it keeps them in control of their day rather than letting the day control them.

Today and tomorrow we will look at a few tips to sharpen your communications skills which will also give you back the gift of previous time.

The first suggestion is to use email whenever communicating with more than two people whenever possible. 

Secondly, and I know some of you will disagree, but whenever you need to get a specific communication to only one person, use the telephone and voice mail, not email. Unless you can type faster than you can talk, in which case the people at Guinness Book of World Records would probably be interested in meeting you!

SERVICE!!!

Customer service breeds customer retention and make no mistake we are in a service industry. While our product is a commodity, it is how we deliver the product (our service) that sets us apart from the competition. 

Striving to achieve outstanding service should be a daily ritual in order to consistently exceed the customer's expectations. Happy customers tell their friends because they want them to have the same experience. Every loan is another opportunity to generate Raving Fans which will generate referrals. 

Reading "Raving Fans" is always a great way to kick start you service mentality even if you have already read it 20 times.

There has been enough written on customer service to fill a municipal library but these 4 C's of mortgage lending customer service are the basics from which to start...

• Competence
• Caring
• Communication
• Closing

BE GENEROUS

The more love you give the more you find. There is maybe no greater truth in life!

Another spin on the same theme is what you give you get back. In fact many generous people and people of great faith will tell you that their experience is more like what you give you get back tenfold.

So just because your income is not what it once was, avoid cutting back on your generosity for it will probably mean less coming back to you in return. Give time if you can't give money but don't stop giving or you will find that you will receive much less.

INVEST IN YOURSELF

Now that business has slowed down it is time to cut back on expenses such as customer entertainment, promotions, and Media Center advertising right? WRONG!!!!!!

One of the basics of business is that when times are slow... advertise!

Businesses do this all of the time. Car manufacturers are a classic example of a business that will advertise more when times are slow in order to give their business a lift.

Currently it seems like about half of the ads on the radio are for mortgage companies. (Don't some of them make you ill?) Some of these companies may be hanging on for dear life right now, but at least they realize that getting their word out is the only way they will survive since most of them are only in the refi business.

This does not mean you need to buy a radio ad, billboards all over town or a 30 second spot on American Idol. we are all small businesses run by an individual and therefore more individualized marketing is in order rather than shot gunning your message to the whole world at a tremendous cost.

What you, as an individual, need to avoid is the temptation to spend less on your business just because you are making less. That is a recipe for disaster and any top producer will tell you so. So click on the Media Center web site and decide on a few new products and services that will have the greatest impact for your business and invest in it!

Hint: the Realtor Appreciation Campaign is both reasonably price and highly effective. 

YOU'RE AVAILABLE WHEN?

Whenever we look to new referral partners and new business relationships, the establishment of boundaries of your availability is crucial to get off on the right start. For example, if you don't work weekends, or hate getting calls at home don't say that you do just be a "yes person". Explain to the prospective referral source what services you provide and at what hours.

They will appreciate knowing the information and by carefully explaining how and you do it that way, your relationship is more likely to be successful. 

Some doctors carry pagers for real emergencies. Many Loan Officers carry pagers or cell phones for "mortgage emergencies" which only exist in the mind of the Realtor/Builder anyway. 

Communication and availability are key components of your success but without limits they can also be key components of your insanity.

ESTABLISH YOUR "USP"

"USP"or unique selling proposition is a must for successful selling whenever there is a huge amount of competition. The USP is what you can and will do differently than your competition in order to attract the prospect to you for their benefit. 

Remember these prospects will have the "WIFM" (What's in it for me?) attitude which is why a USP will set you apart. It is your USP that will get you in the door for that first appointment and it your USP (and charm) that will get you the second appointment.

Your USP could be a niche that you work well in such as government or hard to place loans. It could be a system you have of generating referrals than can be given to your referral partners. It could also be any number of services provided to the Realtor by the Media Center or anything else you can offer that your competition can not. 

So figure out what your USP is and spread the word!

CREATING REFERRALS

Our last few articles discussed dealing with new referral sources which is essential to the growth of your business. However, there is one sure fire way to generate more referrals now rather than waiting the months or years it may take to get business from a top agent. CALL YOUR PREVIOUS CUSTOMERS!!!

Here again the old 80/20 rule is in play. You will get 80% of your referrals from 20% of your customers. This is why staying in touch personally is so very important with your key referral sources and your past clients who were happy with your services and/or have referred business to you in the past.

Studies show that when you send out mail to past clients you can expect a 3-5% response rate. Hopefully that number is better for us thanks to the Media Center, but in any case it is not far off. The same study showed that making a personal phone call to the same people who received the mailing will increase your response rate by four or five times.

I know this to be true from my past experiences and you probably do too!

QUALIFY THE PROSPECT

As many of us pound the pavement, to look for new referral sources and partners, here are a few things consider...

First of all, don't assume you have to do business with a new prospect just because they are willing. Unfortunately, many of those who will be willing to switch lenders quickly are nor worth your time and effort. Many Realtors who fir this description also fit another description; hard to deal with and impossible to please. These people can make you life miserable and they will, but only if you let them. 

Most of the agents who are worth pursuing will not immediately switch to you because they are loyal to someone else anyway.

Keep in mind, however, that there are almost zero Realtors who really only have one lender.

KAIZEN

Kaizen is the Japanese term for a system of continuous improvement. A practice that reiterates the saying if you are not growing you are dying.

The old saying says, 

“The only guarantees in life are death and taxes.”

But they left out the third guarantee... change."

The rate of change in many industries has been staggering and the mortgage industry is no different. We now have access to more systems, programs, parameters, and marketing methods than ever before and the changes will continue to grow at an exponential rate.

This is why business practices such as Kaizen are so effective. Kaizen is a method of being proactive and embracing changes in order to work smarter.

Such practices should be followed by all business people and now is the perfect time for you to start with the LO Insights Kaizen contest.

Details tomorrow!