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Add Value or Prepare to Buy Down Rate and Lose Income

“This is the max buy down. Can we make that work for the client?”

A BDM we speak to regularly has made this statement to the same broker twice in the last 24 hours. He fully expects to be asked again several more times by the same broker before the week is out. This broker is a poor producer for this BDM and lender and in fact, his regions top producer almost never asks for a max buy down or even a buy down at all. Ever. Why?

First, we know this: Customers don’t buy on price. They default to price when value and a quality experience are absent.

That’s on us, as mortgage professionals.

You need to be expertly prepared for a clients needs. You need to understand their current situation, their short term goals and their long term outlook and be able to confidently and fluently articulate it back to the client as well as a strong solution to meet those needs. If you do this, you will never again feel compelled to compete on “price” (rate).

“Mortgage Magnates early research has shown that only 20% of the mortgage professionals clients we surveyed, are successful in achieving their expectations and creating value that makes them not care about the rate they receive. Terrifyingly, only one in four of these mortgage professionals get agreement from their clients to meet again, a second time. For this industry to continue to and better compete with big bank advertising and reach, we need to improve this ten-fold” —Chris Baker, President and CEO, Mortgage Magnates

The best mortgage professionals are meticulous about preparation because they understand that client expectations have completely changed in recent years. The opportunity to advance their broker-client relationship is dependent on meeting clients exactly where they are. Clients are overwhelmed, time-crunched and expect you the mortgage professional to deliver more value, constantly.

Brand the Broker-Client Experience

A recent Gartner survey on the role of marketing in client experience found that 89% of companies expect to compete mostly on the basis of customer experience, versus just 36% four years ago.

It is imperative to think about: Why did you become a mortgage professional in the first place? What purpose do you serve? How do you make homeownership better for your clients?

Our customer experience roadmap informs every conversation we have at Mortgage Magnates and client engagement:

  1. Brokerage Vision
  2. Development Purpose
  3. Learning Objectives
  4. Client Engagement
  5. Experience Preparation
  6. Delivery and Follow up

Notice that the first four points are all about discovery. This is the biggest part of our belief and the Mortgage Magnates experience. We’ll walk clients and brokerages through our experience when we white label the platform for them. We spend that much time getting to know our clients (the first four steps) BEFORE we commit to any experience preparation.

For example, we are often brought in to deliver presentations. Those plans are pretty standard. They typically include a couple of calls to plan the presentation, slide deck approval with the client, the presentation notes and occasionally a meet and greet following the presentation to see how we impacted the audience.

But we also include a very imperative opportunity to customize and personalize the experience for the brokerage beyond the standard presentation to deliver more value for the Mortgage Magnates client. We obsess over how we can continually upgrade and update our approach.

For example, we recently helped a brokerage plan a kick off meeting for 2020 at a local ski resort where we will deliver a presentation to more than 300 brokers and agents and company representatives. To elevate the engagement, we will:

  • Hold a series of discovery calls to better understand the brokerages challenges, opportunities and learning objectives and align around the desired outcome for a successful presentation. Frankly, this is a fairly standard expectation.
  • Surveyed brokerage agents, brokers and stakeholders to understand their goals, challenges, opportunities and learning objectives. We will use that insight to establish clearly-defined expectations around content, delivery and the presentation details.
  • Spend a morning or afternoon in the brokerage with brokerage leadership to better understand their commitment to culture and client experience and their vision for the brokerages future.
  • Created a planning document with relevant industry trends we intend to touch on, research, our understanding of the brokerage profile, broad industry competitive intelligence we can share, recent news stories we have found and insights related to the future direction of the brokerage.
  • We Offer to conduct quantitative research to further customize the curriculum for the kick off meeting.
  • Review the talking points of each presentation that will either precede us or follow us to ensure there is no overlap and that we provide a unique experience and perspective. Understanding that the rest of the messages of the day help us tailor our presentation.
  • Plan to Participate in the Rest of the Day. We always participate in as much of the day as our speakers’ schedules allow prior to and following our presentation. This allows us to gauge the pulse of the day and ensure our message makes an impact.
  • Follow through. We deliver “after care,” which we send after every presentation — it includes a portfolio of our streaming videos and articles that our clients and brokers can use to keep the message alive inside their business for months, inspiring new conversations and sales ideas.

We, as should you, want to show up prepared to make the maximum impact. It isn’t just about that time in front of brokers — every touch point with an M|M client is an opportunity to add value, advance a relationship and move beyond the “transactional approach” into a more meaningful partnership.

“You are rewarded in public for what you have intensely practiced & refined in private!”
Tony Robbins

The invitation to kick off an important meeting like this for a large brokerage is an incredible privilege and we wanted to make sure we had earned the right to put on that red vest for our contribution. When you are prepared, you can meet the moment and clients with confidence.

If you’re feeling pressure of rate-driven sales conversations every day, stop the cycle now. Step back and consider your approach to your whole process.

  • How are you preparing?
  • How can you elevate the conversation to focus on value the client cares about?
  • How can you deliver the customization and personalization your customers expect?
  • How can you help customers solve big homeownership, debt or renovation problems or accelerate opportunities to be mortgage free?
  • How can you give more than the competition down the street?
  • How can you make it easier for clients to get a mortgage through you?

Prepare to win.

It’s way more fun than preparing to discount.

About the author: MM Stream Team M|M Team Member
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