Customer Loyalty Case Study in the Mortgage Industry

Mortgage Company X was positioned in a very competitive market that was part of a highly fragmented nationwide mortgage industry.  Company X needed a way to differentiate itself from the competition and a way to elevate itself above other companies.  They were able to secure a position as a market leader in the mortgage industry by focusing on the selling channels rather than the end customer. 

SITUATION 

Mortgage Company X surveyed its customers to determine how its customers evaluated the value they received from their mortgage company.   Contact with a representative from the mortgage company was found to be an important element to the customers’ overall value evaluation.  Therefore, Company X decided to focus on the representatives or the main touch points for customers.  As a result of the customer survey, Company X then surveyed channel sources to identify people who would serve as a referral source for Mortgage Company X. 

IMPLEMENTATION

Company X focused on the customer’s main contact, which was the referral source, by providing them with more incentives and added benefits if they brought Company X additional business.  The referral sources, made up of persons such as lawyers and sales representatives, were successful at obtaining and keeping customers for Mortgage Company X.   As the main contact for the customers, these referral sources were able to provide quick responses to the customers’ needs.  The referral sources were able to offer valuable information and communication to the customers of Company X in a timely manner.  As a result of the referral sources’ success, Mortgage Company X experienced an increase in market share and an increase in profits.  Mortgage Company X also saw a reduction in employee turnover as a result of the referral sources’ success.

KEY FINDINGS

• Main points of contact within an organization play the greatest role in impacting customers’ experience with the organization.  For instance, a receptionist handling incoming calls can have more influence on perceived value than the CEO.
• Keeping close contact with all stakeholders plays a critical role in customer loyalty.  In this case, outside contacts or referral sources helped to increase the company’s profit.
• Continuously gathering input from all parts of a business including customers, employees, and stakeholders will induce added value.  And increasing value leads to increased loyalty, which ultimately generates higher profits.