Retention is the final stage in the mortgage customer journey.

As the only post-purchase stage, it requires an entirely different approach than the others.

In the mortgage industry, retention involves maintaining and nurturing relationships with clients long after the initial mortgage transaction.

Effective retention strategies can help you:

• Earn repeat business and referrals
• Reduce marketing and acquisition costs
• Build a strong reputation in the market

In this article, we’ll examine retention’s role in the homebuyer journey, mortgage marketing practices that help you retain customers, and barriers unique to the industry.

What do customers need in the retention stage?

While acquiring new clients is important, many mortgage professionals need to remember the value of keeping current clients engaged for future opportunities.

Especially in high-rate environments, there often will be opportunities around the corner to refinance for a better rate, terms, or different mortgage products altogether.

Mortgage customers need the following support in the retention stage:

• Ongoing communication providing news and updates
• Practical resources that help them manage their home and finances
• Loyalty and referral programs
• Community engagement and event opportunities
• Access to personalized assistance

Mortgage marketing campaigns focused on these elements will help your customers feel supported, engaged, and ready to act in their time of need.

How does retention differ from the other stages?

Let’s break down the key differences between the four stages in the homebuyer’s journey:

• Awareness stage: Potential homebuyers need basic information about their options and aren’t ready to make any decisions or commitments
• Consideration stage: Buyers want detailed information, expert advice, and tools to help them narrow down their options and make informed decisions
• Decision stage: Buyers are ready to choose a mortgage product and lender and are seeking reassurance and clear steps to finalize their decision and move forward with confidence
• Retention stage: Clients have completed their mortgage transaction but need ongoing support, valuable resources, and consistent communication to foster loyalty

With enough client data, retention strategies can be automated and sent only to those who fit specific targets.

Which mortgage marketing practices help to retain customers?

Homebuyer retention requires a multifaceted approach consisting of personalized service and continual value.

Here are some key strategies and mortgage marketing campaigns you can implement to ensure long-term client retention.

Regular updates and newsletters

• Market trends: Keep clients informed about changes in the mortgage market, including interest rate updates, new mortgage products, and economic trends that could impact their mortgage
• Educational content: Share articles, blogs, and videos on topics such as home maintenance, tax tips, and financial planning to provide ongoing value and demonstrate expertise
• Personal milestones: Send personalized messages to acknowledge important dates, such as mortgage anniversaries, birthdays, and home purchase anniversaries, showing clients that you remember and value them

Customer retention emails

• Tailored email campaigns: Develop segmented email campaigns based on client demographics and mortgage life cycle stages, such as home equity loans or refinancing opportunities
• Personalized messages: Use customer relationship management (CRM) data to personalize emails with clients’ names and content based on their mortgage type and financial goals

Loyalty programs and referral incentives

• Exclusive discounts: Offer discounts on closing costs, lower interest rates, or waived fees for clients who return for additional mortgage services
• Monetary rewards: Provide cash rewards, gift cards, or discounts for clients who refer friends and family
• Non-monetary incentives: Offer branded merchandise, tickets to events, or donations to a charity of the client’s choice for each successful referral

Workshops and seminars

• Homeownership topics: Host workshops on relevant topics, such as energy efficiency, home improvement, and tax planning
• Mortgage education: Organize seminars on mortgage-related topics, such as refinancing options, managing home equity, and the mortgage renewal process

Valuable content and tools

• Maintenance checklists: Provide seasonal home maintenance checklists to help clients keep their homes in good condition and include reminders for important tasks like HVAC servicing and gutter cleaning
• Financial planning tools: Offer tools such as budget planners, mortgage calculators, and financial guides to help clients manage their finances effectively

Technology

• CRM systems: Track client interactions, preferences, and financial information so you can more effectively target and automate your marketing campaigns
• Mobile apps: Develop a mobile app that allows clients to access their mortgage information, make payments, and communicate with advisors on the go
• Interactive tools: Include mortgage calculators, rate comparison charts, and home equity estimators on your website

Overcoming barriers to retention in the mortgage industry

The mortgage industry presents some unique barriers to retention.

By understanding these barriers, mortgage professionals can find strategic solutions to overcome them.

Long intervals between mortgage needs

This infrequency makes it challenging to maintain consistent client engagement over extended periods.

How to overcome this challenge: Keeping clients engaged with consistent and valuable communication helps bridge the gap between transactions. Even just sending holiday and homebuying anniversary cards will help keep you at the top of their mind.

Competitive offers from other lenders

The mortgage industry is highly competitive, and clients are frequently exposed to offers promising better rates, lower fees, or more favorable terms.

This makes it easy for them to switch lenders if they find a better value elsewhere.

How to overcome this challenge: Determine and promote what differentiates you from your competitors, such as quick and personalized service, competitive rates, or other benefits.

Client changes in financial situations

Client financial situations can change significantly due to job changes, income fluctuations, family growth, or economic shifts.

These changes can impact their mortgage needs and preferences.

How to overcome this challenge: Be a part of the solution. Offer regular check-ins, financial reviews, tailored solutions, and tools and resources to help clients manage their finances.

Frequently asked questions about mortgage customer retention

Collaborate with Kaleidico

Rely on our expertise as a mortgage marketing agency, and we’ll help your team generate leads that work best for you.

We can help you build a robust online presence that will continue to fuel your sales team—at every stage of the homebuyer’s journey.