Ph.D. Talks About Secrets to Getting More Business

Kerry L. Johnson, Ph.D., who previously played professional tennis, heads a personal coaching company — Peak Performance Coaching — which guarantees a 70% increase in business within six weeks.

The first tip he gave convention attendees was to touch prospects on their lower arm for less than three seconds as doing so has proven to be an effective technique that will make people retain information given to them and act upon it.

In a study in which a researcher left a quarter on the ledge of a phone booth and then approached the culprit who took it, when the researcher asked the culprit if he or she had snatched the coin, only 23% returned the coin, Johnson said. When a light touch below the elbow accompanied the inquiry, a majority of the culprits reached in their pockets and returned the quarter.

In order to duplicate volume, loan officers must establish and maintain a relationship with borrowers.

“What you know about people right now is more important than what the Fed has done, what the Fed didn’t do, or where refi loans are at right now,” Johnson said. “I think your people skills are the most important skills you’ve got.”

He highlighted that 87 percent of “your best clients care more about the relationship with you than they do about the price or the rates,” and that “only 17% of the loans that were done this year were done with the lender who did their last loan.”

The first of four stages of a client relationship lenders cannot ignore; the approach.

“Loan originators do not fail because they don’t know the difference between ARMs and fixed, they fail because they flat out don’t see enough people.

“My definition of LO who makes big time money; its up to his ability to make cold calls, but never, ever has to do it,” Johnson said, adding that nine out of 10 people contacted through a phone call reject loan officers.

On the other hand, using techniques to generate referrals on a daily basis can make a huge difference in a lender’s business — when loan officers contact people they get through referrals, seven out of 10 people will talk to them out of respect for the person who referred the source to them, Johnson said. He added that 50% of customers will refer business two or more at a time and 38% of these referrals will do business with the loan officer who called them.

Johnson outlined five steps originators can take to generate referrals.

First, always tell the client why they’re referral is necessary by using these exact words, “I love doing business with people like you. “Who do you know who could benefit from the relationship we have so far?”

Next, recognize that every client knows a minimum 250 people they could refer to you.

Also, get to know something about the client’s personal life, such as whether they have children or if they golf.

Remember to religiously maintain contact with borrowers every three months to catch up, update and ask for referrals.

Finally, use “the comfort response” when meeting with new prospective borrowers by saying: “I love working with people like you. What would I have to do over the next few weeks to make you feel comfortable enough to give me introductions to your best friends?”

While the techniques work, Johnson said, 85% of the audience members would not use these techniques because they’d go back to doing what they’ve always done.

Johnson listed probing as the second stage of a relationship, in which questions are asked, a deep analysis takes place as well as fact finding.

It is important to inform consumers about the product and the lender, Johnson said, “but, I don’t think people buy the loans, I think they buy you.”

The three things borrowers want most from their lender or loan officer are information about the loan product, have their mortgage monitored, “like you monitor yours for the best rates all the time,” and they want frequency of the relationship.

The remaining two stages of the relationship with the client are presenting solutions and closing.

Johnson added that women are better at selling because they get people in the door and seek people faster, and are “better at probing physical emotion quicker than men do.” But, men are better presenting in closing because the care less about relationships and breaking apart in case people say no.”

“Today, how you open is more important than how you close. The better you probe, the less you have to close…the longer they stay closed…the quicker they close themselves…[and] more of their friends may close for you.”

To grow business by 70% or up to 200% in six weeks, the prospect’s trust must be gained, which can be done by mirroring the potential borrower.

“People buy from people who are similar, they avoid people who happen to be dissimilar…[and] can’t predict behavior,” the coach said.

Mirroring the perspective’s verbal cues and body language are ways to gain trust. In other words, if the person talks in a high pitch voice, the loan officer should speak that way, Johnson said. However, he warned mirroring must not be done too quickly. In person, the loan officer should wait 20 to 30 seconds from the encounter and by telephone should wait seven seconds.

In his concluding remarks, Johnson passed on to mortgage bankers “the 12 most persuasive used words you can use in advertising, direct mail pieces, any place, any time,” which are discovery, easy, guaranteed, health, love, money, new, proven (to work), results, safety, save, you, and as a bonus word, free.

He also said the interested mortgage professionals would need to read and hear about these tips on a daily basis to reach the increased business goal.