Mortgage Daily Logo
mortgage news from industry experts

Let’s Get Together

Industry Commentary

Let’s Get TogetherFive Ways To Keep In Touch With Past Customers

July 16, 2005



Your previous customer base should always be your most important target. Sales is a relationship business. We spend an inordinate amount of time trying to develop relationships with people we don’t know while we ignore relationships which already exist. With our previous customers we have already expended a tremendous amount of energy and done much right:

  • We have made a contact;
  • We have converted a lead;
  • We have delivered a valuable service.

Why start over and over again, making cold calls when you can be building upon these relationships? There is nothing less stressful than repeat business from a previous customer or a personal referral from the same. We start the sales process with an element of trust which we have to earn when dealing with cold leads.

To take advantage of these relationships, we cannot assume that referred business will walk in the door. We must nurture these relationships, letting them grow. We can’t do this by keeping in touch once every three years when our business is slow. We must be in touch constantly. And we can’t be in touch using sticky notes. Sticky notes do not constitute an effective follow-up system. Here are a few elements which will help us build a first class follow-up system for our previous customers.

1. Computerized Contact Management Systems
Yes, to effectively keep in touch you must have a computer with a database and contact management software. The database must have relevant information about your clients (for example, when did they purchase and what are their preferences?). The contact management function must record your previous conversations so that you are always up-to-date. When you speak to the customer once every year, it is hard to remember all of the relevant details of your previous conversation. On the other hand, if you start out with a question such as “How is that Camaro Running?,” the customer knows that you cared enough to remember something about them which further elevates the level of trust.

The contact management system should also group customers according to categories which will help you target certain segments of your database. It should also let you know when important dates are approaching through an alarm system. Each day, your computer should let you know with whom you should be making a follow-up phone call or sending another form of communication.

2. Personal Value
You must provide value to your database on a regular basis. Letters are not valuable (though letters may contain offers of value). Newsletters, articles and other information are extremely valuable if they are targeted to your clients’ needs. So are offers for other professional services which may enhance the lives of your clients.

3. Third Party Value
Sending a communication that offers something of value provided by another party serves two purposes. It diversifies the value that you can offer. It also provides value to the other party through the provision of access to your customers via a partnership. Of course, you would expect reciprocity from them. In other words, you can now increase the size of your database to include the contacts of additional partners.

4. Response Mechanisms
Do not merely send the value. Offer to send the value in a newsletter or letter. This will cause your customers to call to request the item offered. Every telephone conversation is an opportunity to fill needs for your clients and also ask for additional referrals. Calling a thousand customers to determine which one has a need is much more difficult than using a response mechanism so that they selectively call you when they have a need. Of course, follow-up calls to those who do not respond can be more effective than a call that is not warmed up by such an offer.

5. Special Events
Special events for your personal clients are a great way to follow with several of them at once. Perhaps you could hold a seminar on a topic with a synergy marketing partner. Remember, this event is not merely to sell but to provide value. Allow them to invite a guest. You might hold a holiday party or rent a movie theater for a special showing of a first-run movie. The possibilities are endless.

Keeping in touch is just the first step. If you do not have a database of your previous customers, you will be prevented from taking the first step. The key is providing value to your previous customers on a regular basis so that your relationship is continually upgraded. It sure beats cold calls!

Dave Hershman is a mortgage industry author and speaker — with 8 books and hundreds of articles to his credit. He also heads Mortgage School.

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts