Building Lasting Relationships for a More Sustainable Reverse Business Model…The Next Steps
Monday, 29 March 2010 09:54
Articles - Sales and Marketing
...this is not speed dating
In an article by Mark Huffman for the magazine Consumer Affairs Online entitled: Is a Reverse Mortgage a Good Idea? He ended the article by writing, “Even if the reverse mortgage is not a scam, it may come with so many charges and hidden fees to make it a bad deal. And of course, the person trying to sell it to you probably won't mention that.” (You can read the whole article at the link provided at the end of the article.)
What?!! Okay, don’t blow a gasket! As infuriating as these types of comments are, it underscores the need for diligence in the continued battle to reverse (no pun intended) many of the public misconceptions of the product that we so strongly support. The bigger issue, however, is the types of experiences our valued customers are having that would force this type of commentary.
In a recent article in the Dec /Jan issue of the TRR titled, Building Trust with Reverse Mortgage Clients, I referred to a 2007 National Survey of Reverse Mortgage Shoppers by the AARP that over 50% of the reasons many borrowers were dissatisfied with their lender was due to a lack of product knowledge, an inability to properly explain or provide enough information, answer questions and a lack of respect.
Be Informed
The last thing our industry needs is an overzealous originator to go unchecked and loose their focus of the true objectives of providing a meaningful financial alternative to a senior’s retirement planning. To that, I would say there are solid legislative systems in place to keep that from happening, but is that enough? Because of this, are the reverse mortgage companies in the industry implementing additional accountability standards to their best practices? Do you rely on your mortgage company to provide you with the materials and resources necessary to be the best reverse mortgage professional that you can be? Stay informed of legislative changes.
Use the Internet
Apply to popular website RSS feeds and email lists that focus on industry changes and share opinions, like The Reverse Review. Other sires like LinkedIn have group forums and discussions in just about every industry and topic. Plus they are good sites to network with other professionals.
Talk with others
As mentioned above, become part of a network of informed reverse mortgage professionals that share the same quest for knowledge. Create your own group at work. Don’t just talk at the water cooler about last night’s game or the latest deal you got on your new PDA. Meet once a week, create dialogue and share your experiences with others. This will help create a context for what works and does not work with your clients.
Take your time and be engaged
We aren’t speed dating. Take your time and ask questions. Make sure to spend a lot of time here and be patient. In fact, I learned a long time ago that the amount of time we spend with a prospect is relative to the success we have with converting them to a client. I am not talking about simply asking them the questions on the application. Take some extra time to get to know them. Remember you’re not there to just make a sale. You are there to help the client make an informed decision. Without the right information, how can you make proper suggestions?
Know your Client
We have already established that Reverse Mortgages are not for everyone. But in our continuous search for the right prospect to sell our product, is our judgment compromised by not doing the proper amount of due diligence in our discovery and application process?
Get to know the client. Have a meaningful conversation with them. Ask them about their family, their likes and dislikes, where they grew up or where they go to church. We are looking for some common denominators to establish a connection with our client. The more we know about our client, the better chance we have of moving them successfully through the process. I have always said, “Lenders that…. effectively establish rapport with their clients will significantly improve their chances of successfully originating a loan.”
Be Empathetic
This is not a game! Reverse mortgages fill a serious need for the senior market and we need to elevate our level of compassion when dealing with the same generation as our parents or grandparents. Remember they are someone’s parents or grandparents as well.
Be Compassionate
Zig Ziglar said, “You will get all you want in life if you help enough other people get what they want.” Okay, that makes sense, but you say you have learned the sensitivity of selling in the senior market and how to talk with them and their trusted network of advisers. So, ask yourself the following question. Am I moving closer to helping my client or is my motivation to simply drive revenue for my employer? This is important because, I believe we walk a fine line everyday between an approach of sincerity and generosity in our business without it appearing that we are in it only for money. Notice I said generosity, not charity. We are after all in business to provide for our families and meeting our own personal obligations, while we work to grow the companies with which we work. This doesn’t mean we can’t have a level of compassion. Give seniors credit, they know this, but also don’t be fooled. Seniors have the experience to know when someone’s intentions are not true. Be compassionate about the products and services you are offering.
These are valuable tools in building meaningful relationships with our clients. The more we work on this, the quicker we can bring credibility and integrity to our profession. And, subsequently the more our profession will grow. Remember we are all going to be old one day and may need the services of a reverse mortgage professional. Let’s all continue to work hard to make sure our industry is around so that others and we will be able to benefit from all of our hard work.
Read more: http://www.consumeraffairs.com/news04/2009/10/reverse_mortgage02.html#ixzz0fjdz2QHp
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