Now more than ever, with the limited amount of product selection available, mortgage origination is a commodity business. Therefore, one must compete on service more so than price.
Shep Hyken, a customer service expert, declares giving the client more than they expect can turn them from satisfied customers into loyal ones.
His example was how top-notch hotels got creative a few years ago when preparing their guests' beds at night. A friend of his, Hyken reported, commented the hotels were looking to raise their service level to another level.
"In a sense he was right, but overall this was not about the service, but the experience. But, these hotels are on to something," he said. But once the hotels got past the amenities, to move to the next level, "they provided excellent service. That is what made guests want to come back. It wasn't the newspapers or fluffy towels. As long as the guest got those amenities, which are now basic standards, the service factor kicked in."
Hyken provided a strategy for sales-oriented businesses to follow that starts with recognizing when your business has become a commodity.
"Does your service strategy help to reduce or even eliminate the commodity trap? If so, you are on the right track. Now, what can you do to make it better?" To take clients beyond great service a business must add what he calls the "experience strategy."
His examples: "The restaurant that brings you complementary appetizer samples just to let the guest enjoy something new and different; The grocery store produce department that let's you sample the fruit; The mail order catalog company that includes overnight shipping. The list can go on and on.
"Notice that all of these things appear to be extras. They aren't. They are calculated into the price, but the perception is that they don't cost. But, these extras create perceived value, help to eliminate the commodity trap and raise the customer experience.
"It doesn't have to be something you give away. Companies use smell, touch, feel, color, etc. to help create a customer experience. Companies such as Federal Express use dependability.
"It doesn't matter what business we are in. We compete for customers. What we sell has to do what it is supposed to do. We have to deliver with service. And finally, if we are really good, we'll take it to the next level with an 'experience strategy.' Make the customer 'feel' how good we are," Hyken said.
