Remortgaging with the same lender: what makes a customer stick around?
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Every month, hundreds of people google the potential benefits of staying with their current lender. The answers they receive are pretty standard. A product transfer can save you money, be less hassle in the short-term, and often save a lot of time in lengthy document/credit checks.
But beyond the practicalities of a remortgage, are there psychological reasons a customer may choose to stay with the same lender for a second time around? The short answer is, yes. Like every other consumer product, there are simple ways to build loyalty among your existing customer base; attachments that, when formed properly, may keep someone returning throughout the lifetime of their mortgage.
Brand loyalty is not a trick and it’s not a marketing gimmick. It’s created through quality and tailored communication, aligning your company values to those of your customers.
Remortgaging with the same lender:
What is brand loyalty?
Brand loyalty is the psychological phenomenon driving customers to continually choose a specific brand over others. It’s a powerful force that, when leveraged, builds long-term customer relationships, drives repeat business, and increases profitability. But what motivates consumers to be loyal to a particular brand, and how can you tap into these motivations?
At its core, brand loyalty is the emotional connection consumers have with your brand. It is built over time, through positive experiences with your product or services, or through careful communication of your brand’s identity and values.
Trust is the very cornerstone of brand loyalty, prompting us to always return to a certain make of car, restaurant – or person – for specific services.
When it comes to making big financial decisions, trust is king. Brand loyalty can increase your revenue while you sleep; keeping you front-of-mind when it’s time for product renewals.
So, what keeps customers remortgaging with the same lender? Let’s get into the details…
How consumer decisions are made
The power of emotion
Brand loyalty is the ability to tap into consumer emotions – the heartbeat of effective marketing. Clients need to feel that your services are of a superior quality and value compared to those of your competitors. This is based on past experiences with your brand, word-of-mouth recommendations, and consistent messaging from you. Studies show that customer decisions are often guided by emotion, rather than rational thinking. Your clients want to feel good about choosing you over others, evoking a sense of pride or happiness in their decision-making.
The power of storytelling
Humans are natural storytellers. Our childhoods are filled with stories, and we remember them better than facts and figures. If you can tell a compelling story through your brand, you are more likely to capture the attention and imagination of your customers.
Whether you choose to tell your origin story, focus in on a customer journey, or talk about the lasting impact your services have on people’s lives, storytelling is a powerful tool in brand marketing.
The power of social proof
Social proof suggests people look to and follow others to fit in. Humans are social creatures, who crave community. This instinct means we tend to look for validation from others to make our decisions. The power of social proof lies in its ability to influence people’s perception of a brand, product, or service. When we see others recommending a service, we are more likely to follow suit. This creates a positive feedback loop, where more people start to use it, in turn providing recommendations, and so on.
By showcasing positive social proof, businesses can persuade potential customers to take action, whether it’s making a purchase, signing up for a newsletter, or remortgaging with the same lender. This can result in higher conversion rates, which ultimately leads to increased revenue and profits.
Examples of successful brand loyalty
Well-executed customer loyalty campaigns don’t just push products and services; they aim to make people feel a certain way. This creates an association with a company based on something more than a simple transaction.
The Coca-Cola Christmas Campaign
“I’ve seen the Coca-Cola advert! It’s officially Christmas!”
How many times have you seen that post across your own personal social media feed? For many, seeing these ads on TV or online signals the start of the Christmas season. Coca-Cola have designed the ads to create a sense of warmth, nostalgia, and happiness – all emotions that are also associated with Christmas itself. They have developed a strong emotional connection with their audience and it’s incredibly powerful. So powerful, that companies like John Lewis and Aldi have swiftly followed suit.
HSBC’s UK Global Citizen Campaign
“We are not an island. We are something far, far bigger,” Richard Ayoade narrates in HSBC’s successful ad campaign. Released in 2017, you would be forgiven (and likely correct) for thinking this advert was a direct response to Brexit and the sudden psychological borders that sprung up in its aftermath. Tapping into the sense of uncertainty and isolation, HSBC positioned their brand as one that embraces multiculturalism and opportunity – leading the way forward, providing reassurance, and uniting consumers.
Financial services firms don’t always have to stick to practical, product driven messaging. We can and should be thought leaders.
When it comes to remortgaging with the same lender, consumers want to feel they are in safe hands, with a lender who’s values align with their own.
Remortgaging with the same lender:
Why is brand loyalty important?
Consumer trust and satisfaction
We’ve said it before, but it bears repeating: Brand loyalty means your customers trust you. It means that the service you provide, and the message you’re sending aligns with their own values.
With new Consumer Duty requirements, you are likely to already be focusing on how to deliver better outcomes for your clients. Making sure they feel heard and supported is half the battle. Building a brand that makes a client feel safe and reassured is invaluable.
You begin with brand awareness; getting out in front of your customers so your brand becomes familiar. But unlike awareness, authority cannot be bought in paid ads or well-placed jargon. Achieving brand authority means you have established yourself as leaders in the industry, having convinced your audience through rich and valuable content that you know what you’re talking about.
Samsung have brand authority over any other android smartphone on the market. Which is why, if you’re into tech but don’t want an iPhone, you really only see one other choice. People want the best. And they want you to demonstrate that you are the best.
What could be easier than your clients doing a large part of your marketing for you? If your customers are loyal, they will provide recommendations, reviews, and repeat business.
That means a large chunk of the time and effort you currently put into generating new leads will be done for you. And that positive feedback loop means the benefits only increase over time, so long as your service and communication continue at a high standard.
How do you achieve brand loyalty?
It’s not an easy road, but it is a worthwhile one. Brand loyalty is not only the most efficient way to increase your revenue, it also means you are excelling in your field. But how do you go about building it?
- Authority: Create rich and tailored content for your clients.
2. Trust: Keep your messaging and visual design consistent across all touchpoints.
3. Relevance: Stay on top of consumer trends and behaviours – adapt your messaging accordingly!
5. Proof: Encourage your clients to leave reviews, ratings and endorsements.
5. Lead: Monitor your competition and be the first to address difficult topics.