J.D. Power released its 2016 U.S. Primary Mortgage Servicer Satisfaction Study, revealing that servicers who invest strategically in the customer experience can not only recapture that investment, but also increase profits and raise customer satisfaction.
The study was conducted from March through April 2016, and was based on 7,542 customers who have had a mortgage on their primary residence for at least one year. J.D. Powers had measured customer satisfaction with the mortgage servicing experience in six factors: new customer orientation; billing and payment process; escrow account administration; interaction; mortgage fees; and communications.
The mortgage servicer with the highest ratings was Quicken Loans with a score of 850, followed by Huntington National Bank with a score of 828. The servicers with the lowest rankings were Ditech Financial with a score of 657, and at the bottom of the list was Ocwen Loan Servicing with 650.
Craig Martin, senior director of the mortgage practice at J.D. Power had said, “Servicers with a captive audience can often view taking measurable steps that improve the customer experience as an unnecessary investment. They aren’t against improving satisfaction, but cost containment is their top priority. The study clearly shows, however, that interacting with customers more efficiently—and more effectively—can reduce costs and increase profit for servicers regardless of the business model, while having the added bonus of improving satisfaction.”
The study identifies four primary ROI benefits for servicers that invest in improving the customer experience:
* Complaint reduction: Enabling customers to find answers to their own questions before making a call and resolving issues on the first contact reduce the number of repeated customer contacts and escalations, which can draw the attention of regulators and other agencies.
* Cost containment and reduction: Eliminating the need for any contact and increasing the use of self-service channels can reduce customers’ reliance on the live phone channel.
* Limiting portfolio loss: Delivering a satisfying experience dramatically improves the chances customers will consider the lender for future mortgage needs, which protects against undesired attrition and supports future revenue growth by reducing acquisition costs.
* Developing new business opportunities: Delivering a highly satisfying experience can promote increased cross-sell of existing customers or lead to more new business with partners.
“Most servicers tend to focus on the complaints they receive, but the truly successful servicers get to the root causes of problems and take a more proactive approach,” Martin said. “They realize better communication and self-service options can help their bottom line by reducing unnecessary calls.”