J.D. Power warns mortgage servicers not to lose focus on the customer experience - Nuance - ContactCenterWorld.com Blog
Each spring, J.D. Power surveys customers of U.S. based mortgage servicers to measure their satisfaction in six factors: new customer orientation; billing and payment process; escrow account administration; interaction; mortgage fees; and communications. The results of the 2017 study are out and the findings are a tough pill for the industry to swallow. After several years of steady improvement, satisfaction has plateaued, with a significant number of customers of the opinion their servicer cares more about profits.
That’s disappointing given the tremendous efforts most servicers have made to rebuild their business following the subprime mortgage meltdown. Much of this work involved complying with a dizzying array of new rules, regulations and regulators at the state and federal level which required a significant investment in staffing and increased cost per performing loan by an estimated 300%. That hardly suggests a focus on profits at the expense of customers.
No matter – perception is reality, and that means servicers must up their game when it comes to customer engagement. What would that look like? In reviewing the findings of the study, Craig Martin, senior director, mortgage practice at J.D. Power says:
“Mortgage servicers have three very clear areas of opportunity to help drive success: effective onboarding, high-functioning self-service tools and call center best practices that optimize customer contact in step with changing customer demographics and needs.”
While addressing those satisfaction opportunities could raise servicer costs even further, it doesn’t have to be that way. Here’s my take on how servicers could best address each of these three customer pleasing imperatives while improving profitability at the same time.
The study found that when onboarding satisfaction is high, customers are more likely to use the servicer’s website as their primary communications channel and submit payment via the web. They are less likely to have used a call center, experienced a problem, or paid their bill via check.
To create a better onboarding experience, in addition to sending a welcome packet, consider delivering an interactive voice message to welcome to new borrowers. Automated welcome calls have been shown to be 30 percent less costly than using agents to verify loan details, drive enrollment in automatic payments and gain consent for even lower-cost text communications in the future.
The average satisfaction among borrowers who do not use the servicer’s website is 43 points lower than among those who visited their website in the last 12 months. But in a complex business such as mortgage, finding the right answer is often a challenge.
Implementing an intelligent virtual assistant will improve the self-service capabilities of your website. Virtual assistants can work like a digital persona that delivers personalized, effortless customer service via a human-like conversational interface. When utilizing a natural language interface, virtual assistants can engage with your customers efficiently, consistently and as conversationally as a human employee would to answer questions and assist in using relevant self-service features at a significantly lower cost.
Call center best practices
Among all mortgage customers, 10 percent say their time was wasted during their most recent interaction with their mortgage servicer. Overall satisfaction drops 285 points when customers believe their time is being wasted. Among those who believe their time was wasted, 66 percent indicated having waited five minutes or more to speak with a customer service representative.
Since most servicers use an IVR to initially answer calls, it makes sense start there when addressing this issue. If more borrower’s problems can be resolved in the IVR, fewer callers will experience a long wait for an agent. I recently published an article in Servicing Management offering a “crawl, walk, run” strategy for IVR modernization that helped one large servicer improve call containment by 27 percent and save a projected $1.5 million annually.
If you are looking to improve the borrower experience, put these technologies to work. Then when the 2018 J.D. Power study is published next summer, you’ll not only move up the satisfaction rankings, you’ll have saved enough money in your operational budget to celebrate the achievement.
Publish Date: August 8, 2017 5:00 AM
|All Suppliers||Get Listed|
Genesys® powers 25 billion of the world’s best customer experiences each year. Our success comes from connecting employee and customer conversations on any channel, every day. Over 10,000 companies in...
|PREMIUMFuture Gen International Pte Ltd|
(VIEW OUR PAGE)
Outsourcing provider of English Call Centre services, Audio Transcriptions, Big Data ETL (Extract, Transform, Load) , Big Data Visualization, Big Data Predictive Model Generation
(VIEW OUR PAGE)
HigherGround develops data collection, information storage, and interaction analytics solutions that easily transform data into actionable intelligence, enabling operational optimization, enhanced per...
View more from Nuance
Recent Blog Posts:
|Assistants here, assistants there, assistants everywhere||February 16, 2018 5:00 AM|
|Why Punxsutawney Phil should not be the norm for prediction in customer service||February 2, 2018 5:00 AM|
|Become the psychic for your customer service||January 19, 2018 5:00 AM|
|Can cyber criminals “compromise speech recognition systems with ease”?||January 9, 2018 5:00 AM|
|2018 predictions: Five ways AI will make you love customer service this year||January 5, 2018 5:00 AM|
|Over and Out – Moving beyond the walkie-talkie voice interface: Part II of “What’s left to tackle in voice technology”||January 3, 2018 5:00 AM|
|A better user experience leads to better business results||November 29, 2017 5:00 AM|
|Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo: Part 1 of What’s left to tackle in voice technology||November 21, 2017 5:00 AM|
|Hear ye! Hear Ye! Speech delivers!||November 14, 2017 5:00 AM|
|Preparing for the “next one”: The importance of emergency outbound communications||November 7, 2017 5:00 AM|