The following is an excerpt from an article in National Mortgage News written by Jornaya's Head of Consumer Finance Mike Eshelman. Go here to read the full article.
Retaining customers is hard work during normal times, but retaining customers at scale while interest rates are at incredible lows is downright daunting. Retention models that worked in 2019, failed in 2020 and continue to fail in 2021 — but not for the reason many think. It’s not due to the rate environment, it’s the lack of knowing which individual customers are back in-market before your competition knows that is hindering your success at recapturing their business.
There are only a handful of servicers who have unlocked the secret to achieving high retention rates, and they are performing over 3x better than the industry average of 18%. How are they doing it? It’s all about the data. New data sets exist today to enable better identification and personalization of engagements, which didn’t exist previously and that is giving the competitive edge to the first movers.