Are You Really Putting The Law Of Reciprocity To Work In Your Mortgage Business?
BATTLECALL GUEST EXPERT: Tom Domin, Mortgage Marketing Toolkit
As you probably know..."The Law of Reciprocity" states that when you give something of value away for free (generating goodwill) the recipient is often times grateful and feels obligated enough to give back something in return.
Stephen Covey, author of "The Seven Habits of Highly Effective People," describes the principle of reciprocity as a credit - debit process in relationships. Using a comparison to a financial bank account, the emotional bank account describes the trust and loyalty that accumulates in a relationship. Like the financial bank account, you must make deposits to the emotional account before you can make any withdrawals.
Successful mortgage professionals recognize this concept of "reciprocity" as a very powerful form of marketing. This expectation of giving and returning favors between two parties creates an obligation to be loyal to people and to stick to agreements.
"Reciprocity" creates a very compelling psychological binding. Although your mortgage customers, prospects, and service providers never discuss this expectation openly, when done correctly, it is always present, and most definitely can affect your future relationships and business arrangements with them.
There's no doubt you're already using "The Law of Reciprocity" in your mortgage business. You're probably sending mortgage news, checklists, tips, and information periodically to your customers and prospects.
You may have also taken an office employee to lunch or bought flower arrangements for your staff...or, you may given your appraiser a quick FSBO appraisal lead...or, you may have passed a listing lead to your Realtor/Agent from one of your FSBO customers.
You may even provide your mortgage customer/prospect a short list of reliable insurance agents to work with...or, you may provide a terrific manual to FSBOs to entice them to work with you...or, a list of attorneys they might use to review their FSBO sales contract.
The possibilities of creating this aura of "reciprocity" are really endless, and are only limited by your imagination. One loan officer I know who works in an area heavily populated with parking meters goes out of his way to put quarters in "expired" meters. He swears that this practice is productive for him. He leaves a short handwritten note (prepared in advance) with his business card on the windshield. His note simply says: "Your meter was expired and I extended your time. Hope that saved you a parking ticket...Joe."
Can you understand the possible respect, the goodwill, and the loyalty, that a simple action like this creates? Many people do get this "warm fuzzy" feeling as a result, and then take action to "reciprocate." They feel both comfortable and obligated to you, and seek out your mortgage knowledge and expertise.
In summary...By offering free services and giveaways to mortgage customers and prospects you are building a very powerful business strategy. Your mortgage information is truly the ultimate free giveaway. To begin with it's free, economical for you to distribute, and has a high perceived value.
Your customer/prospect recognizes the value you are giving them and compels them to continue the relationship with you and want more of your valuable information. If you use "The Law of Reciprocity" to your advantage, you'll be taking the first important steps to creating a lifelong and very loyal customer base for your mortgage business.
About The Author: Tom Domin has over twenty-five years of experience in sales and training in Real Estate and as a Licensed Mortgage Broker. He is currently publisher of "Tom's Mortgage Tips" a twice monthly Mortgage Newsletter for Mortgage Professionals. You can sign-up by visiting http://www.mortgagemarketingtoolkit.com
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