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Imagine owning a restaurant, pouring all of your time and effort into it for years, then having someone come in, look you in the eye, and say, “Your food is not as good as you think.” Nobody wants to hear that, and yet celebrity chef Gordon Ramsay has made a career out of telling people just that, particularly on his popular show, “Kitchen Nightmares.” I often feel like I’m playing the part of Ramsay, and not because I’m a good cook. Rather, it’s part of my job to let executive leaders in the mortgage industry know that despite their passion and self-proclaimed customer obsession, the end product, the actual experience customers are having on their loan journey, is probably not as good as they think.
Our question this month: Is our focus on delivering a positive, seamless customer experience, or are our processes unintentionally driving clients away?
If you’ve ever watched “Kitchen Nightmares,” you know that in every episode, Gordon Ramsay visits struggling restaurants and uncovers a range of issues that are often preventing them from thriving. He’s a little gruff and has about zero bedside manner (which, let’s be honest, creates the drama needed to get ratings), but he’s almost never wrong in his assessment. And the issues he uncovers aren’t just about bad food—they’re about poor customer service, disorganization, and a lack of attention to detail. Much like a failing restaurant, mortgage companies that fail to focus on providing exceptional customer experience have little hope of sustained growth through tough markets, no matter how competitive their rates are.
Studies show that nearly 70% of consumers say that after a bad customer service experience, they’ll simply choose a different company next time, regardless of the quality of the product. In other words, you could offer the lowest mortgage rates in town, but if your customer experience is lacking, potential clients will quickly look elsewhere.
Let’s put on our Gordon Ramsay hats for a moment and examine what mortgage lenders must do to avoid becoming “Mortgage Nightmares.”
One of chef Ramsay’s first steps on “Kitchen Nightmares” is to improve a restaurant’s communication and transparency. Often, the kitchen is chaotic, the waitstaff are uninformed, and customers feel out of the loop. For mortgage lenders, the same principle applies. Best-in-class lenders not only keep their borrowers always informed—about their loan status, required documentation, and any potential delays—they do it in style.
I’ve watched the best LOs in the business follow this general flow during their first borrower conversation:
“Mr. Borrower, this is how I generally like to communicate updates throughout the process: I’ll email you a weekly update of progress every Friday. I’ll text you if I need something quickly, and I’ll call you at these three milestones, because they’re a big deal and I want to celebrate with you.”
On “Kitchen Nightmares,” Ramsay often finds that the restaurant’s menu is too complicated, confusing customers who just want a simple meal. Similarly, in the mortgage industry, a long, complicated process, fraught with complicated forms, long waiting periods, and too many paperwork requests can confuse and frustrate borrowers.
Clarify the process. Make sure to provide clear instructions at every step. If an online application or other web interactions are required, offer to walk through it with them on a screen share. Make sure they can easily find information, access their file, and contact customer service. If not, make sure they have your “Batphone” (i.e., always pick up).
Ramsay is a firm believer in delivering a personalized experience. Whether it’s tweaking a dish to cater to specific tastes or improving the ambiance, personal touches elevate the experience. Make sure you do the same—treat each borrower as an individual with unique needs and goals.
Imagine if your mortgage business were to adopt the same strategies Ramsay uses to transform failing restaurants—clear communication, simplified processes, personalized service, and ongoing support. Just like a well-run restaurant that serves excellent food with impeccable service, a mortgage lender that prioritizes the customer experience will see increased customer satisfaction, loyalty, and referrals.
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