Bank of America Has Issues
I recently went thru the process of refinancing my house. My original mortgage was with BoA. I initially contacted my original loan officer and asked if there was an opportunity to keep my business at BoA, simply because we were already there.
If it’s true that its harder to win a new customer than to sell an existing customer new things, you would never have known it by the process I went through after that. I sent multiple emails to my rep, and all but the first one went without a response. After my first email, I received a call telling me that the markets had tightened, and that there was no way to refinance now.
I waited a couple months, then asked again ( knowing that I probably could go elsewhere now, as the stimulus money had hit, and things were a little looser at the major banks ). I received no response at all.
I finally moved on and started shopping around. I was able to find an unbelievable rate with another lender ( also a major bank ) and started the process to move my business to that bank. I don’t own a massive home, but the amount of income my loan was worth to the bank over the life of the loan was substantial.
At no point anywhere in the process ( calling in for the payoff amount, informing them I was moving elsewhere ) did anyone call me and try to win the business back. It seems like, if I were a bank, that in these troubled times I would do whatever I could to keep paying customers on board. I would have systems that alert the appropriate people when inquiries are made about loan payoffs.
“Mr. Barstow, I understand you inquired about paying off your mortgage today. Is there a reason you are looking to move your business? Is there anything we can do to keep it?”
A couple of simple questions as part of a simple process, and maybe they could have kept me as a customer.
I think this is why big companies, for the most part, inspire no customer loyalty. Had I been at a regional or local bank, I bet I would have heard from someone, and I bet I would still be a customer.