Customer Centric Title Services

© 2008 October Research Corporation

Welcome to Your Future

Customer-Centric Title Services

© 2008 October Research Corporation

Discussion Points

CUSTOMERSEGMENTS

Clarifying Strategy

CustomerCentricity

Lifetime Value

© 2008 October Research Corporation

“I skate to where the puck is going…not where it has been.”

Wayne Gretzky

Where’s the (title)Puck Going?

The Trend Lines:Spitzer, NY 15%Garamandi / Poizner, CA: 22%New Mexico 6.3%Erin Toll / COCA/WA State: $25 and Rate CalcHUD-1 / GFE ReformHUD Closing Cost SurveyHVCC & GSE’sGAO ReportConsumer Federation TestimonyThe Iowa ModelTitle Wizards and Calculators

Regulatory & Consumer Pressures

Transparency: Consumer Marketing

Lower Premiums

Increased Competition

Reverse Competition

Reverse CompetitionThe practice of marketing settlement services to referrers rather than end users

Title CompaniesHow do you ‘compete’ for the consumer’s business?

LendersCompete and negotiate on rates and points

Realtors®Compete and negotiate on commissions

Home SellersCompete and negotiate on sales price

© 2008 October Research Corporation

How Will You Compete With:Regulatory and consumer pressuresConsumer-direct marketing campaignsTransparencies and open pricingReductions in premiums and/or splitsHyper-competition with underwritersCentralized production by underwriters‘Social networks’ & reputation mgt.Online ratings and reviews about you

Customer Centricity: Your Enterprise Strategy

1. Defining Strategy

2. Customer-Centricity and Lifetime Value of Customers

3. Customer Segments & Generations:

4. The Realtor® as the Gateway to Your Consumers

Consumer Boomer, X and YRealtor Boomer, X and Y Builder Boomer, X and YLender Boomer, X and Y

© 2008 October Research Corporation

Defining Strategy

“Strategy is the creation of a unique and valuable position,

by choosing what not to do and by creating fit among a company’s

activities.”Michael E. Porter

© 2008 October Research Corporation

The Forces That Shape Strategy

© 2008 October Research Corporation

Your ‘Unique & Valuable’ Position• Best Product?• Best Price?• Best Customer Experience?• Does your unique position align to the needs

and wants of your customer segments?• Your ‘unique and valuable’ position…is your

strategy!

© 2008 October Research Corporation

Getting to Strategy

1. Mission• Why we exist

3. Values• What we believe

in and how we will behave

2. Vision• What we want

to become

4. Strategy• Our unique and valuable position

5. Balanced Scorecard• How we will monitor

and implement the strategy

© 2008 October Research Corporation

Customer-Centricity: Your Strategy1. A way to maximize revenues per

customer….and not by product2. Understanding the values of different

customer segments and tailoring products and services accordingly

3. An organization-wide, long-term effort to focus objectives and execution around customer experiences and needs

The Inherent Conflict

Being Customer-Centric…IS… IS NOT…

• Starting with the customer • Product-centric or service centric

• Working with the right customers • Working with every customer with money

• Developing higher value to customers • Measure success by market share

• Training and compensating people based on customer metrics

• Train and compensate people on productivity metrics only

• Listening and acting upon customer insights • Manage customer insights

• Managing the customer’s experiences regularly

• Treat customer experience as ‘nice to have’

• Selling more products per customer • Sell less products to more customers

Customer-Centric vs. Product-Centric

Creating Customer DemandStrategy

Customer Centricity

Moments of Truth

Customer Feedback

Portfolio Manage-

ment

CRM

Social Media

CustomerDemand

Influences onThe Customer

Know Your Customer Touch Points

CustomerExperience

CRM

SALESREPS

OFFICESETTING

RECEPTION

PRE-CLOSING

CLOSINGPOST-

CLOSING

DOCUMENTS

TITLEPOLICY

WEBFRIENDLY

BLOGS, SOCIAL MEDIA

© 2008 October Research Corporation

Goal: Customer Loyalty

Your People:The Experience Creators

Experience:Memorable Human Touch

Relationship : Collection of Positive Experiences

Loyalty:Strong Relationships provide:- Share of wallet- Less defections- Referrals to new business

Loyal Customers are More Profitable

Customer-Centric Architecture

© 2008 October Research Corporation

Who Is Your Customer?

© 2008 October Research Corporation

Your Realtor® ‘Customer’

• Realtor® customer profile• Realtor® customer ‘lifetime value’

exercise• The gateway to your consumers!

Realtor® Profile

© 2008 October Research Corporation

Realtor Lifetime ValueTitle orders and premiums can be mined

from a Realtor’s:1. Personal production of real estate sales2. Personal ownership of real estate and

refinances3. Peer referrals: directing other Realtors

and consumers to your title company4. Realtor lifetime value can exceed $1M

Realtor® Lifetime Value Exercise

© 2008 October Research Corporation

Summary

• Customer Centricity can be your point of differentiation, your strategic imperative

• Customer centricity supports the need for transparency and full disclosure

• Customer centricity can increase revenues per customer

• Customer centricity can lead to loyal customers who send referrals

© 2008 October Research Corporation

To Learn More About Customer Centric Title Services

travis-wright@comcast.net281-217-2789