How to Build a Loyal Customer Base: Beyond Sales, Creating a Community
If You’re in Your Own Business, You Are in Sales — or You Won’t Stay in Business
by Michael Wallace
How many times have I heard an aspiring entrepreneur say, “I want to start my own business, but I don’t want to be a salesperson”? The reality is, if you’re in your own business, you’re in sales.
Some people dislike sales because it puts them out of their comfort zone. They associate it with convincing someone to buy something they may not need or want, purely for the salesperson’s benefit. This misguided, “used car salesman” stereotype — a dishonest person willing to do anything to close a deal — couldn’t be further from the reality of successful sales.
A true salesperson delivers value by offering a product or service that meets a real need, fulfills a desire, or solves a problem. When you genuinely believe in what you’re selling, it feels good because you’re helping people.
Building Relationships That Last
The best businesses have one thing in common: repeat customers. Loyal customers are the foundation of long-term success because they enable you to build lasting relationships.
Years ago, I was in the title insurance business on Long Island, New York. Our primary clients were real estate attorneys who ordered title insurance for their clients. Since title insurance rates are state-regulated, there wasn’t much room for price competition. Success came down to service: who could deliver the best experience and make the attorney’s job easier.
We constantly looked for ways to go above and beyond expectations. Over time, our clients began referring to us as “my title company,” not just a service provider but an integral part of their business. The best business-to-business relationships transcend transactions — they’re about becoming part of your client’s community.
What Do You Have to Offer?
As a consultant in the mortgage banking business, I’m often asked for help finding salespeople or loan officers with their own referral sources, or a “book of business.” While I’ve built a successful business with exceptional loan officers, these relationships take time to develop. The management and culture of a company are critical to making these relationships work.
When clients ask for my advice, I always ask, “What do you have to offer?” The answers are typically the same: great rates, products, technology, marketing, fast processing and underwriting. But that’s not enough. What sets your company apart? What will entice a successful loan officer to join you?
The answer is often timing — being in the right place when someone is ready to make a move. However, companies can’t rely solely on timing. That is why it is always good to be training and building your salesforce internally That also could be attractive to seasoned loan officers, because it might be of help to them in building their sales teams. Build a company with brand that people will respect and admire. A company that people will want to work for and with. That alone gives you a competitive edge.
Opportunities in Challenging Times
During these challenging times for the real estate and mortgage industries — marked by higher interest rates and low housing inventory — I’ve also seen an increase in interest in mergers and acquisitions (M&A) interest. Many companies struggle to cut costs enough to remain profitable, especially those without mortgage servicing portfolios.
Difficult times can create great opportunities. By combining forces, companies can scale operations, reduce expenses, and emerge stronger. The challenge lies in negotiating reasonably and being willing to compromise. Too often, people overvalue their own accomplishments while undervaluing those of others, leading to prolonged struggles or even forced exits.
Lessons from Great Companies
While my experiences have been on a smaller scale, the concept of building a loyal customer base and creating a community applies universally. Great companies like Apple and Amazon have mastered this on a global level.
Every great company starts small. You must decide what your community will look like before you can build it. What is your story? I’d love to hear it. Perhaps I can help you shape it into something even greater.
mjwallace@wallacerealestatesolutions.com
