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Then read this post from a fellow blogger. I don’t, for a second, believe that this is an isolated example.

If the firm in question — and I don’t care who it is, and I’m not going to mention it by name — had been forthcoming with the details, one of two scenarios would likely have happened. The woman would either have:

  1. Said “no” and not applied for the mortgage.
  2. Been astounded at how the firm educated her about the terms of the loan, sent in her application and closed on the loan faster than she would have otherwise, and not initiated an unneeded service interaction.

My bet is on scenario two.

This is a great example of a firm that missed an opportunity to create a story that loyal customers tell. Of course, it does depend on the type of customer you want. If you want those who never read the terms and conditions of contracts, and that you’ll likely make your profits from through penalties and fees, then maybe what the firm in the example did was the right thing.

But if you want customers who are going to require new financial services and products for years to come, then being less transparent is not a good strategy.

The firm’s rate and branding efforts helped get the woman in the door. But it missed an opportunity to close the sale — and potentially gain a loyal customer — by not differentiating the customer experience.

Technorati Tags: Banking, Marketing, Customer Loyalty, Customer Experience

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