Case Study
How NewDay USA’s Improved Customer Experience Increased Revenue by Millions Per Month
Overview:
NewDay USA has been a leader in Veteran mortgage lending for 20+ years.
Situation:
NewDay USA is a mortgage company serving veterans. Most of their Account Executives are recent college grads. Their typical customer is a Vietnam Veteran 78+ years old. Obviously, there is a disconnect between their account executives’ truly understanding their customer’s (Veterans) world.
A major issue was that 15% of their Veterans, who were already approved were for their loan were opting out before their loan closed every month. They called this VOO – Veterans Opting Out. Every 1% of VOO costs NewDay USA over $400,000 in monthly revenue—a huge problem.
NewDay’s account executives would say it was because the Veteran was finding cheaper rates at other mortgage companies.
Actions Taken
- We investigated why veterans were opting out. We found it was not because of lower rates; rather, the primary cause for VOO was a lack of consistent weekly communication and updates by the account executive. Once the veterans were approved for their loans, the account executive started focusing on new veterans in the sales pipeline who were not approved yet. As a result, we helped NewDay USA create systems that ensured every veteran was communicated with every 48 hours, keeping them engaged, providing certainty, and reducing their anxiety.
- NewDay sent several key leaders through our Customer Experience Executive Academy.
- Created and launched their Customer Experience Action statement, Pillars, Day in the Life of a Customer video, and Never & Always company-wide.
- Identified the service defects causing customer defection, improved their Operations Management processes, and strengthened their Service Recovery steps to assure clients they were a Zero Risk company to do business with.
- Introduced non-negotiable experiential standards to improve each client’s experience at every touchpoint significantly.
- Trained all their customer-facing employees on how to build stronger customer relationships that dramatically increased customer loyalty.
7. Created a ROX Dashboard (Return on Experience/KPIs) to hold all employees and leaders accountable for the success of this project.
Results
NewDay USA’s monthly VOO percentage went from 15% to 8% in a few months. That reduction of 7% meant an increase of over 2 million dollars in revenue each month with no additional expense for advertising & marketing.
John DiJulius talking about NewDay’s VOO reduction
https://www.youtube.com/watch?v=JCkg2GlyaqM
President Rob Posner talking about working with The DiJulius Group
https://www.youtube.com/watch?v=py902zG-BXg
Day in the life of a veteran
https://www.youtube.com/watch?v=sQETyBX_S38
