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Bill Rice is the CEO of Kaleidico, a leader in lead management systems. Prior to founding Kaleidico he was the VP of National Home Equity and the Home Loan Benefit program at Quicken Loans and one of the founding executives of DeepGreen Bank, an Internet-only bank that was one of the first and (at that time) largest buyers of LendingTree leads in early 2000.

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Are You Creating a Customer Army?

March 27th, 2008 • Related • Filed Under
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We live in unique times. We are increasingly connected to the Internet. That connection is increasing social. That social connectivity is community.

The question becomes are you still trying to gather customers and make sales? Or are you creating a Customer Loyalty Army?

Wired featured Legos’ community strategy back in 2006, but we are still trying to figure it out. Now Jake McKee is telling the back story on how he got Lego to catch the Cluetrain, a 10 year old manifesto about markets as conversations:

The challenge is that communities are hard to build and the formula doesn’t seem consistent. Consider this daunting statement for community builders from MicroPersuasions’ Steve Rubel:

Historically, online communities have perpetually come and go. The Internet Archive amber is littered with fossilized communities that once dominated, much the way the T-Rex roamed during the Mesozoic era. These include former stalwarts such as Angelfire, The Well, TheGlobe.com, GeoCities, Tripod and Friendster.

Just yesterday, Quicken Loans announced Qtopia a second community building offering to their clients (Quizzle.com launched late 2007 Feb 2008). I thought it was clever and innovative. It certainly went beyond the mundane of typical mortgage marketing, reflected in my commentary:

Stepping outside the mundane paradigm of email blasts, online newsletters, and birthday cards Qtopia creates, quite literally, a new world of possibilities for client loyalty and retention.

Others have given the effort less credit. I, naturally being curious about the lead market and where lead generation might head, couldn’t leave it there. I blasted out an email asking the opinion of some of the people I consider the most creative and innovative in the lead generation market. Here are some same replies:

“I don’t like it, I think it is foolishness…What customers have time to do this?”

“I like quizzle. I also like silly putty.”

“You ask the important question on your blog. Would you Qtopia? Personally, I wouldn’t. Why would I? I think it is a good try, but like every other virtual marketing effort, it won’t be around in 6 months.”

The responses were very consistent, but I think they all miss the point tremendously. (Sidebar: I think this is why the lead generation space hasn’t evolved much from the LowerMyBills model). Why? Here is the strategic subtly that is missed:

If you give consumers/customers a blank sheet of paper they take you on a wild goose chase of exotic features and “needs,” but will ultimately accept and use few of them. If you want to build useful user applications and communities give them examples, betas, and corral reefs to build from and feed your innovation.

My only constructive criticism, which ties back to the corral reef paradigm, is that I may have focused my resources on extending existing community platforms like Second Life, Twitter, Facebook. To make it a more fluid part of customers’ lifeflow. However, that being said, I think Quicken Loans is getting it right.

They seem to be following the primary social media themes for success:

  • Ask Customers
  • Use Trial and Error
  • Make a Plan

What do you think? Is Quicken Loans building a Customer Army or playing with Silly Putty?

There Are 2 Responses So Far. »

  1. Comment by PEK on 28 March 2008:

    But Bill, we’re in the mortgage business, and its 2008. What customers came up with this Qtopia idea? The customers I’ve been talking to want a solution to bait-and-switch mortgage low-ball pricing, and no surpises and the closing table. They want a way to refinance out of their upwardly adjusting ARM even though their LTV is now 105%. They want to be able to shop and apply online for mortgages and without feeling like shark-bait. Help solve these things, and folks will join your army.

    If QuickenLoans is worried about the fact that they’re doing a poor job retaining the customers they spent big bucks on to acquire, join the club. Strong past customer loyalty in the mortgage business has largely belonged to the great mortgage originators, independent of mortgage company where he or she currently works. I’m not sure if a virtual world membership will help. It will probably not hurt, as it at least represents - as you have suggested - a commitment by Quickenloans to investing in the long term best interest of their customers. But, is it their best? In light of the severity of the pain that folks have been feeling related to the mortgages they were sold, it seems to me not much more significant or noteable a gesture than an automatic holiday/ birthday card.

  2. Comment by Bill Rice on 28 March 2008:

    What better way not to feel like shark-bait and not get the bait-and-switch. Simply return to your mortgage company (assumption is you had a good and trust-based experience) and in a non-sales context be able to research, get updates, learn about the process, get custom reminders or alert.

    The challenge is that the problem you raise is very difficult to solve on a industry scale. Believe me the government and regulators are trying–I am not sure for better or worse. Generally, mortgage companies don’t seem inclined to universally self-police. So, the alternative? Possibly, one innovative company at a time, mortgage companies learn to build their own safe client communities.

    Maybe?

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