Leading Mortgage Lender

The largest retail mortgage lender on the web

Published on 26-Aug-2013

"With IBM Tealeaf CEM solutions, it is exponentially easier to understand customer behavior and uncover usability and site issues that can lead to, in all seriousness, millions of dollars in savings." - Director of website marketing, leading mortgage lender

Customer:
Leading Mortgage Lender

Industry:
Financial Markets

Deployment country:
United States

Solution:
EMM - Customer Experience Management, Smarter Commerce, Smarter Marketing

Overview

As the largest online retail mortgage lender in the United States, this company conducts 100 percent of its business via the online channel. With more than 15 public-facing websites supporting the business, the web serves as its primary touch point to millions of visitors a month.

Business need:
The previous web analytics solution did not provide deeper customer insights beyond high level reporting and metrics. The online mortgage lender needed a solution that could provide better visibility into the online channel to improve customer conversion, satisfaction and retention.

Solution:
The online mortgage lender adopted IBM Tealeaf CEM solutions, which combine the reporting capabilities of a web analytics solution with the ability to drill-down into the qualitative insights of real customer behavior. This allows the mortage lender to to quickly diagnose and fix the problems causing failed customer experiences.

Benefits:
Using IBM Tealeaf CEM solutions, the online mortgage lender is continually optimizing its site with outstanding business benefits, generating an additional $2M in revenue from a revamped mortgage rate calculator.

Case Study

As the largest online retail mortgage lender in the United States, this company conducts 100 percent of its business via the online channel. With more than 15 public-facing websites supporting the business, the web serves as its primary touch point to millions of visitors a month.

This online mortgage lender relies on IBM Tealeaf Customer Experience Management (CEM) solutions for unprecedented visibility into the online user experience for its retail mortgage website. Through the insights gleaned by using IBM Tealeaf CEM solutions, the lender has dramatically improved customer conversion, satisfaction and retention.

The online mortgage lender’s philosophy is to be as close to the customer as possible. This approach enables a better understanding of customer behavior and enhances their ability to provide highly targeted lending offers. These offers have fueled the online mortgage lender’s growth in becoming the largest online retail mortgage lender in the US.

To achieve and maintain this high standard, the mortgage lender takes online customer experience very seriously, particularly considering the online channel is responsible for 100 percent of company revenues. Further, given the critical importance of the online channel, the online mortgage lender has adopted a number of online tools to help optimize their business.

Challenges

Web analytics solutions have traditionally been the de facto solution for monitoring website health. But the online mortgage lender often struggled to gain deep customer insights beyond high level reporting and metrics. Because customers are surprisingly unpredictable in their online behavior, it is often difficult to identify all the obstacles that impede customer conversion. With web analytics solutions, it is virtually impossible to determine precisely why site conversion has dropped or why customers have behaved in a certain manner. What the online mortgage lender needed was a solution that could provide better visibility into the online channel, so that they could make more effective decisions to improve customer conversion, satisfaction and retention.

A better approach

To address the challenge, the online mortgage lender turned to IBM Tealeaf CEM solutions because they offer the reporting capabilities of a web analytics solution while also providing the ability to drill-down into the qualitative insights of real customer behavior. Now, instead of hypothesizing about peculiar site trends, the online mortgage lender leverages the unique replay ability of IBM Tealeaf CEM solutions (a page-by-page, browser-level recording of the actual customer experience) to quickly diagnose and fix the problems causing failed customer experiences. With IBM Tealeaf CEM solutions in place, the online mortgage lender is continually finding areas of their site to optimize with astounding business benefits.

Win 1 – Generated $2M in additional revenue from revamped mortgage rate calculator.

Problem

The online mortgage lender had a hunch that a group of online visitors were experiencing errors when using their mortgage rate calculator but they struggled to validate the problems using traditional analytics tools.

Solution

Using IBM Tealeaf CEM solutions, the online mortgage lender was able to detect that some visitors were inputting loan amounts that were too low to qualify them for a mortgage. In some cases, the loan amount was actually high enough to qualify, but the idiosyncratic use of things like commas and decimal points made the amount entered appear in the form field less than the actual amount (for example $100,000 entered was rendering as $10,000). Once the online mortgage lender discovered the root cause, they were able to use IBM Tealeaf CEM solutions to determine how often it was occurring, assign a total “lost-revenue” value to the error, and then build a more intuitive mortgage calculator that automatically corrected variations in form field inputs.

Benefit

Although the mortgage rate calculator glitch was only happening a few dozen times per day, over the course of a year, the lost opportunity was adding up. In fact, by fixing this particular issue with the help of IBM Tealeaf CEM solutions, the online mortgage lender was able to retain almost $2 million a year in otherwise lost revenue.

Win 2 – Eight percent increase in mortgage application conversion rate.

Problem

The online mortgage lender’s customer-facing website was plagued by a number of application issues that created a substantial barrier to conversion. Over time, small (or unknown) site issues were eroding the customer experience and negatively impacting revenue. Further, as thesite scaled in traffic volume, the more these issues could negatively affect the business. In order to remove impediments to conversion and improve customer satisfaction and retention, the online mortgage lender needed a solution that would provide clear visibility into the online customer experience.

Solution

Using the unique replay ability of IBM Tealeaf CEM solutions, the online mortgage lender is now able to gain the actionable insights it needs to optimize their online customer experience. For example, after analyzing customer sessions using IBM Tealeaf CEM solutions, the online mortgage lender noticed a disturbing trend. Customers often struggled to complete their mortgage application because they simply did not understand the instructions. Unbeknownst to them, the online mortgage lender was actually impeding the process, by having confusing messaging that lacked a “human touch”. After seeing so many customers falter, they rewrote the instructions and conversion improved substantially as a result.

Benefit
Although the changes made were small, the results were big – the online mortgage lender increased conversion of their mortgage application by nearly eight percent. This increase generated $500,000 in otherwise lost revenue per year – and a more user-friendly experience for their customers.

Win 3 – Tealeaf movie nights help identify and proritize site improvements.

Problem

Unknown site flaws quietly degrade customer experience over time, causing frustrated customers and lost revenue. The reality is, until you see the actual online experience through your customers’ eyes, it is difficult to obtain an accurate picture of the many obstacles they encounter on the site. The online mortgage lender knew these types of issues existed but struggled to identify and resolve them.

Solution

Once a week, the online mortgage lender’s marketing, IT and e-business teams get together for a meeting called Tealeaf movie nights. Leveraging the replay capability of IBM Tealeaf CEM solutions, they use these meetings to review actual online customer sessions to identify site flaws and uncover usability issues in order to prioritize site improvements. This approach enables cross-organization visibility into how customers use the site and helps determine where to focus improvement efforts for site enhancements.

Benefit

Tealeaf movie nights have helped the online mortgage lender unearth a number of hidden usability and site issues that would have otherwise gone unnoticed. Based on key insights gleaned by using IBM Tealeaf CEM solutions, the company has created a more user-friendly site which, in turn, has improved customer satisfaction and retention.


About IBM Enterprise Marketing Management

The IBM Enterprise Marketing Management (EMM) Suite is an end-to-end, integrated set of capabilities designed exclusively for the needs of marketing organizations. Integrating and streamlining all aspects of marketing, IBM’s EMM Suite empowers organizations and individuals to turn their passion for marketing into valuable customer relationships and more profitable, efficient, timely, and measurable business outcomes.

Delivered on premises or in the Cloud, the IBM EMM Suite of software solutions gives marketers the tools and insight they need to create individual customer value at every touch. The IBM EMM Suite helps marketers to understand customer wants and needs and leverage that understanding to engage buyers in highly relevant, interactive dialogs across digital, social, and traditional marketing channels.

Designed to address the specific needs of particular marketing and merchandising users, the IBM EMM Suite is comprised of five individual solutions. Digital Marketing Optimization enables digital marketers to orchestrate relevant digital interactions to attract and retain new visitors and grow revenue throughout the customer’s lifecycle. With Customer Experience Optimization eCommerce professionals can turn visitors into repeat customers and loyal advocates by improving the digital experience of every customer. With Cross-Channel Marketing Optimization customer relationship marketers can engage customers in a one-to-one dialogue across channels to grow revenue throughout the customer’s lifecycle. Price, Promotion and Product Mix Optimization allows merchandisers and sales planners to make price, promotion and product mix decisions that maximize profit and inventory utilization. And with Marketing Performance Optimization, marketing leaders, planners and decision-makers can model and assess mix, and manage marketing operations to maximize ROI.

Over 2,500 organizations around the world use IBM EMM solutions to help manage the pressures of increasing marketing complexity while delivering improved revenue and measurable results. IBM’s time-tested and comprehensive offerings are giving companies such as Dannon, E*TRADE, ING, Orvis, PETCO, Telefonica | Vivo, United Airlines and wehkamp.nl the power and flexibility required to provide their customers and prospects with what they expect today – a more consistent and relevant experience across all channels.

Products and services used

IBM products and services that were used in this case study.

Software:
Tealeaf CX, Tealeaf cxImpact, Tealeaf cxConnect for Web Analytics

Legal Information

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