In part one of this article, we discussed how we need to segment our customer databases based on their life states so as to tailor our message to what they need at their particular stage of life. The key is to having the ability to tailor our message to the customers' needs. This can be done in two ways: the buying cycle and demographics.

BUYING CYCLE: Every loan has a buying cycle. A three-year ARM, for example, typically ends in three years, and the customer will want an 8 percent interest rate will need to be refinanced when rates drop. By keeping this in mind, you can be sure to send your customers the right message at the right time. And that's the key to effective marketing.

Essentially, this means properly segmenting your customer base. But even the most basic of database programs allows you to do that. And if you're not yet into computers and databases, the tried-and -true method of file cards still can work. Simply make two index cards for each customer, on for type of loan and one for rate of the loan. A tickler file helps you keep loans by rate the minute rates drop below a certain point.

Of course, those who have more sophisticated database programs ca do even more. You can do searches by rate, date the loan come due, amount of loan, name of the real estate agent-the list is endless. And all of this helps you to create more targeted messages that reach your customers when they're most likely to be in need of your services.

DEMOGRAPHICS: We all know that the average first -time home buyer will move up to a new home within seven years. Smart marketers will start hitting them with new home messages between four and five years after their first loan closed. Smarter marketers will also mail to them regularly, addressing the many needs they will face over the course of those years, thus keeping their name in front of them all along.

Older customers who've been in a home for a long time are good prospects for refinances, for example, as well as for reverse mortgage products, if you offer them. Most adults tend to move into smaller homes, which is why they're called "empty nesters." It's great to give them information they need on moving down to a smaller home or getting a cash-out refinance.

Once again, even a basic database program will let you enter some simple background information that can help you keep track of your customer's age group or life stage. And again, even index cards can be used if you're not yet technology-savvy.

So the key to a good retention program, as stated before, is not only to keep your name in front of your previous customers, but also to send them the right message at the right time. This means making sure you only send them information that is relevant to them, anticipate their financing needs, and demonstrate that you value them and understand their lifestyles change.

The first step in implementing such a plan is developing a strategy. Even the smallest of companies can complete with the big guns when they strategize. So plan out your entire retention strategy and put it in writing. How are you going to segment your customer base? At what intervals are you going to contact them? Put together a calendar of mailings, or set up a grid of your contact stream. What ever you do, plan it all out ahead of time. Have your items ready to go, so your program works like clockwork. Begin with a "thank you" letter immediately after the closing and work from there. Remember the key to success-the right message, to the right person, at the right time.

When this kind of retention program is done properly, you'll find that almost any customer can be a "customer for life."