by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
MFAA Prosper : Mortgage and Finance Brief 12
30 | Mor tgage & Finance brief Business Sell the value, not just the discount The mystery shopper survey found that banks lead the way in offering fee or interest rate discounts. Some 89.7% of bank shoppers were offered discounts compared to 46.2% of broker and 15.4% of credit union shoppers. Inwood said brokers are offering the discount upfront on the loans. “They get the consumer the most appropriate loans and say ‘this is the best I can do for you’,” he says. He says brokers are not embedding the value of what they can do into the sales’ process, thus opening up an opportunity for banks. The customer goes to a bank and the bank tells them their headline rate, but then promises a discount if they stick with them. “They’re allowing the banks to have the last word,” Inwood says. “They (brokers) ought to be having the last word. It’s the last person you talk to who gets the deal.” Naylor says the attraction of brokers is they should or do have knowledge of deals and offers of banks. “Rather than presenting the nominal rate, they should be making the borrower aware they can access, through lenders, lower rates,” he says. 3 Act quickly! CoreData found that brokers are better than banks and credit unions at easily making appointments and are more helpful in general. Brokers are ranked highest at determining convenient times and locations for a meeting and also lead, when it comes to being on time, significantly outstripping credit unions and banks. But banks are better in terms of speed and efficiency of arranging the meeting. Inwood notes that, while 66.7% of mystery shoppers using brokers were able to book an appointment either immediately or less than one day after contacting the broker, there was room for improvement. Some 13.3% had to wait between three and five days, while 6.7% waited between five and nine days. More than 10% of shoppers had to wait 10 days or more. So around one-third of customers didn’t get meetings organised promptly. “Anything longer than three days is unacceptable,” Inwood says. “If you get the right person and speak to the right person and have the right conversation, the first appointment happens very quickly and is generally successful. But somehow if you get stuck in the system you don’t get called back. It points to people not really running a business in this space; they’re kind of taking orders.” Inwood says it’s about being better at calling back, better at taking messages and having better systems in place to make that happen rather than letting it become random. MFAA’s Naylor says part of the challenge for the broker channel is to continue to increase its 43% market share. “A key to making that higher is to get the consumer before they go to one of the other competitors,” he says. “That’s why it’s important to react very quickly to leads.” Follow up; follow up quickly; and follow up with phone calls Brokers, again, are relatively good at following up, according to the CoreData survey. More than 53% of broker meetings are followed up, compared to 51% for credit unions and 35.3% for banks. Brokers are also quite quick to follow up. Around 62.5% of brokers followed-up within two days of the first meeting. But some 25% were followed up only after five days. Naylor says there is definitely room for improvement here. “Most brokers these days have either invested in or have access to CRM systems. All those systems provide all the contact details. It’s about making sure you get the best out of your system.” One weakness – and therefore potential opportunity – is that brokers (50%) also prefer to follow up via email. Just 37.7% of brokers followed up with a phone call, while 75% of credit unions picked up the phone to connect after the first meeting. “It’s absolutely critical you don’t follow up by email,” Inwood says. “Emails are too easy to dismiss and too easy to discount, and people don’t take it as a genuine follow up.” “Borrowers do appreciate a personal contact rather than an email,” Naylor says. 1 2
Mortgage and Finance Brief 11
Mortgage and Finance Brief 13