One of the main aims of any business, large or small, is to ensure that clients keep coming back for products, goods or services in order to establish some degree of long-term relationship.
I once read that it costs five times more to get a new client than to keep an existing one.
How this was substantiated, I don’t know, but there seems to be an element of reason behind it.
We all know the importance of keeping existing clients satisfied, but there are also the questions of do we really know what they want and how can we best meet these needs?
If these questions are not being asked on a regular basis, then existing clients will already have one foot out of the door.
Of course, there are times when it is difficult to do much beyond keeping the core business moving forward, but if it is not being properly taken care of, then it may well move to become the core business of a competitor.
In the modern mortgage market, these competitors can come in many different forms, including the ever-growing presence of the internet.
Attitudes to how we shop, search and compare have changed drastically over the past couple of decades.
It is difficult to ignore the online revolution when assessing such relationships. Google’s recent move to launch a UK comparison service for mortgages is the latest challenge for the intermediary market in a long line of comparison sites that have emerged in recent years.
However, it is the sheer size and weight behind this announcement that has made the intermediary market sit up and take notice.
Indeed, ‘to Google’ is now a recognised verb in the English language and this only goes to illustrate just how far we have come in terms of technological advances and how society has embraced the internet into their everyday lives.
The world of financial services has also changed dramatically over this period. The comparison site has grown into a massive multi-million pound industry across a number of financial sectors and beyond.
Yet, before getting too brow beaten by these comparison giants, it is important to underline that there will always be a need for advice relating to mortgages.
This has been illustrated by recent figures from the FSA and CML, which show that the level of business via intermediaries rose for first-time buyers and home movers in Q2 2011.
Research by Kensington has also found that increasing numbers of borrowers are seeking out professional mortgage advice for the first time.
This does not mean we can turn a blind eye to the internet, far from it.
Firms operating in the intermediary market have to realise what is happening around them and work with it rather than butting their heads against it.
Therefore, it is evident that intermediaries need to find a way to beat them at their own game.
A strong online proposition incorporating research tools, mortgage calculators and best buy tables can help, but inevitably it will be the quality of any service provided that is key.
As useful as some comparison sites may be, thanks to their lack of in depth information, this often only works to add another layer of confusion for many consumers.
It is time to really illustrate the quality and breath of service by ensuring that clients realise you possess more information than all these research methods put together.
This can be done in just one appointment.
Offering a robust, holistic advice process is a must so that an adviser offers real advice rather than just selling a mortgage.
This way, you become their adviser of choice rather than one that simply transacts a piece of business, which will really help to plant the seeds for a fruitful long-term client relationship
A robust post-sale process is integral in this process as, once a consumer becomes a client, this is just the beginning.
Let them compare holidays, prices of CDs and sports equipment, but let them know exactly how you can help when it comes to financial products and services.
Impose your expertise and use technology to diarise regular reviews, renewal reminders and produce a consistent flow of good communications and product expertise across a range of areas.
And make sure you find out an individuals preferred medium of communication to really make sure the message hits home.
It is also vital to be aware of any changes in clients’ circumstances, in terms of long- or short-term aspirations, their status i.e. divorces or growing families, redundancies, a new job, or even any health related issue.
Helping to fulfil a range of financial requirements, before any other party has a chance to do so, will inevitably cement relations and establish a bond of trust, but only when these are done effectively and efficiently.
Fortunately, being able to offer an extensive range of services does not necessarily mean having to be the master of all, as this can sometimes dilute the core product.
Establishing relationships with carefully selected specialist partners can help boost an offering through a mutually beneficial referral system and, again, technology can help with this.
Utilising such relationships means firms can continue to help clients through the referral process, therefore helping to sustain confidence in advisers’ ability. This again quashes the need to look elsewhere for any further advice, so minimising the risk of losing future business.
Knowledge is power and advice continues to be king.
This is why intermediaries are not giving up their throne to comparison sites or lenders operating on a direct to consumer basis.
However, it is clear that the intermediary market has to continue working harder than ever to do so.
