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Recently I highlighted the importance of mortgage brokers needing to know the lifetime value (LTV) of their customers in order to properly allocate their precious resources – time and capital.
It is, after all, the fundamental obligation of any business owner to ensure they maximise their return on investment (ROI), and this includes making sure they allocate their resources to where they can generate the greatest return. Or on the flip side, business owners need to ensure they are not under-investing in that part of their business where the greatest value can be harvested.
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While on average only 25 to 30 per cent of a customer’s LTV is generated to three months post-settlement, this presently commands up to 95 per cent of the resources of most mortgage broking businesses.
Today, this chronic misalignment in resource allocation is a systemic problem in almost every mortgage broking business in Australia.
At the core of LTV are the layers of value derived from repeat and referral business.
Both are easily dialled up with the implementation of a well-researched CRM program.
The cornerstone of any great CRM program is knowing what, when and how to send information to your customers that will build your personal brand value.
Contact optimisation ensures that each contact is both relevant and well received by your customers to specifically build brand value and increase the likelihood of repeat and referral business.
Fortunately, I am privy to some very valuable research about what mortgage broking customers actually want from their mortgage broker post settlement and, just as importantly, what they don’t want.
Think before you make that next anniversary phone call, email that next newsletter or perhaps handwrite that next birthday card – are you really adhering to the 10 golden rules of contact optimisation?
To learn more, I look forward to seeing you at my November seminar.
Click here to register.
Michael Russell, director, National Property Buyers and ALI Group
Michael Russell is currently a director of National Property Buyers and ALI Group which both work extensively with mortgage brokers. He has over 25 years’ experience in banking and finance, having been the former CEO of Mortgage Choice and Choice Aggregation Services, as well as holding management roles with ANZ and National Mutual Royal Bank.
