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Reduced loan volumes and broker commission cuts have reinforced the need for aggregators to have solid broker sales and marketing strategies, a recent Mortgage Business poll has revealed.
The average broker stands to lose around $13,000-14,000 a year in upfront income because of commission reductions, according to AFG.
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“Retention of customers in the current market is paramount,” said AFG general manager of sales and operations Mark Hewitt.
“By extending the average loan life by 10 per cent, generating three per cent more referrals and retaining an extra two customers per year, brokers should be able to recuperate that loss,” he said.
Simon Dehne, head of sales and marketing at Choice Aggregation Services, said it would be at least 18 months “before the market will return to anywhere near normalcy” and brokers should use the time wisely.
“It’s time for brokers to sit down and make a roadmap for how they are going to improve profitability,” he said.
Mr Dehne said it was essential to help brokers understand how to remain viable and survive the downturn.
Choice has recently launched a new initiative called ‘Get fit to go the distance’ to help brokers focus on the next 18 months and improve their sales and marketing strategies.
National Mortgage Brokers (NMB) meanwhile has recently developed a new CRM system to help its brokers better communicate with clients.
Sal Cinque, director of sales and marketing at NMB, said the system highlighted the importance of direct marketing strategies in slower markets.
”Brokers must view their client base as a valuable resource and focus on maintaining regular client contact,” he said.
NMB recommends its brokers make contact with customers at least four times a year, including making at least one phone call.
Straw poll
Where does your aggregator fall short?
Marketing support: 22%
Business coaching: 18%
Technology: 16%
Nowhere: 16%
Diversification: 13%
Lender panel: 11%
Compliance: 4%
