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With Millennials now overtaking Baby Boomers as the predominant adult generation – ensuring you have a customer acquisition strategy that exists online is key, says Joust’s chief revenue officer, Anny Le Wilson.
In today’s world, e-commerce has become so ubiquitous that most people shop online for everything from shoes to a home loan. According to IBISWorld, the market size of the online shopping industry in Australia has grown 19.6 per cent per year on average between 2017 and 2022, with 90 per cent of people shopping online.
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The pandemic has created a situation where the majority of Aussies are now accustomed to the benefits of digital connectivity to get business done. Instead of jumping in your car and driving to see a customer, potentially taking hours out of your day, you can meet one or two customers in an hour virtually, and still be home to see your kids when they get home from school. It’s a no-brainer.
Consumers and businesses alike are increasingly doing more online because it’s working for them, but brokers have been slow to catch up to this new model of living and working. Simply, most haven’t quite made the shift yet to digital customer acquisition strategies.
This is a concern. Google Research shows that nine in 10 Australians do all of their research online when it comes to refinancing. Yet research conducted by Joust in 2021 showed that over 32 per cent of Australian brokers do not have a digital customer acquisition strategy, while more than one in three brokers also found it difficult to generate enough referral volume to support their business growth.
If we can learn anything from this data it is that thousands of Australian brokers are missing out on connecting with 90 per cent of refinancers when their intent is highest. This showed the absolute cruciality of a good digital customer acquisition strategy. Clever brokers know that a good digital customer acquisition plan is the key to their success.
In order to give your clients what they need, it’s more important than ever to understand the ever-changing needs of this new target market.
The latest ABS census found that Australia’s Millennial generation is overtaking Baby Boomers. This must be the new target market for brokers, a market full of people who know how to use a smart device, and who don’t want salespeople knocking on their door at 9.00am – or any time for that matter. They also expect to be able to transact digitally in all aspects of their lives. Digital strategies are no longer just nice-to-have, they are non-negotiable.
All of the above presents a significant opportunity for brokers, who are now writing 70 per cent of home loans. The other good news for brokers is that people are no longer overly concerned with getting their home loan from a big four bank, though of course you can get a loan from a big four bank through a broker if you desire.
Unlike previous generations, Millennials aren’t blindly loyal to brands and companies for significant portions of their lives. Rather, they are much more likely to make a purchase decision based purely on whoever can get them the best deal. If you consider the 70 per cent market share, couple this with the rise in digital connectivity, and consider the breadth of loan choices that the average broker can provide to savvy customers, this presents a lucrative opportunity to the brokerage industry.
This new financial year is the time for brokers to get educated on digital customer behaviour, crack down on lead generation, employ digital customer acquisition strategies and make the most of the power of the broker market and this opportunity so many brokers have in front of them.
Anny Le Wilson is chief revenue officer at home loans marketplace Joust. As CRO, Ms Le Wilson is charged with the sales and operations at Joust.
She has specialised in the banking and finance industry for over 18 years from early beginnings in managing a broker firm, to holding senior and executive roles in specialised growth markets such as Asian banking and third-party broker origination.
Her experience also extends to working with customers and businesses in various banking segments (personal, retail small business, business, professional services and corporate banking) across most of the major banks in Australia.
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