"A growing family unit, a change to income are just two examples that may determine a shift in the type of service the customer requires in the future."
Through our relationship with our sister company Just Mortgages, I was fortunate enough to host breakout sessions at their recent Lender Fayre in Birmingham. Across the two days, I was able to speak with hundreds of employed and self-employed brokers about how they remain valuable to their customers.
This is an important question for all brokers to answer, especially in the current climate. Not only should brokers be looking at new ways to increase their own bottom line, but to remain as much of an asset as possible to the client. The mortgage space has been steadily increasing in headcount over the last 10 years, and within an ever more cluttered space, how are you going to ensure that you stand out from the pack, and why should your customer return to you?
Understanding customers
Delivering value all starts with understanding customers better. The customer is becoming much more sophisticated within their marketing preferences. Gone are the days of simply pushing out the same messaging, product and service to everyone. We capture so much data on our customers, yet often fail to use this. If we can understand them better and gain a deeper knowledge of their circumstances, we can make sure we are accurately serving their needs and offering services of relevance to their circumstances. In doing so we may in turn become more relevant to our customer.
The fact find is such an essential tool, allowing us to identify other needs outside of the mortgage channel. We also gather greater information about their fears, concerns, plans and future ambitions. It’s so important to document this as it’s these small things that will help you better serve you customers future needs and widen opportunities for you. Does the customer require pension advice? How can you help support them with this?
It’s also a good opportunity to identify what type of service they require. Some customers prioritise speed or price, while others want the convenience of not having to shop around and prefer multiple solutions available under one roof. These priorities also change as clients age. A growing family unit, a change to income are just two examples that may determine a shift in the type of service the customer requires in the future.
So with the knowledge we have we can now segment clients better and make our proposition bespoke to different client groups, or tribes. If our client returns in a few years for that remortgage, they may want something different and fall into a new tribe of customer. Segmenting means we can tailor our services to each tribe, with the end result being a hyper-personalisation of services rather than a ‘sheep-dip’ mentality.
Widening the proposition
At Just Wealth, we’ve worked hard to strengthen the relationship between our financial advisers and Just Mortgages’ vast network of brokers. The result is more than one thousand referrals delivered to our advisers last year, with lead numbers already challenging 2022 figures. This is great news for all parties, especially those proactive brokers that deliver their clients a much greater, broader service.
The more services we can offer to our clients under the one roof, the greater control we have. While mortgage, protection and buildings and contents may be our toolkit, some clients may see their solicitor as more relevant if they also provide a greater advice proposition with pensions and wills for example. Competition comes from all angles but thankfully, the proposition offered by Just Wealth, Just Mortgages and the wider Spicerhaart group is strong enough to capture the entire family group. It’s up to brokers to maximise this and promote it to their clients.
Wealth advice not just for the ‘rich’
Often customers assume that wider financial advice is only for those with huge investments and six figure salaries. In reality, our advisers have deep conversations with clients of all backgrounds about supporting their longer-term financial goals. For example, we see many individuals who may have moved jobs a few times and have lost track or are confused as to how their future pensions and future retirement will look.
A large proportion of our clients have set half yearly or yearly reviews of their financial plan to make sure we’re meeting their objectives. This also helps ensure that our clients are wedded to us and not the competition. The annual review also supports the mortgage business, recognising the end of a mortgage term and looping clients back to their mortgage broker.
Rather than working in a mortgage and protection silo, all the Just Mortgages brokers have the opportunity to widen their proposition through wealth advice. Not only does this eliminate the crowd of other people wanting that business, it generates additional revenue and ensures brokers remain relevant and valuable to the client.
