3 Ways to Retain Your Clients in a Fiercely Competitive Industry

Retain your clients

With the cost-of-living pressures surging, and fixed rate mortgages nearing their expiry date, a significant emphasis has been placed on client retention for mortgage brokers.

With many Australians looking to refinance their home loans, individuals are in great need for expert support to make the best financial decisions for their circumstances. And most are turning to mortgage brokers to meet this need.

The Mortgage and Finance Association of Australia (MFAA) has recently announced that mortgage broker market share has reached a new milestone for the March quarter, with mortgage brokers writing 69.6 per cent of all new residential home loans between January and March 2023. It is evident that mortgage brokers are helping home buyers to understand their options in a complex and dynamic economic environment.

With inflationary pressures, many increases to the cash rate, and the rising cost of living, clients are looking for the services brought by mortgage brokers in their ability to provide a reliable guide in this current nature.

Now, with many Australians coming off a fixed-rate cliff and rolling onto higher interest rates, the challenge for mortgage brokers is to ensure they hold onto their clients and maintain a high level of care during this time. How? Here are our 3 ways:

1) Long-Term Relationship Building

Client relationships should not be limited to the period of settlement. Neither should they be limited to the period of the fixed rate, or fixed rate cliff. As a mortgage broker, your main priority for each client is to focus on building long-term relationships.

Everyone’s needs evolve, and so does your clients’ over the lifetime of their loans. By demonstrating a long-term commitment to your clients’ success and acting as their trusted adviser, you can establish a strong foundation with them for continued collaboration.

How can you do this?

  1. Communication: regularly stay in touch with your clients via newsletters, social media, text messages, or even phone calls. Share relevant industry insights, updates, or news.
  2. Reliability: reliability is paramount in building trust. Be transparent with your clients, but also meet deadlines and deliver on promises. Build your clients’ confidence that they can rely on you to fulfill your obligations consistently.
  3. Celebrate milestones: acknowledge important milestones or achievements of your clients. For example, when a client has hit their one-year mark of their settlement date. Whether it’s through personalised messages, a small gift, or a phone call, showing genuine support and appreciation strengthens the bond and encourages long-term loyalty.

2) Proactive Communication

As a mortgage broker, staying ahead of the curve is essential; you want to know what is about to come before your clients do. Mortgage brokers should initiate regular and transparent communication with their clients well in advance of industry updates. In this situation, communication should be provided well before your clients’ fixed rate expiration, so that your clients can prepare and understand what is available to them during this period.

To further this, this allows you to explain the situation to them, discuss available options, and address any concerns that clients may have. Being proactive and keeping clients well informed demonstrates not only your professionalism, but your commitment to their interests and financial and property goals.

3) Market Analysis and Recommendations

Lastly, as a mortgage broker, you have the capacity to conduct a comprehensive market analysis to identify competitive rates and offerings. From this analysis, tailored recommendations can be provided.

Each of your clients have unique needs and preferences. By taking the time to understand your client’s requirements and offer customised solutions that align with their goals, you could be exploring the right alternative options when a client comes off a fixed-rate period. During your marketing analysis, exploring alternative options, structures, and solutions, shows that you are committed to the value that your clients receive from your service, and are committed to meeting their specific needs.

Client retention is crucial!

With current economic circumstances, the cost-of-living rising, and client circumstances changing significantly, mortgage brokers have a crucial role in ensuring their clients are continuously receiving the best outcomes for their situation.

Mortgage brokers should constantly improve their processes, focusing their energy on their business and building long-term relationships with clients.

Even in this highly competitive industry, it is still clear that Australians value the service that mortgage brokers provide, with a significant percentage of mortgage brokers writing residential home loans. It is times like this when your expert support is essential, to direct your clients to making the best decisions for their circumstances.

If you would like more information on how to retain your clients effectively, and maintain a higher level of care, contact Vision today. We help your business grow, and support you in running your business effectively to maximise your success in every possible way.  

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