Technology should be used to manage existing clients, says Richard Adams, managing director of Stonebridge Group
A few years ago, pre-credit crunch, when the mortgage market was at the height of its ‘boom’ I asked one advisory colleague how he went about securing clients. I was interested in the marketing mix his business used as at the time they appeared to be doing particularly well for themselves. Assuming the answer would encompass a range of initiatives I was somewhat shocked to hear that the business effectively used one tool – a ‘sandwich board’ situated outside their high-street office detailing the services they offered.
And that was all they needed. Demand for mortgage products was so high at the time that the walk-past ‘trade’ alone was enough to deliver them sufficient business. Needless to say, things have changed considerably in the mortgage advice space, and I would hazard a guess that the particular business in question is a) using a slightly more sophisticated range of marketing initiatives, or b) no longer trading.
Which is not to say that the ‘sandwich board’ doesn’t work or doesn’t bring them new clients, but the point is that today’s advisory practice does need to utilise a whole host of marketing opportunities in order to compete, secure new business, make the most of them and their existing client base, and develop their services and propositions in order to gain referrals and access new product sectors.
Marketing effectively is all about the ‘mix’, simply because relying on just one method of securing business is fraught with potential risk. The ‘all eggs in one basket approach’ is going to fail at some point and without a back-up plan the problems will soon mount. So, for example, while buying mortgage leads may be the new business generator that’s performing best at present, it is also important to advertise, to develop relationships with potential introducers, to secure corporate contracts, to use social media and public relations, etc. All this activity adds to the profile of the firm and puts it in front of as many different audiences as possible.
A major focus of any marketing activity however should be on the firm’s existing clients. We all know that every single individual who has been advised on their mortgage affairs by the firm will also have a range of further financial services product needs that could be serviced the major question is how to be aware of this and how to make sure the client knows you can help not just with the mortgage but all the other wants they have.
The answer, as in so many areas, lies in technology and having in place a system that allows you to do all of the above and so much more. All firms will have a client database but, for example, with the system we provide our AR firms – Revolution – the whole point is to allow them the opportunity to use this data in a truly interactive and unique way. For instance, the system takes the adviser through the whole process, from what might be the initial lead generation onto the advice and sale itself, and then on again to business processing and ongoing customer retention.
Firms should certainly view this technology as much more than a holding store for data and a means to prove compliance. Systems such as ours can effectively act as the customer interface allowing the client to log-in and track the progress of their case, whilst at the same time flagging up those products where perhaps the client isn’t covered, be it protection or insurances. It is a tremendous tool to use in aiding client loyalty it keeps the client coming back to the firm so they can see where they are in the process and they can be prompted in terms of financial services product gaps.
Given that the larger lenders are particularly focused on client retention – and have been for some time – this is an important part of an adviser’s armoury that actively allows them to compete with the so-called ‘big boys’. For example, you can guarantee lenders will be in regular contact with a client, particularly towards the end of any mortgage special deal. Constant communication on the broker’s part is therefore vital if they do not want to see their client go down the direct route. If the client has been in regular contact with the advisory firm through regular communications – perhaps tailored newsletters, e-shots, etc – plus they have been actively logging-in to the firm’s client site for updated information, then the chances of them choosing another route for their advice is slimmed down considerably.
All in all, firms must make sure they have the requisite technology which allows them to best use this most vital of data. As we all know, new clients are far more difficult, time intensive and costly to source than dealing with existing clients. Plus you are far more likely to receive strong referrals from those who already use and trust your services. Having that information to hand and being able to manipulate it, plus offering your existing clients a unique ongoing service which keeps them in regular contact with you, is a real bonus to any firm. It could make all the difference in a marketplace which is still not where we would wish it to be we’re not suggesting it will make the sandwich board or any other client activity redundant however it is certainly another string to the marketing bow.
