These steps can give agents and brokers an invaluable edge in the industry in 2023
For mortgage agents and brokers, building business by generating referrals and driving customer loyalty is a key component of scaling upwards – but what’s the best way to do that in 2023?
A seminar at the recent Canadian Mortgage Summit in Mississauga took attendees through some of the strategies they can use to gain new clients and engage with existing ones, with Magenta Capital Corporation’s vice president, mortgage solutions Greg Sinclair (pictured) emphasizing the importance of understanding what he described as the iceberg concept.
The tip of the iceberg is the most visible part – but it’s everything underneath that keeps the iceberg afloat. From a business perspective, the top part might entail a company logo, promotions, and advertising, while the unseen part is made up of operations and structure.
What clients ultimately want, Sinclair said, is authenticity. “They want to be able to trust. So if you are overpromising at the top of the iceberg and don’t have the capabilities underneath the waterline to meet it, you’re going to have a hard time maintaining the loyalty of these groups.”
When advertising a product or service, ensuring you have the processes in place to deliver on it is of paramount importance, he added.
“With millennials, they want to know that what you’re saying can be done and can be achieved, or if for whatever reason you can’t, [because] something’s come up, communicate with them, tell them, and be honest and upfront with them.”
What influences the buying choices of each consumer segment?
Millennials as a consumer segment are notable for their loyalty, Sinclair said, meaning that they can prove an excellent source of repeat business. Another noteworthy trait is the value they place on social proof – with 91% of millennials looking at Google reviews before making a purchase or committing to something, according to Sinclair.
“If you can deliver on the top of the iceberg and the bottom of the iceberg, your reviews should start coming in extremely positive,” he said. “And that’s going to be compounding for your customer base. You’re talking with another customer group, they go looking at your Google reviews: ‘four stars, five stars, four and a half stars… OK, I can trust this brand, I can trust the referrals that I’m hearing.’”
Generation X consumers (those born between the mid-1960s and 1980s) often do extensive research before making or committing to a purchase, Sinclair said, and want information to form their own conclusions. “They don’t want to just decide from what people have told them – they want to go and confirm it, understand it.”
Those consumers also usually appreciate timely responses or check-ins – for instance, a quick note with an update on how a deal is progressing or what its latest status is. Meanwhile, they may not use Google reviews to the same extent as millennials, but will still factor them into their decision, Sinclair said.
Canadian Mortgage Professional spoke with Jared Stanley, senior director of originations at Neighbourhood Holdings, to hear about how brokers and agents can lay the foundation for a successful 2023.https://t.co/XSJabscpLd
— Canadian Mortgage Professional Magazine (@CMPmagazine) December 22, 2022
The fundamentals to keep in mind
In summary, Sinclair said, brokers and agents need to segment, choose a market they’re targeting, and understand how to reach those consumers. “Where do they consume their media? You then need to figure out how you’re going to engage them. What problem do you solve for them? What interests them, what makes them tick and get in front of your brand and start considering you?”
Not clearly identifying a problem or challenge faced by a consumer segment – and not communicating the solution an agent or broker can provide – means that mortgage professionals are unlikely to convince a customer that theirs is the best service.
Last but certainly not least, then, is delivering on that promise: brokers and agents making sure they can meet the expectation they’re putting out in the marketplace.
“Conceptually, this might sound like you need a big marketing department to deliver on all of this – this is not the case,” Sinclair said. “It could be something as simple as putting out a blog once a week, or a LinkedIn post, or a Facebook post once a week. Make sure the content’s good – that would be the key part.”
What plan have you put in place to generate referrals and increase customer loyalty in 2023? Let us know in the comments section below.
