The census has revealed a positive approach from most members to maintaining ongoing client contact, with many firms having established strategies in place to keep clients updated and informed on the services they have available.
The research revealed 83 per cent of members have a contact strategy in place for going back to existing customers, while over 80 per cent of respondents would contact a client two months or more before the end of their special mortgage deal. Only 4 per cent said they would not contact their clients at all.
The importance of regular customer contact can be seen from the percentage of business coming from existing customers. 72 per cent of respondents said they receive over half of their business from existing customers, while 44 per cent said they receive over half of their business from referrals. 42 per cent said their firm is not dependant on gaining new business from new customers.
Rob Griffiths, associate director of AMI, commented: “It is pleasing to see member firms taking the business of ongoing customer contact seriously. AMI is of the opinion that the client is always the brokers’ client, but this does mean the firm must continue to service that client and provide regular updates and information. Without this regular contact the intermediary cannot have any claim on the customer.
“It is disappointing that only 43 per cent of firms send letters, brochures or other circulars to their existing client base on a regular basis. Firms should explore the regular provision of information as part of their customer retention strategy. They must also be aware of the rules around cold-calling. Firms cannot make unsolicited calls to customers unless there is an established existing customer relationship with the firm and the customer understands that the firm may therefore be contacting them to discuss their mortgage options.
“AMI will provide further information for members on dealing with retention business in a factsheet which will be available later this month.”
