This truly impressive figure has been calculated through significant research amongst intermediaries and careful analysis of the research findings.
To put a value on its binding online decisions GMAC-RFC quantified the value of the four key benefits that intermediaries identified from obtaining a binding decision. These were as follows:
More customers sign up on day one - £6,000
Approximately two hours of admin time was saved per case - £14,000
Freed up time leads to more sales - £6,000
More cases complete - £9,000
*Figures are based on an assumed £500 proc fee per case and 10 cases complete a month
Jeff Knight, Head of Marketing Services at GMAC-RFC commented: “We originally undertook this research to find out what intermediaries thought of our on-line system. We really wanted to know what benefits they were seeing from using the system day to day. The findings were amazingly positive and proved to us that our system is saving intermediaries’ time, reducing their paperwork and therefore allowing them to generate more sales.”
“Based on these findings and the assumed value of each case our on-line system is worth a huge £35,000 a year to those that regularly use it. In a more competitive market, intermediaries can simply not ignore this.” continued Knight.
Financial Benefits of a Binding Decision
More customers signing up on day one
A binding decision provides greater certainty so it reduces the number of clients who may seek alternative advice, which can happen when dealing with DIPs. Assuming just one extra client signs up every month this equates to £500 x 12 = £6000 p.a.
Two hours less administration per case
Receiving a binding decision reduces the number of telephone calls and paper chasing. Intermediaries said that they can save up to two hours per case. Assuming their time is worth £60 per hour, this equates to £60 x 2 hours x 10 cases x 12 months = £14,000 p.a. saving.
Freed up sales time:
With less time spent on administration intermediaries said they had more time to sell. From the findings it can be assumed that at least one extra sale can be generated a month, equating to £6000 p.a.
More cases completing:
GMAC-RFC has found that since launching its on-line system a year ago, approximately 15% more cases complete. Using this figure, an intermediary will see a 15% uplift in earnings. In simple terms, this works out at an extra £75 per case, so assuming 10 cases per month it works out at £9000 p.a.
Knight concluded: “We knew that we have one of the best on-line systems in the market in terms of functionality and user-friendliness. We now know that there is a very real and tangible benefit to the business of the intermediaries who use our system.”
