At the time of writing this article, I had just completed a two-day stint on the Mortgages plc stand at London Mortgage Expo.
What a show it was. From the moment you walked in the main entrance it was clear the mortgage industry had really gone to town and there were some very impressive stands on display. It was a stark contrast to the first Expo a few years ago, in which many stands had a somewhat homemade feel about them.
This year the exhibition stands – and I include stands both large and small – had been carefully thought out and presented a credible corporate environment in which companies could present their wares. The colours were vibrant, graphics were bold and easy to read and logos were displayed in ways that would have looked in place at a major motor show.
I know from personal experience that preparing and hosting such a stand is neither cheap nor easy. Marketing departments across the country will have been focused on Expo for months before the show opened its doors for business.
Because it’s worth it?
The obvious question is was it all worth it? Surprisingly, perhaps, that is a very difficult question to answer, certainly in pure financial terms. The reason is because it is simply not possible to directly link attendance at Expo to an increase in business volumes. Business may well go up in the weeks following the show, but was that a direct result of Expo, or ongoing marketing and sales activities? We do know how many brokers came to our stand and we can track business introduced by them in the future – but would we have got most of that business anyway? It’s almost impossible to say.
So why spend so much money attending a show, when it is so difficult to identify the financial benefits? A friend of mine works in the marine industry and his company attends four or five major boat shows each year and generates enough business – firm orders placed at shows – to keep the factory busy all year around. For him, the cost of attending exhibitions is easy to justify; he can identify to the penny the profit he generates as a result of attending major exhibitions.
Unfortunately, the mortgage industry is a different kettle of fish. Is it therefore a case of lenders attending Expo simply because they don’t want to be the odd one out? Or are there other reasons for lenders to attend? I’m pleased to say there are other very compelling reasons and they have to do with building brand values.
Building brand values
If you think about any financial services company, it doesn’t have a tangible product which it can promote. The product is an intangible money transaction which, let’s be honest, is not as exciting as buying a new yacht or driving home in a new Mercedes. However, persuading customers to buy our products, and brokers to recommend them, is not simply a case of having the cheapest rate. If that were true, only one firm would survive – the one with the cheapest deals.
Rate is important, but so is service and a whole host of other intangibles, such as the degree of trust, confidence, familiarity and desire the consumer has for the brand. Brand values are critically important in a service industry and no more so than in the financial sector. The largest lenders are very aware of their importance and invest heavily in their brands on an ongoing basis.
Brands are not just relevant to consumers, they are also important in a business-to-business context. Every broker can identify lenders he or she prefers to deal with and the reasons are not simply confined to rate, product and criteria. Brokers also deal with lenders because of their past experiences, service standards, quality of people and support and their expectations of what a particular lender will deliver in the future.
All of these factors are critical attributes of a brand. A brand is more than a badge or a company name – it should reflect the attributes of a business and should be a focus for customers’ feelings towards a company. Consumers don’t buy Apple iPods simply because they are great MP3 players. They buy Apple because they also relate to the emotional values which go with the brand. The same goes for all great brands, such as Aston Martin and Rolex.
Which brings me back to the Expo. The London Mortgage Business Expo was a great opportunity for lenders to strengthen their brand values and create a greater sense of affinity with their target market. Meeting brokers, discussing business, launching new products and renewing old acquaintances are all important aspects of brand building. Financial exhibitions are difficult, if not impossible to justify in pure financial terms but the long-term benefits are plain to see.
Events like Expo do generate business and I’ve no doubt some readers will be able to directly attribute business to their attendance at the show. However, for us, and most other lenders, Expo was an important element in the ongoing management of their corporate brands.
Branding is not relevant just to big lenders. It is equally as important to intermediaries. Take care of your brand and it will take care of you.
Julian Wells is head of marketing at Mortgages plc
