With customer retention and client ownership major topics within the industry, the trade organisation admitted it was pleased to see intermediaries taking steps to maintain relationships with clients.
However, 4 per cent of respondents to AMI’s August Mortgage Intermediary Census said they had no contact with their clients once the original mortgage deal had gone through.
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.”
AMI claimed the level of business received by intermediaries from existing clients showed the importance of maintaining a good relationship. 72 per cent claimed they received over half their business through existing customers and 44 per cent received over half from referrals.
However, Griffiths warned brokers to be more careful in making sure the client knows they will be contacted at a later date.
He explained: “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.”
Daniel Clayden, director of Clayden Associates, said: “It’s vitally important to retain clients as you are putting a lot of effort in to build up the business and you don’t want to see it disappear like a hole in a bucket. After all, it’s a lot easier to retain business than get new business.”
