One of the great untold success stories of the mortgage market has been the role played by the humble business development manager (BDM).
Over the past couple of years the big stories to hit the mortgage press headlines have been regulation, technology and the increase in market competition. However, it could be argued that none of these factors have had quite the same effect on lenders’ bottom lines as BDM’s, who have transformed themselves from basic salespeople and brochure delivery people into true business consultants who are valued by intermediaries, distributors and, most highly, by their own employers.
Transformation
Interestingly the onset of regulation has almost certainly acted as a catalyst to this transformation process, as BDMs cannot any longer focus their efforts simply trying to incentivise brokers to place more business with their employer. To do so may transgress some important Financial Services Authority (FSA) regulations. Today BDMs have to go beyond a simple sales role and move more into the world of business consultancy, where their true role is to help brokers add value to their businesses.
The image of a BDM just a few years ago was of a salesperson having endless cups of tea and discussions about football with any brokers who were willing to give up half an hour of their time for a chat. A successful call was measured not in terms of increased business opportunities, but in terms of ‘relationship building’ – however that was measured. BDMs would dispense leaflets detailing the latest product offers, take details about the most recent problem applications and make hollow promises to try and get something done, but most importantly talk about where to go for holiday or which football team was about to be promoted to the Premiership. To show their employers that the visits were worthwhile, they periodically asked brokers how much mortgage business they were generating because market intelligence is always a sure-fire winner.
This may sound harsh, but I’m sure lots of intermediaries reading this article will relate to it. Today, however, I’m pleased to say that the image of BDMs has changed dramatically. The best are self-motivated, energetic go-getters who are hungry to make a success of their careers. The number of female BDM’s has also increased significantly and there is greater demand now for good BDM’s than ever before.
So what does the job entail, what qualities are required to become a BDM and what are lenders doing to attract and retain the best?
Not simply salespeople
BDMs are not simply salespeople in the traditional sense of the word. Mortgage products cannot be ‘sold’ to intermediaries as it’s not them who ultimately ‘buy’ the products. If you think about it, brokers can find out as much as they want to about any lenders products from sourcing systems and don’t need BDMs to act as glorified sales brochures. No, simply imparting information is no longer the name of the game.
The first, and perhaps most important role, of a BDM is to ensure brokers understand what type of applications are acceptable to their employer and to explain the differences between their lending criteria and those of their competitors. To say good product knowledge is essential is an understatement; BDM’s have to know not just about products but also about criteria and underwriting rules.
Different lenders go about this task in different ways but at Mortgages plc our view is that our BDM’s must be at least as knowledgeable as our underwriters, or they have no right to be talking to brokers. All of our BDMs are therefore required to sit and pass what we describe as our bronze underwriting module, which is the basic standard all underwriters with a mandate must achieve, and re-sit the exam every 12 months.
BDM’s are also put through a rigorous training programme as soon as they join us. We use a combination of external specialist sales trainers and knowledge and experience shared by our best performing BDM’s. External training companies are excellent at imparting sales theory, but can struggle when it comes to translating that theory into best practice in our specific market. That’s where there’s no substitute for experienced BDMs sharing their knowledge.
When BDM’s are ready to take control of a region we use an online sales management system called ‘Sales Track’ to monitor their performance and activities. This is not a ‘big brother’ scenario which gives us the equivalent of an electronic tag on a criminal. To be honest, if our main concern was ensuring our BDMs were not spending all their time in the pub, we would have bigger problems to address with our recruitment process. ‘Sales Track’ does, however, provide us with the management information to identify where our sales resources are being used most effectively. This type of analysis is indicative of the way in which the art of sales is now turning into a science.
Recruitment
Recruitment is clearly a key issue. There are certain key attributes that are essential in a good BDM. They must be self-motivated and eager to do well. If they are not driven individuals, they are going to struggle in a sales role. They must also be good communicators and outgoing, personable individuals. They also need to be intelligent. BDM’s have an immense amount of information to digest. As well as knowing products and underwriting criteria inside out, they also need to know how their employer’s proposition stacks-up against competitors’ and where strengths and weaknesses lie.
BDM’s also need to have an excellent working knowledge of online application systems, and should be able to show brokers how to use all the other sourcing systems e.g. Mortgage Brain and Trigold. BDMs must also be good problem solvers. Brokers don’t want help with clean cases, they want help with problem cases and that is where BDMs can really come into their own.
Recruiting multi-talented individuals presents an ongoing problem. Ideally lenders want people with a background in the industry, but staff recruited from competitors can often bring with them too much baggage – preconceived ideas about how things should be done. It may be better to get those with the right outlook and immerse them in your business – the good ones will pick it up quickly.
The problem, of course, is that high-flying BDMs are in big demand and employers will do everything possible to keep hold of them. It is not uncommon for employers to try to lock-in good performing salespeople with attractive incentive schemes. BDMs do move between lenders of course, and there are a number who seem to jump on and off the BDM merry-go-round with amazing regularity. The ‘Catch 22’ with BDMs is that the best are often impossible to recruit; those who can be easily recruited are often the sort you don’t want. Recruitment agencies can help, as the good ones understand who is available and willing to move.
During the past 12 months, Mortgages plc has introduced a trainee scheme to nurture the BDMs of the future. Candidates may have no previous sales experience, but as long as they have the right attributes they can be fast-tracked through a training programme to give them the knowledge and skills necessary to do the job. It’s still early days, but the scheme looks very promising.
Future
The role of BDMs is inevitably going to continue to evolve into far more of a business advisory role. BDM’s need to be able to help brokers add value to their businesses by increasing sales, opening-up new markets, increasing efficiencies and improving processes. If the results of a BDM’s activities make a contribution to a broker’s bottom line, they will be viewed as an essential business partner.
The market is becoming ever more competitive and, as a result, the role of good salespeople is more important now than it has ever been. Although technology will continue to dominate the trade press headlines, it will be still be salespeople who separate excellent service from the mediocre.
