Has your business got the X factor? It is not easy in financial services to stand out from the crowd, particularly if you are a smaller intermediary with limited resources in terms of marketing budget and employees. We’re well into 2007 now, and if your business projections are not hitting the target then now is the time to look at the reasons why. Forging a clear corporate identity and values matters, but too many intermediaries may be focused on internal issues and dealing with regulation. A successful business must go way beyond promoting the right image. It is about meeting customer expectations, being renouned for having a can-do attitude and providing a fast and efficient service.
So, how can this be achieved and where do the opportunities lie?
It is no surprise that I would say that the specialist lending market poses a great deal of scope for brokers to differentiate themselves.
Fundamentals in place
A growing number of people are set to need advice in this area. The oft-quoted figure from Datamonitor is that there will be some 9.42 million customers in the non-conforming market by 2010 – and if debt problems go unchecked, this could be a conservative estimate.
Beyond this, the buy-to-let market is booming and demand for self-certification is growing – the specialist market still has potential to grow and this is leading to huge potential for intermediaries.
The fundamentals to grow are in place. The property market continues to be strong and there is plenty of business out there – hence the proliferation of lead generation companies currently touting for your business. But, simply looking to buy-in new clients is not the answer.
Equally, while there are thousands of image consultants out there only to willing to relieve brokers of cash for logos, corporate colours and literature, this is not necessarily a practical solution.
Importance of online
One area where investment is invariably worth making is in a broker’s web presence. There are still many businesses out there missing out because they fail to show up on searches or their content is poorly organised. An effective website which is regularly updated is well worth spending on. Likewise, good back office systems mean better client management.
All businesses that are consumer-facing should have a website, but unless this is a major part of your distribution strategy, keep it simple. It also does not need to cost the earth, as an entry level website, where you can choose different templates and have your own domain name, can cost as little as £2 per month. It is also important to consider how you are going to keep the website updated, as it may be more cost effective updating it yourself by using a content management system. This will assist you in keeping an audit trail of changes, which is vital in the new regulated environment.
In terms of content for your website, include information about your business, what services you offer, mortgage calculators, an e-mail enquiry function and some listings of products – not including lender names. It is also worth considering using the e-mail function as a data collection tool for e-mail addresses for future communications. However, you must ensure you use the correct Data Protection Act wordings.
With all this functionality and content, it may be tempting to think your job is done. However, you have just started, as this medium requires constant attention and it is vital that information is updated regularly and any enquiries received are dealt with promptly. Management information tools can help you understand what parts of your website are being used and when and so the information you receive should form part of your regular website review, which will ensure your work is never over.
A website has to tell potential customers what the broker offers in easy to understand language. Despite recent attempts by the Financial Services Authority (FSA) to improve financial understanding, many consumers remain in the dark. This includes not remortgaging to obtain a better deal or even realising an existing lender may come up with a better offering to avoid losing the customer. They may well not be aware that specialist firms may take a more flexible lending approach.
It’s common for potential clients to think there are only around 10 high-street lenders, banks and building societies out there. They are unlikely to know that there are over 100 lenders in the UK and well in excess of 8,000 individual mortgage products. Whether it is options for buying with friends, stretching a mortgage over 40 years or larger loans beyond the standard sums offered by mainstream lenders, many just don’t know beyond the standard products aimed at a supposedly typical client – and many people now just don’t fit that mould.
Local presence
Take some time out to brainstorm ideas about your brand and positioning and see what can be done to improve it. Successful firms often have a strong local presence. You may want to develop links with local networking groups.
There could be scope to work with the local press providing informed comment in the property and personal finance sections and on consumer and business websites. Likewise, a growing number of firms are looking to work with other professionals such as solicitors and surveyors in either official or loose alliances. Many mortgage intermediaries are now prepared to work extended hours and prepared to visit clients in their homes and offices.
Good ideas are often borrowed – and all businesses are guilty of taking other firm’s concepts and improving on them. So, look at what is going on in the industry. Attend exhibitions such as Mortgage Business Expo, if you are struggling with compliance issues then look at membership issues. Trade body membership, such as the Association of Mortgage Intermediaries can also be a trusted source of business support.
None of this is rocket science, but it is surprising how many brokers are not coming up with the goods – and those that do genuinely stand out.
But, the main thrust of my piece is that if you are a smaller and generalist business, there is still only so much you can do yourself. You can tinker around the edges. But, if your budget is tight, it may not be possible to go for a major rebrand or to use the best consultants to run your web offering.
Marketing – a luxury?
Many brokers see marketing as a luxury, a ‘nice to do’ rather than a necessity. This appears to be especially prevalent in small to medium-sized firms, as they may not have a dedicated marketing team or person and probably only see marketing as advertising in the local paper.
A good starting point is to look at your corporate image and see whether your current brand accurately reflects your business. Consumers are very brand aware and so if you have no brand, or one that appears dated, it will disadvantage you. You should also review all office displays, posters, signage and even the appearance of your office. Marketing is not just about brochures, adverts and websites – it should encompass all outward-facing areas of your firm. Review all the literature you issue, as again, the quality of this will reflect on your business.
You will often hear marketing people refer to their ‘marketing mix’. For intermediaries who are consumer-facing, the main elements of your mix would be:
c PR;
c Advertising;
c Website;
c Direct mail, including e-mail;
c Maildrops;
c Local events.
All of these elements are important, but should not be undertaken individually. Good marketing is primarily about the co-ordination of activities to achieve a pre-determined aim and so it is vital that you set goals and targets plus, that any marketing activity is supported by all other areas of the business. By developing a campaign plan to list your activities, it will help any internal communication you will need to do prior to your launch, plus it will also help you keep on track as the campaign develops.
A great deal of thought needs to be given to position your firm to make you stand out, but hopefully this article will provide some clarity and ideas. I wish you all luck.
