Don't take your eye off the ball when it comes to product transfers
By Jeremy Duncombe, Managing Director of Accord Mortgages
Jeremy Duncombe, managing director of Accord Mortgages, considers how brokers can best support clients with product transfers and maximise opportunities for repeat business.
With stamp duty deadlines and then extensions, as well as new government schemes to support buyers with smaller deposits, on top of pent up demand and buyers looking to move more than ever post-pandemic, you’ll be hard pressed to find brokers short of new business this year. But what about existing clients?
When the housing market shut for a period of time last year, we saw increasing numbers of product transfers from brokers, but we hope it’s not the last of it. In the midst of this year’s largest mortgage maturity peak, brokers who have their eyes on existing business could reap the rewards – not only this year, but for many future years to come.
Get more for less
It’s said to cost up to four times more to attract new customers than it does to keep an existing one, and some studies claim the average repeat customer spends almost 70% more in their third year of the relationship with a business, than they do in the first six months. That’s why having a customer retention strategy can go a long way – building loyalty can take time, but it doesn’t need to be complicated or expensive – it just requires some planning. What you get in return though is invested customers who know your business and what you can help them with, and if you’ve earnt their trust and shown you’re one step ahead of them when it comes to what they may or may not need next, they’ll be much more likely to knock on your door for future support.
Don’t be late to the game
UK Finance have identified that the majority of product transfer business in previous years was on an advised basis. That’s excellent news for intermediaries and creates opportunities to once again prove how much value you can add.
You’ve nothing to lose and everything to gain for contacting customers for something in their best interest. And with people spinning many of life’s plates, a reminder will likely be welcome. Most lenders pay procuration fees on product transfers – at Accord we pay 0.30% - so not only do you have the opportunity to retain and build business for future interactions, there’s also a financial reward.
Add value when it’s needed most
With so many clients’ circumstances affected during the pandemic, I can only think this year that the product transfer business is there for the taking. Last year presented changing situations for many. Some will have more money than before thanks to minimal outgoings on commuting or spending, while others may have been affected by furlough, unemployment or ill health. Whatever their state of affairs, the fall-out of the last 12 months or more has caused uncertainty, and there’s an opportunity to demonstrate the value of advice in ways clients may not have considered.
Build future success now
New business will always seem more appealing, but it comes at a greater cost. Making your existing business work harder, for less, and delivering advice that’s perhaps never been more needed will undoubtedly keep clients returning.
During this maturity peak, make yourself indispensable to your existing client base. There’s a huge window of opportunity, and if you can capitalise, with thought and consideration for your clients’ needs, there’s every chance your business will grow in ways you may not have previously exploited.
Accord Growth Series
We’ve developed a wide range of free resources available to brokers as part of Accords’ Growth series. There are podcast, guides and blogs on the subject of customer retention too.
How Brokers Can Increase Customer Retention
Boosting Customer Retention with CRM
5 customer retention strategies for mortgage brokers
5 key steps to a robust client retention strategy
For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.