Magic moments: The little things that reel in referrals

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“That phone call is probably the best phone call a broker will ever make in their life. Clients don’t expect it, because most brokers don’t bother and they just think ‘Oh, next!’ That’s why I think it’s a really good thing to do because people really appreciate it.”

Something as simple as turning up prepared to the first client interview makes a huge difference, he says.

“The majority of brokers turn up at the house and say ‘Let’s see if we can make this work’, whereas the top brokers say ‘This is what I’ve prepared for you’. You’ve already got a half an hour head start on the other guy because you’re selling before you hit the front door."

When Heinrich worked as a broker he would arrive with all of the client’s documents organised in a folder labelled with their name and ‘My loan documents’, he says.

“You don’t even know if they’re going to get a loan or not, but it puts that positivity into it. I would stand at the door and say ‘I’ve got something really exciting to show you’. To be brutally honest I’ve never seen an exciting mortgage in my life, but the fact is that you can make the process exciting.”

Great brokers can implement a wide range of magic moments throughout the loan process, but the trick to making sure it doesn’t come across as a sales gimmick is to only use those that are comfortable and easy for you, says Heinrich.

“You shouldn’t do it if it’s not a natural thing. It has to be a natural for you, it shouldn’t cost a lot of money and it should be something that’s quite easy to arrange, but it has to be what suits you and what suits your personality. Some people can get away with things and some people can’t.”

Magic moments not only help you stand out from the crowd and get the referrals streaming in, they also make sure you keep your clients sticky, he says.

“The reality is a huge number of people use a different broker the second time around, and the really sad part is that they were disappointed with that first broker. If you’re an outstanding broker on the first occasion and the clients remember you, you’ve got a client for life – and that’s what we’re trying to do.”
 

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  • Ron Butler on 2014-08-28 2:47:14 PM

    There are some pleasant ideas here like the flower delivery and calling the client 6 weeks after they move in but I do have to wonder if the Australian Mortgage Brokerage industry is operating in the bronze age.

    In North America the trend is towards web based financial transactions that deliver lower rates and fees which can only be achieved through higher levels of efficiency. I don't think driving to every client's house to sign them up is the future of North American mortgage distribution.

  • Jake Abramowicz on 2014-08-28 5:39:39 PM

    No, of course you don't, because your business heavily relies on volume and buy-downs. Minimal commission, max volume, huge advertising budget, low salaried-non-commission staff. But not everyone wants to operate that way and actually meeting your clients face-to-face to establish a relationship can and does work. Not every single client, mind you, but many. Not to mention, at least I know (or can reasonably prove) I did what I had to do to prevent fraud and I KNOW MY CLIENT vs just chatting with them over email and getting everything via fax.

  • Ron Butler on 2014-08-28 6:01:08 PM

    @ Jake, I will put our delinquency rates up against any other broker with all my lenders. We have high level anti-fraud systems, the thing about salaried employees is that if the job calls for Google checking of every single name and every single employer they HAVE to do it, it's not voluntary. Purviews reports on all properties and full Registry searches if there is the slightest question, we spend money on anti-fraud not just lip service. Sorry Jake, but you have trotted out the FRAUD !!!! tactic for well over a year,we have more lenders than we ever had and they all clamour for more volume from us so maybe it's time to drop the "know your client" rant.

  • Jake Abramowicz on 2014-08-28 6:53:01 PM

    It's not time to drop the rant but it's not directed at you. It wasn't you that made us take that joke of a relicencing course, it was FSCO, with a heavy emphasis on "know your client". So it rubs me the wrong way that lending can happen over email without any personal visits, while here I am plugging in multiple choice answers to a quiz about whether I knew if Sally from the Valley should take a 5 year fixed rate. Who is to say you or I know someone better or worse?

    Good for you that you do the google stuff blah blah, but let's not get so defensive Ron. I don't say you commit it, I just say it's very easy to fake an online personna, ID, etc., these days and we all need to be diligent about it (as well as about 100s of other things). Fraudsters do fraud because it's the quickest way of making a big buck if they get away with it so they keep up with technology (and then some) and so we're all on our toes of course to watch out for it.

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