More and more brokers are looking to cross-selling to even out the income bumps in the road, but there are key considerations, reports Jemima Codrington.
Video transcript below:
Jemima Codrington, Mortgage Broker News
Jemima Codrington: The times, they a-changing and the same can be said for needs of brokers’ clients. Hi, I’m Jemima Codrington and welcome to the Big Story on Mortgage Broker News. An increasing number of brokers are turning to selling additional products such as insurance. It’s a tactic that has many advantages including client retention.
Jon Sowerby, Verica TVH Financial
Jon Sowerby: I think cross selling increases client retention by just being able to provide more options to your clients. The number that I have seen quoted in the industry is, if you can place a client in three products or more, your potential to retain that client is 85% or greater. Clearly the more you can offer, the better off you are. But it is something you have to be careful about.
Jemima Codrington: While cross selling does have its benefits, brokers must be prepared to do their homework before choosing to sell additional products.
Bill Mitchell, The Mortgage Centre
Bill Mithcell: I think really what it comes down to is, just listening to what the clients needs are and what their goals are for the future and just invariably throughout that conversation, things come up and sometimes it leads to an opportunity for us as brokers to help them with additional products beyond immediate, initially what we thought they came in for. But sometimes it also leads to something where we can’t help them directly.
We are not a bank, so we don’t have all the different products that a bank can offer for example, you know credit card, car loan, that sort of thing. However, because as brokers it’s important for us to have contacts in the banking industry, it’s an opportunity for us to maybe refer to that client to a banker who can help them out and in the end it all comes back and the client is served and in the end the banker will in turn look out for the broker as well, when there is an opportunity to refer business to them. So it all works out in the end.