Competing on interest rates to win new clients? Why? Here’s how not to…

I think we can learn some very valuable lessons from the retail industry (particularly apparel retail). You would have noticed lately that everything is on sale – 50% (or more) off is not uncommon. What is the retail industry teaching its customers? To never pay full retail price again! It’s a lazy strategy – to compete on price.

Price (interest rate) is rarely the most important thing to the client. If it was, there would be only one mortgage lender in Australia – the one with the lowest rate. I believe that 99% of prospects have 1 to 3 high value needs – a problem or need that they need a solution to. These high value needs aren’t price related (i.e. rates and fees). Your goal, as a credit (trusted) advisor, is to find out what the prospect’s high value needs are. You need to discover them as the prospect probably doesn’t even know what they are if asked outright. The best way to discover your prospects high value needs is to simply “ask great questions and listen”. The person that asks the questions is in control. You never learn anything while you are talking. The best way to influence people is to ask better questions. The best questions challenge prospects – get them thinking.

Let me ask you this: when you are in an appointment with a new prospect, who does most of the talking? If you are talking more than 20% of the time, you’re missing opportunities! Talk less, listen more and find the high value needs.

More about high value needs in my next blog…