Have you earned the right for a call back?

Posted by Mar15, 2015 Comments Comments Off
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You completed a refinance for your client, Mario 2 years ago with ANZ and he has a 1% interest rate discount. Mario runs into a friend at a BBQ. This friend tells Mario that CBA has given him a 1.20% discount for a smaller loan amount than Mario has. What do you expect Mario to do? What can you do that ensures Mario calls you before taking any action?

This blog isn’t about discounts and being rate-focused – because that’s a race to the bottom and I’m not interested in winning that race. This blog is about how to build strong relationships that are impenetrable by price competition from banks and other brokers.

A farmer starts by sowing seeds to grow his crop. He will spend many months caring for the crop – watering, feeding, etc. to help it grow into a dense and lush crop. Some day he will harvest the crop and enjoy the spoils – but until that day, the entire investment of time and money is in one direction – into the crop.

Client relationships are the same. You need to invest in them. Invest time and energy and sometimes money – even though, or especially when, there’s no immediate payoff. In fact the payoff might be many years away. When was the last time you called some clients just to check in and say hello? Give them a valuable resource or tool. I’m not talking about an annual review call (I.e. When you’re looking for an additional lending or refinance opportunities). I’m talking about a call with zero self-interest. Investing some of your timeā€¦ your most valuable asset. The best time to do this by the way is 3-6 months post settlement because the client will realise that you can’t expect there to be additional opportunities – they know you’re genuinely calling just to check in, out of care.

So if you have done the disciplined work of previously investing in your relationship with Mario, when he hears about higher discounts at CBA, you will be his first point of call. He’ll be guided by your advice, not necessarily by the lower rate. BUT, if you haven’t invested in the relationship, don’t blame Mario if he refinances to CBA without your involvement or knowledge. Why should Mario call you? You have never bothered to call him!

Our business is all about personal relationships. It always has been and always will be. That’s why Woolworths Money (in the news today… they are hiring lending staff) is no threat to brokers that build relationships with their clients. Nor are online lenders, banks and other brokers.

How much of your time each day is spent sowing the seeds for tomorrow as opposed to harvesting for today? This is the secret to building a super-strong broking business. Not rocket science but it takes a lot of discipline. Many brokers aren’t willing to do this hard work.

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