Part 3 - Creating additional opportunities by marketing new products publicly.
In Part 1 of this series we demonstrated how you can create additional opportunities from marketing new products direct to clients within your existing data base. Our real case study showed how a broker generated more than $20,000 in commissions just by marketing a new product to their existing data base of clients – 1 email, and the willingness to try something new.
In Part 2 we covered the “knock-on” benefits from marketing new products to your existing clients– new clients. The real case study we featured demonstrated how a broker made an additional $49,000.00 in commission from diversifying into construction finance.
In this final edition of our “Diversifying pays dividends” series, we focus on the benefits that can be generated by marketing new products publicly, possibly via your website, signwriting on your office, or through the use of social media. By advertising a broad product capability, you not only widen the net for potential customers based on asset or loan type, often you will increase the public perception of your business from being say a “home loan specialist”, to a “finance professional” able to cater for all loan scenarios
A broker located in Cairns, QLD had operated a successful mortgage broking business for 7 years, but had only ever handled “home loan” transactions, which was the only market he targeted in his advertising and marketing campaigns.
Whilst business had been steady, the broker had a desire to expand his business, after recognising the number of opportunities and leads they were passing directly to the banks and other brokers in the local area.
The broker approached La Trobe Financial around 18 months ago requesting our assistance in writing their first commercial transaction for a relative, in what proved to be the broker’s first move into offering a diversified product; until then, the broker would have referred this scenario directly to the local branch of one of the major banks.
The transaction completed smoothly, and the broker began advertising for more commercial finance transactions by having a professional sign writer paint their shopfront windows, and by adding posts to their Facebook page regularly. Over the next 12 months the broker had written commercial, construction, rural and SMSF finance, and began advertising for more of it.
The response was overwhelming. The broker is well-known in the local area and had built great trust with people in the community, the broker commenting “it was if people were waiting for someone in the area other than the major banks to offer alternative solutions to their commercial, construction, rural and SMSF finance needs”.
This broker has since employed an additional 2 loan writers to cater for the rapid uptick in settlement volumes which have increased from $52m in FY13; to $121m in FY14; and preliminary results for FY15 show they are on track to settle circa $160m.
A great result I’m sure you will agree and a fantastic story to conclude our series “Diversification pays dividends”.
We hope you have found this series beneficial, and hopefully it has provoked some thoughts regarding opportunities you might pursue in your business, as they exist right now and can quickly increase your bottom line.
Our sales and credit teams would love to hear from you to explore ways in which we can assist you in utilising what is one of the broadest range of products available in Australia – products that can take your business further, and are well suited to first time users. Please call your local Senior Manager Client Partnerships directly, or contact our credit team in 13 80 10.
Best of luck with your business.