Interest rates may be dominating the news at the moment, but brokers should steer away from relying on an “interest rate approach” when it comes to generating leads and referrals, according to a leading finance marketer.
While attending open houses is a great way for brokers to generate qualified leads, when Linda Abela, client acquisition at Your Client Matters, was attending open houses recently, she noticed that many brokers were using this opportunity to talk to consumers about low interest rates.
But while low interest rates may be driving consumers to property, it isn’t the best way to start a conversation and stand out as a broker.
“Interest rates are something that consumers are getting excited about because they are so low, but consumers are also becoming savvier now as well,” Abela told Australian Broker
“Interest rates are all over the TV and many consumers are probably getting emails about it. But there is a lot of competition out there so brokers should be going in and being different to stand out, not just being another person talking to them about interest rates. Also, as brokers know, it is not necessarily the best interest rate which is going to be the right fit for each of their customers.”
Abela says the most successful way to start a conversation and generate interest has nothing to do with talking about business at all.
“…first of all, the consumer has never met you before in most instances, so you are a stranger. So, the first thing you should do if you are looking to grow your business and generate new leads is to establish a rapport and a connection in the first instance, not just launch in with what’s in for them.
“When you are a broker people are sharing some really private information with you and most people aren't going to tell you all their private information in the first conversation you have with them. You have got to build their trust.”
In saying that though, Abela says the biggest mistake is not giving it a go in the first place.
“The biggest mistake is not giving it a go. The best things about the brokers I did see were that they were willing to get out there and give it a shot,” she told Australian Broker
“They were a little bit misguided in the way they went about it, but I gave them kudos because they did put themselves out there, whereas so many others aren’t. In a competitive market, brokers need to be getting out there and at least giving it a go, and learning from their experiences.”