New research confirms referrals are one of the most effective way for brokers to drive profit growth.
Practice Consulting’s 2012 Mortgage Broking Benchmarking Report found 68% of brokers attributed growth to referrals from existing clients, and 53% to referrals from formal partners.
Associate director Fiona Mackenzie said referrals would play an even bigger role in the future.
“The majority of brokers recognise the role that referrals play in supporting their business, which is an important first step towards maximising referral opportunities and realising the significant benefits that these opportunities can bring," she said.
Interestingly, the report also found considerable growth in the use of online tools for generating referrals.
Mackenzie said people are increasingly turning to background research online before deciding which broker to partner with.
“Leads from the internet have increased this year for larger businesses, by approximately one third, which suggests that these brokers are capitalising on the trend towards online research, and attracting clients through their own web presence.
“Having a credible and accessible online presence is critical as it helps to build confidence among clients,” she said.
It doesn’t have to be fancy, either – just “engaging and clearly articulating your offering,” said Mackenzie.