Relationships ‘keep clients loyal’

by Caroline Dann25 Sep 2012

Two industry figures have argued borrowers are still loyal to their brokers, provided they focus on relationships and not ‘transactions’.

Last week, analyst Max Franchitto told Australian Broker Online waning loyalty, to both the banks and the broker, was at risk of increasing.
Aggregator Ballast’s CEO, Frank Paratore, said while disloyalty was an issue for “transactional-based brokers” it was in fact increasing for those fostering strong relationship ties with their clients.
“We are finding this is the case due to relationship-based brokers demonstrating stronger marketing and CRM activity, coupled with integration of other greater financial services as opposed to transactional brokers where clients can't even remember their name,” he told Australian Broker Online.
He also admitted diversifying the product offering was another tactic brokers could adopt to foster loyalty.
“Fact: the more 'related' services provided to the one customer, the less the likelihood that they leave,” he said.
Peter White, CEO of The Finance Brokers’ Association of Australia (FBAA) agreed with Ballast on relationships and diversification being crucial.
“Take the next step and add tangible value to the great service you already provide, and keep in regular touch with your client base,” he said.
“I don’t see any change in loyalties to brokers as the essence of today’s market was driven in the 90s and into 2000s by the consumer’s demand for greater service and greater product diversification, together with the opportunity of ‘a better deal’ whilst someone else did all the paperwork for you.”