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14 | Leads
Leads are now available across the whole
spectrum of mortgages, loans, and other
It is rare for someone to wake up and
financial products, including debt management,
life assurance, critical illness, income protection,
accident, sickness and unemployment and
think “I know, I must buy some life
private medical insurance.
Some leads, or rather, the consumer asking for
advice which comprises the lead, will know what assurance today”, more usually it is
they want and will want to take out a product
instantly, only asking for advice to back up the
information they have found for themselves. triggered by a life event: someone
But not everyone asking for advice now is
ready to change their mortgage or take out a new
financial product at the moment of enquiry.
they know has died; they have just had
This can be frustrating for some lead buyers, but
it can be worked to your advantage.
a child or they could be setting up as
Understanding the customer
The key to using leads to establish a pipeline of
business is to understand a little bit about
self employed
consumer’s buying habits and use it to your
advantage to build up a portfolio of different of business, medium term is three to six months Of course if your first time buyer is short of a
prospective clients with different needs and down the line. These are now most likely to be deposit you may also have access to their parents
different buying cycles, ensuring you have a full your remortgage customers; the cautious people and grandparents, who may well remortgage
diary of valid cases to work. who are looking for advice early because they are their own homes or enter equity release through
coming to the end of their tie in period but are you, in order to help their offspring to get on the
Quick wins unsure about what the market is doing and how property ladder.
The clients you are likely to do business with that is going to affect them.
immediately is changing. It used to be that It is definitely worth speaking to remortgagors Strategic buying for greater
remortgage clients would look for advice just a when they first ask for advice, because if they are return on investment
month or two before the end of their tie-in not talking to you, they are likely to be talking to By thinking of leads strategically you can
period, but since the credit crunch this has one of your competitors. Most remortgagors are purchase different leads with an assortment of
lengthened. uncertain at the moment, they want someone to different potential clients to maximise your
More instant business is likely to be from give them a bit of TLC, help put their mind at return on investment. This example shows
people looking for life assurance or income ease and guide them through the process. If you how, even with a very conservative average case
protection. It is rare for someone to wake up help them when they are first uncertain and size and a moderate conversion rate, strategic
and think “I know, I must buy some life build up a relationship with them, by the time buying not only lines up longer term business
assurance today”, more usually it is triggered by a they are ready to do business it is most likely to but yields a greater return.
life event: someone they know has died; they be you that they actually do business with – and If you currently buy 50 remortgage leads per
have just had a child or they could be setting up in the mean time there may be other things that month (approximately £1000 per month) over
as self employed so the very fact they made an you can look after for them, such as their general the next 3 -4 months you should easily see a
enquiry means they are a more motivated buyer. insurance or life assurance needs - and you can return of £5000, with cross selling, even if you
These events are likely to mean two things: still get referrals. only convert one lead in ten.
1. They have thought about a protection product Alternatively you could buy a mix of leads:
for some time beforehand, have recognised the Longer term - 30 First Time Buyers at £5 each;
need and now are ready to buy; and Your longer term clients, those who need advice, - 10 remortgage at £20 each;
2. They are likely to need advice on other but may not transact any business for more than - 10 purchase at £10 each and:
financial products as well, to help them cater six months, are likely to be your first time buyers. - 20 life assurance leads at £25 each
for their changing life circumstances. They want to get on the housing ladder, but may The initial cost is the same and the return
Therefore your protection client is likely to be unsure as to how to go about it, what deposit in the first 3 months is likely to be similar
cater for your need for immediate business but they need and what sort of mortgage they can thanks to the quicker conversion of the
also, with a thorough fact find, can provide you get. This can be a long process, especially when protection prospects; however, despite – or
with some ongoing business as well. you consider the likely chain ahead of them. rather, because of - the different conversion
While there will still be some people who want However, although it’s an unusual way to look times and conversion rates on different
to remortgage immediately, your most at it, first time buyers could end up being your products, you are likely to earn an additional
immediate mortgage clients are likely to be those most profitable clients over the long term. £4000 in months four to six which makes for a
looking for debt consolidation or debt Typically you are catching a first time buyer right total expected return of £9000 from a £1000
management help. These people are likely to have at the beginning of their financial life, so investment.
realised that their debts are becoming although the first mortgage may take some time As you can see, not only are you earning a
unsustainable and they need to do something in coming, the potential for you then to sell greater return on the amount you’ve spent on
now to take control of their situation. general insurance and life products, and, if you getting new business, but you are no longer
do it right the first time, to look after them every reliant on only one business type and you have
Medium term time they remortgage or move house, could given yourself a pipeline of new business to last
For the purposes of thinking about your pipeline mean years of business opportunities. you throughout the coming months.
September 2009 Mortgage Introducer www.mortgageintroducer.com
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