As business owners, it is a constant juggle between generating leads, processing loan applications and retaining past clients. We all know that if we fail to allocate the appropriate time to each activity, it is likely that at a future time we are likely to face a particular challenge.
However, with the current active property market and historically low interest rates, new prospects have probably been walking in the door without any significant effort.
As a result, the sole focus of most brokers at the moment is on processing loan applications − but some are still recognising the need to stay in touch with past clients. However, we are currently seeing many brokers not continuing to undertake lead generation activities.
You might say, “But why do I need to? I’m already extremely busy and cannot handle any more loan applications!”
Well, you need to look forward and consider the current ‘heyday’ is not sustainable and will not last forever. Therefore, you need to consider where your new clients will come from when this occurs.
As the economy recovers, interest rates will increase and the property market will ‘come off’. Traditionally when this happens most brokers will continue to do business through these softer markets with a greater dependence on refinances.
However, this market upturn has been different to those in the past. All time historically low interest rates have not only stimulated property markets but they have also resulted in significantly more borrowers looking to ‘lock in’ their loans. One major lender has indicated that requests to fix interest rates are up from 15% to 50% of new loan and refinance applications. More so, a large proportion of these borrowers have opted to lock in rates for four to five years.
The consequence of this will be that during the next downturn, brokers will be relying on a smaller number of borrowers to refinance and this will lead to greater competition amongst brokers.
So what do you need to be doing now to place your business in the best possible position for success during the next downturn?
We all know that new clients are created from past generated prospects. Therefore, would it not make sense to generate these prospects now when the market is very active?
It’s significantly easier to build a database of prospects when the market is active. These prospects are likely to have less interest and are curious rather than waiting for the market to soften.
You will then be much better placed to weather a downturn with a considerably larger prospect database. Your focus can be on the conversion of these prospects into clients through engagement and qualification rather than having a need to generate new prospects.
Every business is unique and there is no one size fits all strategy when it comes to establishing your lead generation strategy.
When determining your lead generation and conversion strategy you need to:
- consider the most appropriate lead generating strategy for your business having regard
to the relationships and resources available to best place your business for growth
- understand the journey of a prospective client from how they will be identified through
to your first meeting with them
- ensure there are strong lead capture and qualifying strategies in place
to ensure your time is productively utilised
- establish how you will nurture the relationship and ultimately
convert the lead into a client, and
- determine how best to deliver and resource the overall lead generation strategy in the most effective and efficient way to drive a return on your investment of time and money.
By understanding your objectives, target market and available resources, you’ll be able to formulate a deliberate lead generation and conversion plan to achieve your objectives whatever they may be.
Unsure where to start or how best to establish a lead generation process for your business? We invite you to join us online for our next webinar to learn the importance of implementing a lead generation strategy in a ‘hot’ market.
Alternatively, click here to book in a call with one of our marketing experts to make a start today.