“I can’t believe I am so busy” a broker said to me recently.
It is certainly true that our Network advisers are super busy as the housing market bounces forwards again and one thing we try to do through the Regional Business Consultancy team is to ensure that development and earning potential is not overlooked, even in the busy times.
The nine Business and Development Consultants we have in the team work with our members to support them to retain focus on the activities that drive a business forward, while also ensuring that our members in the Sesame community continue to trade safely.
One such area of discussion is the “second-hand” mortgage arena; that is product transfers, remortgages, or end-of-deal customers.
Lenders are usually keen to re-establish contact, but here at Sesame we believe whole-heartedly that advice is needed throughout the mortgage term and not just at the beginning – and that this needs to be delivered by the mortgage adviser.
Bringing end-of-deal support to life
Working with one such firm as an example of many – let’s call them Example Financial – Sesame’s Regional Business Consultancy team supported them to establish a robust diary advance warning process. By using the CRM system available to all Sesame members, Example Financial created an automated reminder, so that all of their customers’ end dates would flag as a task months in advance, alongside a comprehensive list of end-dates for the following year.
This gives the team over at Example Financial a great starting point to ensure all their end-of-deal customers were contacted at the right time – just before they neared the end of their deal.
In addition to automating Example Financial’s end-of-term advice process, we also talked with the firm’s advisory team about how customer expectations are changing, and how brokers need to offer a more holistic approach to advice.
Example Financial realised that in order to grow their business, they would need to review their approach to expand the level of support they could offer their customers. To support them with this, the Sesame Regional Business Consultancy team worked with them to develop their skills, update their business plan, and review their time management.
Example Financial also agreed to take part in Sesame’s new Stepping Stones solution, building-in protection support to their mortgage advice process. In addition to training events, Stepping Stones gave the firm access to a suite of collateral and support materials which advisers would send to their customers ahead of any meetings. This pre-meeting activity helped to increase customer awareness of the need to protect their home and lifestyle, and educated customers about the products designed to help them do this ahead of the advice conversation.
Here comes the maths
Example Financial reviewed their sales and advice process both before and after implementing Sesame’s Stepping Stones approach.
They determined that the average time required to prepare for and deliver a mortgage review meeting and sale is 100 minutes.
Before Stepping Stones, if Example Financial had wanted to double their income following their existing process, they would have needed to conduct twice as many such meetings.
Of course, two meetings would take the Example Financial team twice as long as one meeting. Naturally! And if one meeting generated a net profit of £500 for the firm, then two would generate £1000. Elementary!
However, looking at the time required by advisers following the Stepping Stones approach, Example Financial realised that, while the additional preparation time is only a nominal extra 30 minutes, the Stepping Stones appointments are delivering £1,200 net profit – a £700 increase on the original £500.
So now, the average time required by Example Financial to prepare for and deliver a mortgage review meeting is 130 minutes – but this meeting delivers a net profit of £1,200.
This means the 30% increase in adviser time required by the Stepping Stones approach drives a 140% increase in income.
And for Example Financial, this maths made absolute sense.
To find out more about how Sesame could work with you to introduce a similar approach in your firm – protecting your customers while also driving your business levels – contact us today.
Here at Sesame, it’s all in the maths.
More from Consultants’ Corner
Face To Face With The New Normal by Tim Wade, Regional Development Manager: London & South East
Preparing For A Post-COVID World by Mark Charlesworth, Head of Business Consultancy