Darren Moffatt on the impact of 'digital' for brokers

Wealthify's Darren Moffatt talks to MPA about their revealing broker survey exploring lead generation in the digital era

Darren Moffatt on the impact of 'digital' for brokers
Wealthify CEO Darren Moffatt talks to MPA about their revealing broker survey, Wealthify Industry Survey – Brokers & The Digital Channel (2017), which explores how brokers are tackling lead generation in the digital era.

MPA: The report mentioned it's the first survey of its kind to inquire into the impact of ‘digital’ on the broker channel. What led you to undertake this survey?
Darren Moffatt: Over the last year I’ve been travelling around NSW as a guest speaker for the MFAA on digital marketing. I interacted with hundreds of brokers and it became clear that ‘digital’ was a hot button issue in the industry; some were worried about the threat of digital disruption and most wanted to learn how to fully exploit the opportunity. But worringly, many did not even appear to have the basic tools and skills in place. Rather than rely on impressions or ‘gut instinct’ we thought reliable data was the way to go. When I went looking for such data I couldn’t find any! So that’s why we decided to run our own survey, the result of which is the ‘Wealthify Broker Digital Pulse’.

MPA: What surprised or concerned you most about the results?
DM: 
I’m really concerned that 1 in 5 brokers don’t have a website, but it didn’t shock me because it was consistent with my informal feedback from the broker community. The fact that only 5% of brokers say they are getting enough leads yet 92% still continue to rely on referrals, indicates that most brokers are still not ready to pay for leads. Although our rapid growth at Wealthify for our lead generation service suggests that’s starting to change.

MPA: What is the biggest digital challenge brokers are facing today and how can they tackle it?
DM:
Without doubt it’s the rise of the smartphone. This is a game-changer that few brokers fully understand: over 50% of all search activity will soon happen on the smartphone. Within the next 5 years lenders will offer full loan origination via smartphones. Getting a decent digital presence is now becoming urgent for brokers. Brokers need to understand even your oldest, most loyal customers are probably browsing online at other lenders and brokers. If you don’t have an online strategy to combat this then you have a ‘retention risk’ you’re not acknowledging.

MPA: The report mentioned more intensive education and training is needed from aggregators and industry bodies to improve on the shortcomings found in the survey – what are your thoughts on why there is a lack of training in this area?
DM: Industry has done a good job of raising awareness over the last 5 years or so, but actually getting brokers to take action – particularly the independents – is much harder. I’d like to see online marketing strategy templates offered by the aggregators and more involvement of digital agencies to consult and train brokers on the ground. We also have some plans to run Wealthify events next year, so watch this space.

MPA: Top tip for brokers to increase leads digitally? 
DM: 
Always aim to get the name and email address. Don’t rely on social media fans/followers as that data belongs to the social networks and you are only ever ‘renting’ that audience. This reality means that capturing data from your website is the best way to build an audience of value that remains a true asset of the business.