Magic moments: The little things that reel in referrals

It’s the little things that separate top brokers from the rest, says the National Finance Institute’s Peter Heinrich, and going the extra mile doesn’t have to cost you a cent.

In Heinrich's recently revised book, The Mortgage Marketing Handbook, Heinrich tells of a technique to get you noticed in all the right ways by your clients, something he calls ‘Magic Moments’.

“Magic moments are small reactions or activities in a mortgage broking transaction that make it a memorable experience for your clients,” explains Heinrich.

“This idea has not been implemented to any great extent in the mortgage broking or banking industries in Australia, which creates a tremendous opportunity for the astute mortgage broker to get in before everybody else starts doing it.”

Magic moments can be little gifts or strategic communications worked into key moments of the loan process, says Heinrich, from bringing a packet of biscuits to a client’s home on first interview, or sending a bunch of flower’s to their work after settlement.

“That’s what the really good brokers do. Others just roll along like everybody else does, but the top 5 per cent, the reason the’re the top 5 per cent is because they do all those little tiny things. It’s no one thing that makes a broker better than another, it’s a whole heap of little things.”

One that works particularly well, he says, is phoning the client five or six weeks after settlement, to ask them how they’re settling into their new home.

“That phone call is probably the best phone call a broker will ever make in their life. Clients don’t expect it, because most brokers don’t bother and they just think ‘Oh, next!’ That’s why I think it’s a really good thing to do because people really appreciate it.”

Something as simple as turning up prepared to the first client interview makes a huge difference, he says.

“The majority of brokers turn up at the house and say ‘Let’s see if we can make this work’, whereas the top brokers say ‘This is what I’ve prepared for you’. You’ve already got a half an hour head start on the other guy because you’re selling before you hit the front door."

When Heinrich worked as a broker he would arrive with all of the client’s documents organised in a folder labelled with their name and ‘My loan documents’, he says.

“You don’t even know if they’re going to get a loan or not, but it puts that positivity into it. I would stand at the door and say ‘I’ve got something really exciting to show you’. To be brutally honest I’ve never seen an exciting mortgage in my life, but the fact is that you can make the process exciting.”

Great brokers can implement a wide range of magic moments throughout the loan process, but the trick to making sure it doesn’t come across as a sales gimmick is to only use those that are comfortable and easy for you, says Heinrich.

“You shouldn’t do it if it’s not a natural thing. It has to be a natural for you, it shouldn’t cost a lot of money and it should be something that’s quite easy to arrange, but it has to be what suits you and what suits your personality. Some people can get away with things and some people can’t.”

Magic moments not only help you stand out from the crowd and get the referrals streaming in, they also make sure you keep your clients sticky, he says.

“The reality is a huge number of people use a different broker the second time around, and the really sad part is that they were disappointed with that first broker. If you’re an outstanding broker on the first occasion and the clients remember you, you’ve got a client for life – and that’s what we’re trying to do.”

For more insights and tips on the mortgage broking business, check out Peter Heinrich'sThe Mortgage Marketing Handbook here.

Heinrich’s tips for successful magic moments:

• Magic moments don’t have to cost anything. Often they are new and more thoughtful ways of doing things you’re already doing.

• A couple of really powerful magic moments (with a great WOW factor) is generally more successful than lots of little magic moments.

• When considering a specific magic moment, ask yourself “Will the client remember it 3 months after settlement?” If not, don’t bother.

• Giving staff ownership of the magic moments is a great idea. Let them believe they thought of them – that way they’ll get implemented.

• One of the aims of magic moments is to create a referral frenzy, so make sure you give plenty of business cards to your clients.

• Magic moments don’t work unless you’ve got the basics right first

Some magic moment suggestions:

• After the initial enquiry: send a “thank you for your enquiry letter” as part of an Information kit about your business.

• Before your first interview: have your receptionist or assistant phone the prospect an hour before the interview to confirm. Some brokers worry this gives them an opportunity to pull out, but it saves the time of going through the interview if they’re not ready, and gives you the opportunity to talk through why they’ve changed their mind.

• At the first interview (if at their home): take a cake or bottle of drink as if you are visiting a friend. One broker in particular would bring Tim Tams to snack on with coffee or tea.

• After the first interview: send a “thanks for your time” email or SMS message.

• After submitting the loan application: send a letter justifying your choice of lender and loan type, as a way of reassuring the prospect that they are doing the right thing.

• Approval: personally deliver a gift to the clients and inform them of the approval in person! Some brokers will deliver a bunch of flowers or other gift to the client’s work. This is one of the most effective ways to get people talking and generate referrals.

• Loan document sign-up: offer to help your clients sign-up the loan documents. It’s a daunting task if they do it alone, so offer your expert assistance. Give their children (if they have any) some jelly beans. One broker would take a high quality pen along to the sign-up, and leave it with the client at the end of the meeting.

• Take a picture of your clients signing their documents, and then send them the picture in a frame. This is one that will work for some brokers and clients, if the personality types fit, but it’s not for everyone.

• Settlement: the secret with making settlement a magic moment is not to focus on the loan settlement as such, but focus on the new property your clients have acquired. Give them a pizza voucher or house warming gift on the day they move into their new home.

• 4 to 6 weeks after settlement: once you’ve finalised the mortgage transaction and the dust has settled, your clients would be delighted to receive a “Have you settled in?” phone call.