Why broker-client communication is key

Two critical elements of an effective communication process are ensuring that brokers not only ask “powerful” questions, but listen closely to what the clients are attempting to tell them.

“We often look at communication as a one-way push, but communication is a two-way street,” Mr Collin told The Adviser.

“So, brokers could find the little gaps in their communication process when a client enquiry comes or when a client calls you. How do you respond to that enquiry and how quickly do you get back to someone? If it’s taking longer than expected to accumulate the information you need to put their application together, how is your communication process of keeping your clients in the loop?

“If you could trim your response time by just a few minutes, you could make your clients feel more important and loved, and feel looked after. That helps build a better relationship.”

While noting that brokers would have created checklists before meeting with clients, Mr Collin urged them to identify gaps in the checklist and ask additional questions to accumulate the relevant information required for the application, save them and their clients time, and connect with clients more effectively by understanding their circumstances.

“I know we have checklists, but when you’re talking to a client, ask yourself whether you are picking up on those little hints that they drop because what people say is often not what they mean,” he suggested.

“So, if I just took one small step and asked one extra question that I normally wouldn’t ask, it would be pretty easy for me to get responses from the client and start seeing results. I can pretty quickly determine whether or not that question is worth keeping or pushing aside.”

Mr Collin – who encourages business owners to identify tiny gaps in their practices and implement small changes to improve efficiencies – said that by becoming an effective communicator and implementing these small changes, brokers could ultimately increase growth and profit in their business.

Furthermore, while employing small changes could seem insignificant, he said that it would be simpler to monitor a small-step approach, and the results they yield.

“It’s really hard to measure big shifts and changes. If you change 17 different things at once, how do you know which works and which doesn’t?” he said.

Recent research from Connective has underscored the importance of effective communication between a broker and their client, as it revealed a “disconnect” between what borrowers say they want and what brokers believe they want.

According to a survey of both brokers and prospective borrowers, a borrower’s top expectations from a broker included brokers sourcing the lowest interest rate, having loan options explained clearly, and being provided with an easy application process.

However, the surveyed brokers said they believed that the top two priorities for borrowers would be turnaround times and updating clients on the progress of their application (but these expectations were not included in the top five priorities listed by borrowers).

Broker Essentials director Jason Back recently suggested to The Adviser that this disconnect could have occurred because brokers may not be tailoring their service offering to match their clients’ top priorities.

Research by Momentum Intelligence has also emphasised the importance of effective communication between brokers and their clients, with the 2021 Consumer Access to Mortgages report finding that 85 per cent of the borrowers surveyed who engaged a broker rated the communication well, compared with 69 per cent in proprietary channels.

Find out more from Nigel Collin about how brokers can implement tiny changes in their brokerages to increase efficiencies at The Adviser’s Business Accelerator Program 2022.

Click here to secure your spot.

[Related: How brokers can deliver what clients want]