A relationship built on advice

They realise there are bottom line benefits, such as repeat and referral business, that flow from providing clients with advice rather than just a transactional service.

While this is relatively new to some brokers, many have known it for some time – including Club Financial Services Caroline Springs’ principal, Paul Pisasale.

A mortgage broker for six years, Mr Pisasale has long understood the value of providing advice:

“I try to offer more than just a mortgage transaction to each and every client because it makes them ‘stickier’ and ultimately keeps them coming back year after year,” he says.

“I take the time to listen to their needs and understand their future financial goals and then we work together to create a 10- or 20-year financial plan that will help them meet those goals.

“From the financial plan, I can then establish whether or not my clients require the services of an accountant, solicitor or financial planner.”

If so, Mr Pisasale is only too happy to refer his clients on to one of his many trusted referral partners.

He has strong relationships with, among others, an accountant, two estate agents and two conveyancers.

These referral relationships help Mr Pisasale become a ‘one-stop shop’ for his clients.

Being able to do more than just complete a loan transaction ensures his clients become sticky, which can lead to repeat business down the track.

These referral partnerships also provide him with business leads, a boosted bottom line and satisfied clients.

“Referral partnerships benefit all parties,” Mr Pisasale says. “My clients are happy that their financial needs have been taken care of, my referral partner is pleased to receive a business lead and I welcome the diversified, additional income brought in.”

Despite writing an average $40 million each year in residential mortgages, however, it is not the solid income that keeps him returning to the job day after day.

Rather, he has a passion for the job that gives him “a huge amount of satisfaction from helping someone into their dream home”.

STAY IN TOUCH

“I would say up to 80 per cent of my business – the vast majority – is repeat and referral clients,” says Mr Pisasale.

So what is his secret?

The key to generating repeat business and obtaining positive referrals, he explains, is constant client interaction.

“I never set and forget a loan,” he says. “I want to ensure my clients are happy with their loan, so I call each client every six months and send out regular emails, Christmas and birthday cards.”

The constant interaction helps Mr Pisasale remain at the front of his clients’ minds.

“Whether they are thinking of refinancing, upgrading or investing, I want to make sure that I am the person my clients think of first for all their home loan advice and needs.”

One of his more effective client interaction strategies is bulk email, says Mr Pisasale (who is also quick to point out the email is not spam). Each email covers a topical and pertinent financial issue, such as interest rates or the latest in the fixed versus variable debate.

“I send out these mass emails every four to seven weeks. They not only help me to stay in touch with my clients, but they also allow me to help my clients understand current market conditions,” he says.

Each email sent generally creates a handful of leads.

“I receive a few email responses straight away from clients who are interested in refinancing, upgrading, investing – whatever the case might be,” he says.

The informative email communication can encourage mortgage holders to consider something they may have been thinking about for some time, but haven’t had the time to act on.

Mr Pisasale says some clients might also feel inclined to forward the email on to a friend or family member whom they know has been considering entering the property market or refinancing their home.

Just as his emails help generate repeat and referral business opportunities, so does the broker’s annual loan health check and free property report.

One year after settlement, Mr Pisasale offers each and every client a free property review, which shows the client what their property is now worth.

“Sometimes, they see it’s now worth a lot more than they originally paid for it and they decide to use the extra equity in their home to buy an investment property or renovate their home,” he says.

“Everybody wants to know what their property is worth.

“It is a nice extra I can offer my clients that sometimes comes with the added bonus of generating new business for me.”

“Going the extra mile for each client shows them how important they are,” Mr Pisasale says: “It is vital your clients know they are valued, because it increases the chance of generating further business down the track.

He even gives each client double movie tickets on settlement. “It is just a small gesture that shows I appreciate their business,” he says. “If they feel valued, they are more likely to use my services again.”