3 powerful data strategies for Australian brokers to boost profitability

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Cultivating strong customer relationships and providing exceptional service are critical for mortgage brokers to achieve success. In the highly competitive Australian market, having the right tools to efficiently manage customer data and streamline operations can make all the difference.

At Hound, we understand that even the best and latest technology is only as good as the data it’s working with. That’s why we start by harnessing the power of your broker data. Our unique proprietary capabilities allow us to bring all your customer data together in one centralised location, ensuring it is correct, complete, and up-to-date. Importantly, we ensure it is kept that way so there are no data gaps.

“Hound is a loan book management system designed for brokers to manage and grow their business by successfully farming their customer base,” says Hound founder and executive director Peter Smyth.

“We seized the opportunity to fill a gap in the market by building a platform for brokers to do things differently.”

Data-driven customer retention

This innovative approach includes using smart technology to continuously trawl through broker data which identifies at-risk customers with unmet servicing needs. Being proactive provides the opportunity to deliver the right message at the right time to retain those valuable customers.

“Brokers spend a huge amount of their time finding new customers – there’s a Customer Acquisition Cost which is the investment a broker has to make in terms of time and money to bring a new customer on board,” Peter says.

A 2019 report by Deloitte Access Economics discovered that the average upfront cost for an Australian mortgage broker to acquire a new customer was around $1,100. Compare this to nurturing your existing customers and it makes economic sense to ensure your current customers stay with you.

Fixing gaps in data

When brokers provide their customer information, it’s common for gaps to exist within that data. Hound helps fix these gaps by:

  • Any records which have missing information or which don’t look right are highlighted to you for further investigation.
  • Examples include cross-collateralization cases where a security property needs to be added, or guarantor situations where a loan needs to be linked.
  • Typically Hound finds a match of between 80% and 85% of customers / loans / properties – this is key to how we assess the data.
  • Each month Hound’s tech picks up cases which might have been missed from commission statements or have been discharged.

Data-driven analytics to maximise brokerage valuation

Hound’s benefits extend far beyond day-to-day operations. By creating a comprehensive track record of your business performance and key portfolio analytics, Hound positions you for success when it comes time to sell your brokerage. This detailed data and analysis can support a higher valuation, ensuring you get the most out of your hard work and investment.

Hound allows easy tracking and analysing of key metrics such as customer retention rates, loan volumes and revenue growth, which are crucial factors that potential buyers consider when valuing a brokerage. The platform’s robust data management capabilities ensure that your customer data is accurate, complete and well-organised, making the due diligence process smoother for prospective buyers.

“This is really important for the future: Hound creates a track record of your business performance and the key analytics for your portfolio that will support a higher valuation when it comes time to sell,” says Peter.

Gain a competitive edge, streamline operations and unlock new growth opportunities with data-led solutions for sustained business growth.

Contact us today to learn more about how our data-led solutions can transform your business.

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