Effective back book management and customer retention are pivotal to the success and sustainability of any broker’s business.
Despite the Australian industry’s robust growth and substantial revenue pool, estimated at $3.75 billion per annum, there has been a gap in the market for a comprehensive solution addressing effective back book management and customer retention needs.
A conservative estimate suggests that if the industry allocated merely 2% of its gross revenue towards addressing this gap, it would create a potential market worth $75 million annually. This translates to an investment of less than $4,000 per annum for each licensed broker – a nominal amount considering the potential return on investment in terms of enhanced customer retention and streamlined back book management.
Enter Hound, a cutting-edge Australian system, tailored specifically for the local broking industry. Hound is not just a tool; it’s a solution designed to fill the void in the market, offering a suite of features and benefits catering to the challenges faced by mortgage brokers.
The high cost of losing a customer
The Hound platform works like a dog 24/7 to maintain accurate, up-to-date back book data, allowing brokers to have all the information they need at their fingertips. The importance of having timely data cannot be overstated, says Hound’s Peter Smyth.
“You can’t manage what you don’t measure, and without accurate data you can’t manage your customer retention effectively,” he says.
“Think of it from your customers’ perspective: if they feel they are not receiving sterling service you may lose them.”
And the cost of ineffective customer retention is high. The Australian Broker website showed the average broker churn is around 17%. This implies that even a broker with a loan book of $40m, $260k p.a. in trail, could increase profit by tens of thousands just by more efficiently managing their customers needs.
“So it makes economic sense for brokers to put customer retention at the heart of all they do,” says Peter.
Why Hound stands out
With a keen understanding of the challenges faced by brokers, Hound’s cloud-based platform is secure and always up-to-date. Hound provides brokers with a comprehensive toolkit to enhance customer retention and drive business growth. These include:
- Customised back book management: Hound understands that effective back book management is more than just keeping track of past transactions. It’s about actively managing client relationships and mortgage lifecycle events. Hound provides brokers with detailed insights into their client’s mortgage journey, allowing for timely interventions and advice, ultimately fostering client loyalty and repeat business.
- Enhanced customer retention: In a market where new client acquisition is increasingly costly and competitive, retaining existing clients is crucial. Hound’s system is built to not only manage existing clients effectively but also to identify opportunities for refinancing, upselling and cross-selling, which increases the lifetime value of each client.
- Data-driven insights: Hound leverages data analytics to create actionable insights. This data-driven approach enables brokers to make informed decisions, tailor their services to client needs and anticipate market trends.
- User-friendly interface: Recognising that brokers are not necessarily tech experts, Hound offers an intuitive and easy-to-use interface. This ensures that all brokers, regardless of their technical proficiency, can leverage the full potential of the platform.
- Compliance and security: In an industry governed by strict regulatory requirements, Hound ensures that all data management and client interactions are compliant with the latest regulations, providing peace of mind to brokers and their clients.
- Local market focus: As an Australian-developed system, Hound is tailored to the needs and nuances of the Australian mortgage broking market. This local focus ensures that the strategies and solutions offered are relevant and effective.
At a time when customer retention and efficient back book management are more critical than ever, Hound provides a bespoke solution for the Australian broking industry. With Hound, brokers can confidently address the gaps in their current systems, ensuring they stay ahead in a competitive market, and maximise their share of the industry’s revenue pool.