"We have seen more consumers turning to longer-term fixed rate products, potentially reducing the touchpoints between advisers and customers"
'The Mortgage Broker’s Guide to Customer Retention' covers a range of tactics including creative communications, how advisers can build and benefit from local referral networks, and using tools like social media to engage customers.
While more than three-quarters of all mortgage lending was conducted by advisers in 2019, data shows that brokers are not getting the same share of repeat business when customers return to remortgage. Of the last 10 maturities at Coventry for intermediaries where borrowers had been introduced through a broker, more than a quarter (27%) of these customers contacted the building society direct when it came to discussing a new deal. This is despite Coventry for intermediaries encouraging customers to seek advice from a broker.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Brokers all over the country are doing an excellent job advising new clients on the right solution for their circumstances and sourcing the best products for their needs. However, when it comes to dealing with their next transaction it appears some brokers may not be maximising the opportunity.
"We have seen more consumers turning to longer-term fixed rate products, potentially reducing the touchpoints between advisers and customers, something that may have been exacerbated by the Covid-19 lockdown. As a lender that is committed to supporting advisers, we want to play a role in helping brokers to meet this challenge.
"Our latest guide charts some of the steps that brokers can take to build closer relationships with their clients that last for the long-term. By developing these stronger relationships, brokers can create a steady stream of business for the years ahead.”
