Repeat customers are a key driver of success for brokers, new data from the Finance Brokers Association of Australia (FBAA) revealed.
The Monthly Broker Poll, conducted by CoreData among FBAA members, found that nearly 60% of brokers have at least half of their business coming from returning clients, with a quarter seeing 70% or more repeat business.
High repeat business linked to positive performance
The survey highlighted a strong link between repeat customers and business confidence.
More than three-quarters (76%) of brokers with at least 60% repeat clients reported that their business performance was the same or better than the previous year.
This trend was consistent across both mortgage and finance brokers, illustrating the importance of customer loyalty in maintaining a thriving business.
FBAA managing director Peter White (pictured above) stressed the significance of customer relationships in the broking industry.
“The findings clearly show that building strong customer relationships is the key to success in our industry, as clients can often become clients for life,” White said.
He stressed that good service and prioritising clients’ interests are essential to fostering long-term trust and repeat business.
Lead generation challenges highlight repeat business value
The poll also revealed that many brokers face difficulties in generating new leads, with 33% identifying it as their biggest challenge over the last six months, particularly among finance brokers (38%).
White noted that existing clients are a valuable source of new business opportunities, advising brokers to actively seek referrals.
“Existing clients provide the biggest opportunity for leads,” he said. “Brokers should always be asking for referrals.”
The FBAA’s Consumer Access to Mortgages 2023 report further supports the critical role of trust in the broking industry, revealing that 86% of mortgage broker clients trust their broker.
This high level of trust translates into long-term relationships, with 83% of clients indicating they would use a broker for their next mortgage application.
“The high level of trust that brokers have with clients is our greatest asset,” White said.
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