The mortgage industry is highly commoditised. Mortgage brokers everywhere offer essentially the same product, leading to fierce competition. In such an environment, differentiation is not just beneficial but crucial for survival. The key to standing out lies not in the service you offer, but in the way you market that service. The following article will explore how mortgage brokers can approach their marketing to differentiate themselves from the competition, with a special focus on outcomes and benefits over the service itself.
The Commoditised Nature of the Mortgage Industry
A mortgage is a mortgage (to a point). Whether broker A or broker B assists the client in securing it, the end product remains the same. This is the crux of the challenge - the commoditisation of the mortgage industry. So, if the product is undifferentiated, how can a mortgage broker make his or her service stand out?
The Power of Outcomes and Benefits in Marketing
As in any professional service, mortgage brokers sell the invisible - their expertise, their time, and their guidance. These intangibles are harder to market than tangible goods because their value is not immediately apparent. This is where the focus on outcomes and benefits comes into play.
Rather than solely focusing on the services you provide (home loan application assistance, loan comparisons, etc.), focus on the outcomes your services yield (a stress-free home buying experience, financial savings over time, etc.) and the benefits they deliver (personalised guidance, time-saving, peace of mind, etc.).
Outcomes: What can the client achieve with your help?
Outcomes are the end results or achievements that clients can expect from using your services. They are future-focused and appeal to clients' aspirations and goals. By focusing on outcomes, you move beyond the commoditised service and showcase what clients stand to gain by choosing you as their mortgage broker.
For example, instead of saying, "We assist in your home loan application," you could say, "We help you secure your dream home without the stress and hassle of loan applications." The latter statement highlights an outcome that clients can relate to and aspire to, making your service more appealing.
Benefits: How does your service add value?
While outcomes are about the end results, benefits are about the added value your service provides. They highlight how your service can make the clients' lives better, easier, or more comfortable.
For example, instead of saying, "We provide loan comparisons," you could say, "We save you time and effort by navigating the complexities of loan comparisons for you." The latter statement showcases the benefit - saving time and effort - making your service more attractive.
Making the Shift in Mortgage Broker Marketing
Shifting your marketing focus to outcomes and benefits requires a strategic approach. Here are some key steps:
Understand your clients: Start by understanding your clients' goals, needs, and pain points. This insight will guide you in identifying the outcomes and benefits that are most valuable to them.
Identify outcomes and benefits: For each of your services, identify the possible outcomes and benefits. Ask yourself, "What does the client achieve with this service?" and "How does this service add value to the client?"
Incorporate outcomes and benefits into your marketing message: Reframe your marketing messages to focus on the identified outcomes and benefits. Use these messages across your marketing channels - website, social media, email newsletters, etc.
Use client stories and testimonials: Real-life stories and testimonials are powerful tools for demonstrating outcomes and benefits. Share stories of how you have helped clients achieve their goals and reap the benefits of your service.
Consistency is key: Consistently use outcome and benefit-focused messages in all your marketing efforts. This will help reinforce your unique value proposition and differentiate you from your competitors.
In conclusion, to differentiate in the commoditised mortgage industry, brokers need to shift their marketing focus from the service they offer to the outcomes and benefits that service provides. By doing so, they can effectively demonstrate their unique value, appeal to clients' needs and aspirations, and set themselves apart from the competition.