Why only 1 in 10 brokers are committed to digital marketing

In a recent survey by Momentum Intelligence commissioned by Joust, brokers were asked if they invest in digital marketing. Two-thirds (67 per cent) said they did — to varying degrees — while one-third (33 per cent) admitted they never invest in digital marketing. 

Delving into the figures, it is quite striking to note that only one in 10 brokers run an ‘always on’ digital marketing campaign. Over one-third (39 per cent) said they only use digital marketing on an ad-hoc basis. However, when asked how they would rate their return on investment (ROI) for digital marketing, over half of brokers (55 per cent) described it as ‘good’ or ‘excellent’. 

“These figures illustrate a common trait among broking businesses, which is to stop marketing when times are good and start marketing when things cool down,” says Joust ambassador and former PLAN Australia executive David O’Toole.

“When brokers are busy and business is coming through the door, marketing is the last thing on their mind. They are consumed with the work in front of them. This short-sightedness is what can create major problems for those looking to build a sustainable business that is consistently busy.

“An ongoing digital marketing strategy, if implemented properly, can smooth out that lumpiness that plagues so many brokers.”

The value of customer acquisition  

While brokers see value in digital marketing, as the research shows, the majority invest in it irregularly.  

Anny Le Wilson, Joust’s chief revenue officer, says the true value of digital marketing is unlocked when businesses make an ongoing commitment and integrate it into their workflow. 

“Planning for the future and building a sustainable pipeline are critical to the success of any broking business,” she says. “But it is important to partner with the right people.”

There is a big difference between lead generation and customer acquisition, says Ms Le Wilson: “Lead generation is a time-consuming and costly process. The leads are usually poor quality, require additional work and even then, the broker isn’t guaranteed a result.”

Joust is not the in the lead generation business. It is a digital marketing platform that connects brokers to borrowers who are willing to be engaged. 

Watch the Joust discussion on connecting with new clients using tech

“They are already on our platform looking for a home loan. The quality of our data means brokers can even choose which borrowers they work with. Unlike lead generation, where brokers are often left working out if the ‘lead’ is even a borrower at all,” added Ms Le Wilson.

For David O’Toole, Joust’s digital marketing capabilities present a far more sophisticated approach to building a regular flow of new customers. 

“Joust has the capability to drive significant flows though a broker’s business, delivering a stream of quality customers on a consistent basis,” he says. 

“The industry is evolving, and younger, more tech-savvy operators are beginning to realise they can build a thriving business around smart digital marketing platforms like Joust.”

Anny Le Wilson believes there will continue be a small cohort of brokers who rely on traditional channels – for now. 

“The research shows that a third of brokers don’t invest in digital marketing at all,” she says. “We’re not looking to change their mind.

“We’re focused on the majority of brokers who value digital marketing and want their investment spend to deliver quality customer connections. These are forward-thinking finance professionals who are eager to scale their business in an increasingly digital world.”

For an in-depth analysis of the value of connecting with new clients using tech, watch the Joust panel discussion in The Advisers Innovation series.