Standing out from the crowd - Carolyn Stafford

Marketing guru, Carolyn Stafford has worked with mortgage brokers around the country. She shares a few tips as to how brokers can get themselves noticed.

In his book Purple Cow, best-selling author Seth Godin says that the key to success is to find a way to stand out – to be the purple cow in a field of black and white Holsteins. But with the same set of products as everyone else, it is not always easy to get yourself noticed in the mortgage industry, acknowledges Carolyn Stafford, who runs a marketing business called Connect Marketing Professionals on Sydney’s Coogee Beach. Stafford, who has a background in lending herself, has worked with hundreds of mortgage brokers nationally on how to work their networks and create successful branding. She has also recently written a book, Small Business, Big Brand, which provides strategies for small businesses to stand out from the crowd.

Point of difference

The first thing mortgage brokers need to do is find their point of difference, she advises. “It’s obviously a very competitive industry and it’s extremely hard for a broker to find a point of difference from others, because it’s also a very homogenous industry,” Stafford says. So how do you find a point of difference when you are selling the same products and service as everyone else? “I think the biggest point of difference for mortgage brokers is the quality of the relationships that they have – whether it’s with their clients, referring partners or staff. That’s really the only thing their competition can’t emulate.” For this reason, she believes that brokers really need to focus their energy on what she calls “relationship marketing tactics”. “By that I mean things like networking, building alliances with other business owners for cross-referrals, maximising their existing client base for referrals, doing things like events and hospitality where they’re mixing and mingling with their clients, sponsoring events – anything that gets them in front of people and creates word of mouth,” she says.

Carve your niche

Before you engage in any type of marketing, Stafford recommends thinking carefully about what types of clients you want to attract to your business. “Brokers are pretty damn good at closing the sale and actually getting the appointment. But what they’re not so good at is getting in front of the right people,” she says. “Who do I want as a client? That is the number one question that brokers should be asking themselves. In five years time, in 10 years time, what clients do I want to be working with and dealing with?” The biggest mistake a broker can make, she insists, is to try and be everything to everybody. “That’s dangerous, because you end up finding that you have a whole lot of clients who are perhaps not like-minded or who don’t resonate with you,” she says. Rather, she believes that mortgage brokers are far better off carving a niche for themselves, so that they can market to specific groups of people. Moreover, by building up specialised knowledge within a particular field, brokers can find a way to differentiate themselves. “People will be coming to you not only for the products and services that you provide, but also the expertise that you have in a specific market,” she points out.

Be specific

When you are thinking about creating a niche, try to be very specific, Stafford suggests. “I know in the financial “Who do I want as a client? That is the number one question that brokers should be asking themselves” planning industry they talk about high net worth individuals as being their target market, but I think all of that is rubbish. Who’s a high net worth individual? Everyone wants that market for a start, and secondly, a target market’s only a market if you know who they are, where they are, and how to get them.” For example, if you are thinking about targeting the mum-and-dad owneroccupier market, think about which mums and dads you wish to attract to your business. “There are niche markets even within the mums and dads market – for example, mums and dads who send their kids to private schools in a certain area, who you can target for a special offer.”

Groovy, baby

Branding is another way that brokers can differentiate themselves from the crowd. Go for something interesting and “groovy”, she says – and whatever you do, don’t be bland. Being bland is the riskiest thing you can do in business, she says, mentioning Godin’s book, Purple Cow.
It is better to alienate some people, and be clear about the people that you are targeting, rather than trying to appeal to everybody, she opines. “Look at the Virgin brand, for example – Richard Branson probably alienated a big percentage of the market because of the brand name and positioning. The biggest danger is to try and be everything to everybody, and end up being nobody to everybody. I really believe it’s critical to go after your market, be outlandish and risky, and stand out.” The key is finding your target market. “If you really want a specific market, then you can be very clever with your name and branding so that it instantly appeals,” she says, giving an example of a Perth mortgage broking business, Miss Mortgage.

Effective marketing?

So what is the best way to spend your marketing dollars? Well, forget advertising in the newspaper or on the radio. “My opinion is that mainstream advertising is a waste of money,” Stafford states. Instead, it all comes back to what Stafford said at the start – the best thing brokers can do for their business is to work their relationships. “The real way they’re going to attract new business is by leveraging their relationships and their networking.”

Carolyn Stafford’s book, Small Business, Big Brand, is available from her website www.connectnetwork.com.au
 

About Carolyn Stafford

Carolyn Stafford is the director of Connect Marketing Professionals, a one-stop marketing shop just for small business. Carolyn has worked extensively in the financial services sector. She is a regular columnist in the Business Network section of The Age and the Sydney Morning Herald and a sought after speaker. She hosts regular breakfasts, workshops and events across Australia.