A lot of mortgage advisers ask, ‘How do I get more leads?’

This can overlook the importance of identifying a target audience. It implies a transactional relationship between the customer and business rather than one centred around service and clients.

A better approach is to ask, ‘How can we help 27-to-35-year-old working professionals understand how they can get on the property ladder?’ This highlights the need for specificity when defining the target audience as part of a marketing strategy.

Who is the audience for the services, what are the segments within the audience and what are their needs?

The two questions will have very different marketing tactics, the first providing a hit-and-hope approach and the second providing more targeted messaging across specially selected media channels. Traditionally, targeted communications are far more effective at optimising resources and return on investment.

Good leaders often make sure to ask themselves the right questions when making decisions. A comprehensive list of pertinent questions can help to inform strategy and provide the necessary prompts to keep the brain focused on the factors that will positively impact business performance.

For example, if an adviser is looking to start a mortgage advice business or to grow an existing one, decision makers could take into account the following points when defining the target audience:

– Who is the audience for the services, what are the segments within the audience and what are their needs?

– What segments would the business be able to profitably satisfy to a high standard based on location, knowledge, capability, budget, resources and skillset?

– What market segment(s) will the business choose to target? How will it shape its strategy (product, price, promotion, people, processes, physical evidence and place) to meet the target audience’s needs, deliver customer value and provide a point of differentiation between competitors and substitutes?

– What capability must be acquired to service this audience effectively (regulatory, digital, technology, professional development, human resources)?

– What media channels does the audience use, and what messaging will resonate with them?

– What introducers/affiliates would help to promote the services to the target audience?

– What budget is required to target the chosen segments?

Many intermediaries often need more support to define a target audience. Advisers have traditionally believed that focusing on one or two segments will alienate broader audiences; as a result, effectively they end up targeting no one.

Traditionally, targeted communications are far more effective at optimising resources and return on investment

The question to ask is: does the company have the capability and budget to create messaging that will resonate with every person in the country? The answer in most cases is no. So, pick the people with whom the business can communicate effectively.

Targeted marketing is the key to success. Such an approach, which starts with the audience, must be incorporated into the whole organisation.

This article featured in the May 2024 edition of Mortgage Strategy.

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