Guide 2: Tips to help you grow your equity release business

marketing tips Andy’s handy Guide 0 No. 2 of 1 at Find out more m co r. justadvise Guide 2: Tips to help you grow your equity release business FOR F...
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marketing tips Andy’s handy

Guide 0 No. 2 of 1 at Find out more m co r. justadvise

Guide 2: Tips to help you grow your equity release business FOR FINANCIAL INTERMEDIARIES ONLY. NOT APPROVED FOR USE WITH CUSTOMERS.

Unlock the potential of your equity release business Equity release can play an important role in your business. But to maximise your chances of success, and make the most of your resources, you need to take a focused approach to identifying and targeting the right type of clients. Whether you write equity release yourself, or refer clients to a third party, it could be highly rewarding.

Targeting – where to start The obvious place to start is your own clients – you have already established a relationship with them and if you have clients aged over 55, the chances are they’ll probably own their own home. As a result, you may find them to be a more receptive audience for your message.

Top Tip

You might find that equity release is a suitable component of a financial solution for a variety of your existing clients, from retired professionals, directors and managers who are focused on wealth, savings returns and managing assets to those with less income and fewer assets. There are a number of client circumstances for which equity release might be suitable and many of these are likely to be present amongst your existing clients. The most common reasons for equity release, identified by Just Retirement Solutions are: • Remortgage • Home improvements • Debt repayment • Gift to family • Emergency fund • Car

Why segment?

• Holiday/leisure

Splitting your client database into groups of people with similar needs (‘Segmenting’), means that you can use an appropriate message designed to meet the needs for the whole group. A segment is an identifiable group of clients (or potential clients) whose requirements are significantly different from that of other segments, so that they require a distinct message. Segmenting allows you to tailor the message and service to each of these groups in a more cost effective way.

By data mining your client database you should be able to find many of them.

It is vital that when you are planning and implementing your own marketing and promotional activity you follow the rules and guidance set by the regulator or other relevant authority.

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Guide 2: Tips to help you grow your equity release business

Finding new clients Clearly there is likely to be considerable potential amongst your existing clients, but it’s also worth looking further afield to find new clients. To simplify the task, ask yourself a few questions: • Geographically, where do I want to look for equity release clients? • What are the property prices like in this area? • Do demographics and lifestyle of potential customers indicate potential for equity release needs? • Who do I know that could act as an introducer of leads in this area? • What other ways could I use to get in touch with people in this area? • Do I have the right information to contact these people? • Does my website have a section on equity release that I can refer people to?

What do equity release customers look like? Potentially anyone who owns their own house and is 55 or over may benefit from equity release advice, but you can segment what could be a huge market into a number of specific segments:

Traditional

Financially Astute

Homeowners who rely on their property to form part of their retirement income.

May want to pass an early inheritance to their children.

Homeowners who haven’t made any financial arrangements apart from contributing to a state pension. Homeowners who are in retirement but are finding that their income does not meet their aspirations for retirement. Widowed, predominantly female, looking to clear debt, improve their home or pay off outstanding mortgage.

Aspirational Have sufficient income but looking for cash to enhance lifestyle. Asset rich – but much of it tied up in property. Want to boost retirement lifestyle or “what if” funds. Very wealthy, educated professionals, with a higher likelihood of being women, living in towns and cities, aged 70 plus. *Abbeyfield, Aug 3, 2012 (http://www.abbeyfield.com/what’shappening/news/2012/august/worlds-oldest-facebook-user/) **Office for National Statistics, Jul 18, 2012 (http://www.ons.gov.uk/ons/ rel/lms/labour-market-statistics/july-2012/statistical-bulletin.html#tabSummary-of-labour-market-statistics-published-on-18-July-2012)

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Have specific concerns for children or grandchildren. Looking to secure their financial future. May include retired professionals, directors and managers who are well read, cultured and live in larger detached/semi-detached homes. Concerns about estate planning or long term care funding. Widowed/surviving partner from a marriage, where they are still planning and managing their circumstances as they have always done, and with relatively large/high-value properties.

Top Tip

Know your audience Many retired people are still young at heart! Many see themselves as the ‘Third Age’ and live actionpacked lives. • Britain’s oldest Facebook star is 108*, August 2012. • As at July 2012, over 929,000** workers in the UK were 65 years old or over. It’s therefore worth promoting your services through sports clubs, local colleges and community activity groups as well as through traditional communication channels such as direct mail and email.

Guide 2: Tips to help you grow your equity release business

Ways to contact clients Existing Clients Client reviews will help identify opportunities for bringing equity release into play through finding the requirements for any additional income. Referrals are a great way to build equity release opportunities – especially if your clients have parents or grandparents who need financial advice. Newsletters sent to older clients covering topics such as ‘income in retirement’ should get your phone ringing. Seminars help to strengthen and reinforce client relationships while building selling opportunities. Emailing clients is a good way to keep in contact with them and gives you an opportunity to tailor messages around generating more income in retirement. Call your top 50 clients for a more personal touch. Consider spreading the calls out over a period of time – e.g. a month. Annual reviews and fact finds

New Clients Advertising e.g. in local press, club magazines (e.g. bowling), charity publications (e.g. Age Concern). Editorials e.g. write an article or column for your local paper or for an affinity group magazine. Seminars offer the perfect opportunity to talk to people who have expressed an interest in equity release. Referrals from your existing clients will probably be the best quality leads. Direct mail campaign e.g. from a purchased mailing list. Professional connections e.g. solicitors – offer equity release and you'll stand out from the crowd. Make sure you check any purchased mailing lists with the Mail Preference Service data and other sources of information. Other introducers e.g. estate agents for those looking to downsize but unable to sell their home for what they consider it to be worth. Other financial intermediaries such as mortgage brokers who may have clients who need equity release advice. Networking can create many opportunities to meet new clients and gain referrals. Online Networking – join an e-forum or one of the many growing numbers of Social Networks to discover new clients and professional introducers.

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Blogging – can be an entertaining way to generate interest in your expertise among prospects, clients and journalists. Podcasting – create short audio messages to communicate with your target audience. Webinar – the online version of a seminar. Promote your webinar in all your electronic and paper communications with clients. PR – promote your retirement expertise with a local press release.

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Guide 2: Tips to help you grow your equity release business

Listen to what your clients are telling you Regular or annual reviews with your older clients are a great opportunity to discuss the benefits of equity release. The key is to spot the triggers, such as: • A change in circumstances resulting in a shortfall in income or capital. • A fall in returns in savings and investments. • Income from an annuity is no longer sufficient. • Growth in property value as a major asset. • Concerns about inheritance tax. • Change in a client’s circumstances, such as health and lifestyle changes. • Accrual of debt. • Increasing inflation with level pensions.

Build your professional connections Solicitors are a particularly good professional contact due to the number of equity release related services they may offer: • Legal and conveyance services • Trusts • Estate Planning • Care Planning • Will Planning • Power of Attorney • Broaden the scope of their services. Research by Teamspirit/YouGov in Oct 2005 found that 27% of consumers turned to accountants and solicitors for advice when it came to equity release

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Why not start a referral club? Start a referral club with members of your local business community. The club creates a sense of belonging among professionals such as accountants, estate agents and solicitors and creates a forum expressly for sharing referrals among members. You could include other financial intermediaries who are not qualified to write equity release, working with them to refer clients between you according to your respective specialisms. Here are some pointers to get you moving in the right direction: • Recognise the importance of networking It’s worth doing if you want to make the most of all opportunities to grow your retirement business as and when they arise. Don’t focus on products and selling, think about building relationships and gaining insights into the way people think and behave. • Aim to become visible Be seen and get known in your local community. Look for interesting events including clubs, associations, local meetings and committees. You could even start your own networking club about personal finance – perhaps meeting informally once a month to cover topics like income in retirement. • Always appear approachable Older people can be more wary, and as a result may need more time to open up to you and to feel comfortable discussing their personal circumstances and requirements.

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Guide 2: Tips to help you grow your equity release business

Top Tip

Networking – put yourself around Ask any successful business person and they will confirm the value that effective networking can bring to your business. It is all about being sociable and keeping in touch with the way people are thinking. Set up a LinkedIn account and you could start networking from your desk! www.linkedin.com

How to get good quality referrals Existing clients with parents who have their own home are a good starting place. They may want to provide their children or grandchildren with financial support e.g. for housing or education purposes. They could also have concerns about their own long term care or financial security. It’s important you approach the issue of referrals with your clients in the right way. Here are some useful tips to get you started.

Creating the right environment for referrals Be referable If you build a customer-centric business, where everything you do is built around improving the lives of your clients, the referrals will follow naturally. Identify your ideal clients This will force you to ask for the right kind of referral rather than just anybody. It will also help your client focus on friends or family with specific retirement needs.

Cultivate other professional advisers If your client is pleased with your service and talks about you to their solicitor or accountant, you’re ready to begin cultivating a relationship with them. Create the perfect time for referrals Don’t ask for referrals during the advice process. If possible wait until a future follow-up meeting or phone call. Wait until you know the client is happy with the outcome. Have a compelling reason to call new leads Make sure you have gathered information about the lead and have marketing permissions before you call. Find out in advance what’s important to them. Be prepared to respond to legitimate questions and concerns Understandably, people feel nervous about passing on information about family or friends so have responses for questions like ‘when will you call them?’ and ‘what if they don’t wish to talk to you?’.

Top Tip Cultivate your existing clients Referrals represent one of the cheapest and most effective prospecting methods you’ll ever use. Cultivate and look after your existing clients and they will provide you with a valuable source of new leads.

For more marketing guides and free sample marketing material, visit:

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Remember that all marketing material should be fair, clear and not misleading to comply with the Financial Services Authority rule requirements and ensure that you continue to treat customers fairly. You can find out more about both of these requirements at http://www.fsa.gov.uk/doing/regulated/promo Just Retirement Limited. Registered office: Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU. Tel: 0845 302 2287 www.justretirement.com. Registered in England Number 05017193. Just Retirement Limited is authorised and regulated by the Financial Services Authority. For financial intermediary use only. Not approved for use with customers. Lines are open 8.30am to 5.30pm, Monday to Friday. Please note your call may be monitored and recorded and call charges may apply.

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