The mortgage broking market in New Zealand is dominated massively by a handful of large broking companies. These companies have made very large and very strategic investments in Internet search ranking, as they recognised at an early stage the massive trend particularly amongst millennials to choose products and services using Google Internet search.
At the time these companies made this investment it would have appeared courageous, as there was no certainty that they would get any significant payback. There has always been a wide acceptance of the need for an extensive marketing budget, but this was generally for the more traditional forms of marketing such as television and news print advertising and billboards etc. Investment in Internet search required a significant leap of faith.
For a small handful of mortgage brokers in Canterbury this has indeed been a lucrative investment, as through a combination of very smart web and SEO development and a fair degree of good fortune they have managed to get themselves ranking in the top 3 of Internet searches for the major keywords. Others may have spent similar amounts of money but did not succeed in getting the top ranking, and for these unfortunate companies their investment has been largely wasted.
The simple fact is that the top 3 Google searches almost always win over 60% of the total Internet search traffic, and if you are not on page 1 then you will be sharing around 1% of the total Internet search traffic with all of the other mortgage broking companies and pages 2 and beyond. It is a ruthless business.
Any mortgage brokers Christchurch who are not in the top handful of Google searches simply cannot rely on the Internet as a source of new business, and they have to rely on more traditional approaches such as networking in the industry, referrals and repeat business. In all cases they have to deliver genuinely good service or their reputation will suffer and they will quickly go out of business.
Meanwhile the large broking companies having to cope with the opposite problem of new business continuously rolling in the door, and so they all have administrative staff who are screening the calls to make certain that only the most likely candidates for a mortgage get passed to the brokers. The companies sleep well at night knowing that there is always new business rolling in the door, even if they happen to deliver poor service and a poor experience. Every customer is a new customer who is not connected to someone knowledgeable and therefore does not know about industry reputations. Its important to know how to find a good mortgage broker so you can get a good deal.
The good news is that this market is ripe for disruption, as other canny players with extensive SEO capability can rank their own websites in the top 3 searches, and can steal some business out from under their noses of the major players.