FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

Subject Code & Title : FNS40815 Finance And Mortgage Broking
Assessment Type : Assignment 1
Activity 1 :
Analyse and discuss the term ‘buyer motivation’, in relation to innovative banking products and services.(Analyse and discuss issues relating to buyer motives).
FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV – Australia.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

Activity 1 Answer :
Understanding the motivations behind your buyers, how they interact
with your e commerce site, and where they are in terms of their decision-
making process is crucial for any seller.

Here are some eye-opening statistics about today’s digital marketplace:

1.50-90% of the buyer’s journey is complete before a buyer reaches
out to sales.
2. 67% of the buyer’s journey is now completed digitally.
3. 25% of buyers reveal their interest to vendors at the early stages of
the journey.

These findings speak volumes about what goes on inside the heads of
today’s consume.

Buyer motivation is the set of psychological factors behind a consumer’s
decision to make a particular purchase.

That purchase is the end result of a process referred to as the “Buyer’s
Journey” — a three-stage process consisting of :

  1. Awareness.
  2. Consideration.
  3. Decision.

Some may define this using a different number of stages, but the underlying concepts are the same.

Let’s take a look at these stages and examine how they relate to a buyer’s purchasing motivation.

This is the primary stage of the journey, where a buyer becomes aware of a problem, want, or need.

It could be the need to purchase a smoke detector, or renter’s insurance, or anything for that matter.

The motivation here can be either internal or external (we’ll go into further
detail about the differences in the next section), and it’s important that pain-points be addressed to help identify the problem.

Once a buyer is aware of their problem (or want or need), they are then motivated to start gathering information.

At this stage buyers are considering their options, so providing any product education resources like product specs, reviews, and other details will be greatly appreciated.

It’s at this stage where the buyer is motivated to make a final decision and has determined that their needs have been met.

One important note to keep in mind stems from a 2009 study which
discovered that two factors can affect final purchasing decisions:

  1. Negative feedback from other customers.
  2. The level of motivation to comply or accept the feedback.

Activity 2
Describe the most common steps in a selling process.
(Describe the key features of the buying and selling processes).

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

Activity 2 Answer
Selling Financial Services There are 3 common challenges when it comes to selling financial services: → Generating new conversations with potential customers. → Leading those conversations skillfully so they win business, often in the face of strong competition.→ Maximising business with existing customers. Banks and financial institutions struggle to engage conversations that lead to new business and generate the internal referrals
necessary to grow accounts as much as they should. Financial services companies who have overcome these challenges experience much greater profit and revenue growth than the rest. There are many types of sales training applicable to financial services: Financial Services and Bank Business Development Training: Designed to help financial services
companies and banks improve overall sales performance and achieve sales conversation excellence across all levels.

Sales Coaching: Working with a business development coach can be the difference between success and failure in selling financial services. A sales coach can help you staff to stay on task and on target to reach their goals. Sales Assessments: Helps to identify who on a team not only can sell, but who will sell and to what success level. Assessments measure sales attributes and skills, focusing only on the factors that really make a
difference in sales success. Cross-Selling, Up-Selling, and Strategic Account Management:When it comes to selling financial services and banking solutions, the relationship does not end after the first sale. In fact, this is just the beginning. There is an untapped opportunity to grow existing accounts through cross-selling and up-selling products and services—and
selling the true value of an institution and financial services team.
Up-selling is to get the customer to spend more money – buy a more expensive model of the same type of product, or add features / warranties that relate to the product in question.A cross-sell is to get the customer to spend more money by adding more products from other categories than the product being viewed or purchased.

Activity 3
Discuss the following statement: “Buyer resistance, or objections, indicates interest”.(Discuss the key features of conflict resolution and persuasion techniques, including how to overcome buyer resistance).

Activity 3 Answer :
The right brain plays a dominant role, contributing 80% of sales success. It puts all the information together, forms a picture, and makes a decision. The presentation style many sales people use is a half-brained approach to selling because it engages only 50 per cent of the customer’s attention span. We’ve all seen customers’ eyes glaze over when financial statistics are mentioned, dry figures are not what they want. Customers want financial
independence, security, peace of mind and simplicity in their affairs and they look to you for financial guidance. Top salespeople are both profound and uncomplicated, the way they sell is both illustrative and simple. Put yourselves in the customer’s shoes. Which response would you prefer: → “This managed share fund will produce an after-tax yield of approximately 5%” or → “This investment will generate an amount of no less than $285,
payable to you every month.” Bank salespeople often speak a foreign language. They use financial jargon customers find confusing and annoying. The customer wants to know their investment will pay for their kid’s university education, not the ins and outs of a technically
sound analysis. The sales presenter who appeals to both sides of the brain doubles their chance of successfully winning or retaining a customer. The typical linear sales process has become redundant. However, the majority of salespeople still rely on it. The financial adviser presents the product they believe will be the customer’s salvation. The product’s features and benefits are listed, such as the weightings in equities and cash, and how it
works. The sales person waits for objections and addresses those objections with more compelling statistical evidence, such as the fund’s great performance or comparison against industry peers. Finally, hoping their powers of persuasion and reasoning have prevailed, the salesperson moves to close the transaction. Yet the customer baulks.

Activity 4
Identify and describe some recent major disruptors to traditional consumer banking services.(Describe current industry product and service trends).

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

Activity 4 Answer
Here are the five most common concerns prospectors face, along with some simple approaches to responding to them. “Just send me some information about your financial service product.” This concern varies in intent depending on when it comes up in your call with a prospect. If it comes up before you have had the chance to deliver your value proposition and explain who you are and what bank you represent, it’s very clearly a brush-
off. If it comes afterward, but before you’ve had the chance to ask qualification questions, there may be interest, but the prospect isn’t yet willing to talk about it further. If it comes at the end of your call, after you’ve gone through both your value proposition and qualification, the prospect may have decided this isn’t valuable somewhere along the way.
No matter where it comes up in the call, it’s the sales person’s duty to uncover what is really going on: Do they not yet understand the value, or are they not ready for a buying conversation? Why not? Responses: There are a few potential responses to this, depending on what stage the call is at: → Before you’ve delivered the value proposition:”Can we take 30 seconds now for me to explain what we do, and you can then decide if it’s
worth a follow-up?” → Before qualification: “Can I ask you a couple questions now, to better understand how we might help?” → After qualification: “Typically, people find it more valuable to see how this works in a demo.” Competition: What this sounds like: “We already bank with Competitor X.” This is where it’s important to know why your bank is
unique, and be able to explain that value clearly. Your prospect just heard, “Hi, we are Bank A” and thought, “Oh, we’re with Bank X, we’re OK.” Your prospects are busy; they don’t want to fix things that aren’t broken. It is your challenge to change their mindset, and explain why they need the specific value you or your bank provide. Response: “At this point, we’re not asking you to change anything. A lot of our customers used to, or still use,
Bank X. We’d just like the opportunity to show you how we are different, and how we have provided additional value to our customers. We can present some use cases of other companies, like yours, who work with us, and with Bank X. When is a good time to schedule a follow up call?”

Procrastination: What this sounds like: “Call me back in a month or two.” Prospects are busy. They will push anything off to tomorrow, because today is swamped. Don’t let them! You have a solution they needed yesterday. Reassure them that this is not a buying conversation. You just want to show them what you do, and to see if there’s value for them.

Response: “Of course. If it really is bad timing, I’m happy to do that. However, I would still like to set up a five-minute call to show you what we are doing and how we might help.That way, if it’s not interesting, we don’t have to worry about me chasing you next month,but if it is, we’ll have more to talk about then. When is a good day/time for us to chat?”

Budget: What this sounds like: “We don’t have the budget for this.” If budget is an important part of your qualified lead definition, this may be a stopping point. Even so, it is important to dig a bit further to understand what not having budget means. Can they not afford it? Has your prospect used all approved budget for the period? Could your buyer find the money elsewhere, if you show enough value? In most cases, the prospect doesn’t
need to have a budget at this stage of the process, and sales staff should leverage this fact to overcome this concern. Response: “That’s okay. We don’t expect you to buy anything right now. We’d just like the opportunity to share what we are doing, and see if it’s valuable to your company. Can we schedule a follow up call over the next couple days?”

Getting in the Weeds:
What this sounds like: “Does your product do X, Y, and Z?” This isn’t
so much a concern, as an obstacle to closing a call with a prospect and getting them to the next appointment, (e.g., a demonstration). However, it is one of the most common obstacles that prevent converting the prospect into a lead. Not only does getting in the weeds waste time, you also run the potential of getting into a too-detailed features/benefits conversation. The good news is this generally means the prospect is interested. Use this
fact to end the conversation and set up the next appointment.

Activity 5
Outline some of the changes organisations may need to make to their sales process procedures to take into account the trend to ‘consultative selling’ (which places the emphasis on the salesperson becoming a “trusted advisor” to the customer).(Outline the key features of organisational requirements, including policy and procedures relevant to prospecting for new clients).

Activity 5 Answer
As successful salespeople have consistently discovered, 80 per cent of decisions are based on emotion, and 20 per cent on logic. When you tell a customer that a particular managed share fund is first quartile in the industry for investment performance in the last 12 months, you’ve invited a comparative objection, such as, “Show me all the funds in the first quartile.”

Top salespeople have the ability to tell a story or use an illustration that hits the emotional bullseye. They address the emotional or creative triggers that cause decisions to be made, instead of spending the interview overcoming objections. The tactic most often used by top sales people in their discovery process is the art of framing provocative and incisive questions. Questions such as these speak to the customer’s emotions, not their logic: →”What do you expect from me as an adviser?” → “What lessons have you learned about investing or borrowing?” → “Is there anyone else whose future hinges on your financial decisions?” → “What is the best financial decision you have ever made?” Once you are comfortable with some good penetrating questions build them into your repertoire and stick to them. The discovery sales process should give you enough information to then target your product explanation to the customer, by illustrating how it fits their needs. If customers have questions about particular features and benefits, you can retrace and work backward to outline them. Why waste time on statistical evidence, which may not be necessary?Although do-it-yourself investments, like self-managed super funds, are popular, people
still yearn for financial mentoring, guidance and empathy. Your success with customers won’t hinge on being a better financial analyst, but rather on being a teacher and story seller.

Your customers don’t want an economist or an investment analyst. They want an adviser, counsellor, and coach. Story-selling is an approach that will keep your customers from becoming bored and will leave an indelible and positive mark in their memory about your competence as a financial adviser. And not only is this approach more effective, you’ll probably enjoy it more too.

Activity 6
The average marketing/prospecting email open rate is now around 5%. Assume your management wants you to continue this prospecting method, identify some of the downsides of this strategy, and some alternative prospecting methods which may have a better success rate.(Compare and contrast prospecting methods and management strategies).

Activity 6 Answer
When faced with client questions, concerns and objections, there are two key best practices to apply: → Articulate value early and concisely. You can mitigate the first objection above by simply respecting the prospect’s time and explaining what you want early in your communication. Every email, voicemail, and phone interaction should lead with an assurance that you won’t take much time, followed by a short (30 seconds or less, or one to two sentences), buyercentric, and customised value proposition. → Don’t sell the
product, sell the next step. It doesn’t matter if the prospect is ready for a buying conversation yet. How could they be? It’s possible they’ve only just learned about you and your product from this call. Don’t get into a product conversation yet. If they ask a product question, recommend that you show them in the next meetin

Activity 7
Analyses a range of low interest personal loans, and identify any strengths and weaknesses.(Analyse a range of relevant financial products and services, including their strengths and weaknesses).

Activity 7 Answer
Personal loans, like all financial products, come with both advantages and disadvantages.

On the one hand, personal loans have lower interest rates than credit cards.

On the other hand, using a credit card to pay a bill or take out a cash advance is a lot easier than going through a formal loan application process.

With that in mind, let’s examine the pros and cons of personal loans in more detail.

The pros of personal loans
Imagine you’re suddenly hit with a large bill. Maybe a family member has just been rushed to hospital or you’ve had to conduct emergency repairs on your home.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

A personal loan can be a handy way to get a big chunk of money in a short period of time.

Some people might consider it the only place to turn if they don’t have enough spare capacity with their credit card or mortgage offset account.

Another advantage of personal loans is that the average interest rate is often about five percentage points lower than the average credit card interest rate.

That’s why some people use personal loans to escape a credit card debt trap.

The idea is that you take out a lower-rate personal loan to immediately pay off all of your higher-rate credit card debt.

The personal loan contract will have a structured repayment plan, which offers two benefits. First, you’ll see light at the end of the tunnel. Second, you’ll be forced to pay off the debt in regular instalments.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

But a word of warning: cut up your credit card. Because if you use it to run up more bills, you’ll now have both a credit card and a personal loan to pay off.

The cons of personal loans
Going through a formal loan application process can be annoying and time-consuming.Borrowing money through a credit card is much easier.

In some instances, it can even be cheaper.

If you take out a personal loan, it will always cost you in the form of interest and/or fees. But if you borrow money through your credit card and then repay this debt in full during your interest-free period, you won’t have to pay a cent in borrowing costs. Of course, that’s a big if, because not everyone has the discipline or financial capacity to successfully implement this strategy.

That highlights the big problem with personal loans – that many people who use personal loans do so because they spend too much and save too little.

Taking out a personal loan doesn’t solve this problem. In fact, it makes it worse, because a personal loan forces you to spend even more money in the form of interest and/or fees.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

Activity 8
Explain the term ‘cross selling’, in relation to financial products.(Describe the key features of sales and marketing techniques).

Activity 8 Answer
To cross-sell is to sell related or complementary products to a customer. Cross-selling is one of the most effective methods of marketing. In the financial services industry,examples of cross-selling include selling different types of investments or products to investors or tax preparation services to retirement planning clients. For instance, if a bank client has a mortgage, its sales team may try to cross-sell that client a personal line of credit or a savings product like a CD.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

FNS40815 Finance And Mortgage Broking Assignment 1 Certificate IV- Australia.

1.Cross-selling is the practice of marketing additional products to existing
customers, often practiced in the financial services industry.
2. Financial advisors can often earn additional revenue by cross-selling
additional products and services to their existing client base.
3. Care needs to be taken to do this correctly in order to stay clear of regulators and protect the client’s best interests. Advisors who simply make referrals in order to receive additional incentives may find themselves on the receiving end of customer complaints and disciplinary action.
4. Up selling is a sales tactic in which an upgrade or a high-end version of a
product or service is promoted.
5.Wells Fargo was fined more than $185 million and refunded more than $2.8 million to customers for its cross-selling scandal.

Excellent Assignment Help

We Aim At:

  • Lowest Price.
  • 100% Uniqueness.
  • Assignment Fastest Delivery.
Call Now : +61 363 877 039
Read More :