Last year, we surveyed more than 9,800 equipment buyers who financed equipment with a broker in 2022 about their intention to return to the broker for their next finance need and the dealer for their next equipment need. All buyers were introduced to the broker through a vendor relationship.
Here’s the breakout of the data:
| Industry | % of buyers planning to use the broker for their next financing need | % of buyers planning to use the dealer for their next equipment need |
| Transportation (Vocational) | 21% | 45% |
| Transportation (OTR) | 18% | 56% |
| IT | 5% | 72% |
| Restaurant | 30% | 80% |
| Construction | 12% | 43% |
| Medical | 3% | 52% |
| Machine Tool | 6% | 66% |
The lowest cost way to acquire new business is a high volume of returning business. The results above reflect a lack of loyalty that forces brokers to almost always be in the position of earning new business through acquisition of new names, which is the most expensive, difficult and least reliable way to acquire business.
Interestingly, dealer loyalty is quite high in many areas. This may reflect that some dealers may be driving repeat customers away from brokers if other options are present and brokers aren’t earning strong enough direct relationships as part of the first transaction to merit ongoing consideration.
The focus on customer experience and continued marketing to existing customers represents a powerful opportunity for brokers to achieve stronger repeat business.
Data obtained from Sawbux‘s Study Of Commercial Finance Activity 2023. Research for 2024 will be delivered through the secured finance sector’s new Secured Research and Data Solutions pulse and market research.
Secured Research is a joint venture between the publications, events and training capabilities of Monitor/ABF Journal and Sawbux, a leading marketing, research, data and analytics firm specializing in commercial finance. We’re combining the brand strength of the 50-year leading independent voice of commercial finance with a unique multi-million-dollar research engine that’s been in place serving finance decision-makers for more than 14 years. To learn more about how these research capabilities can be deployed for your company’s needs, contact us here.
