Here at CFMG Capital, we’re now approaching 10 years of operation. During that time, the business has evolved significantly from a start-up style land syndication business, to now being a fully operational developer in Victoria, NSW and Queensland with our own unique funding platform via our CFMG Land & Opportunity Fund.
Andrew Thomson - General Manager
In that time, we’ve had just under 1,000 individual investors place their trust in us and had a tick under $100 million worth of funds invested in projects we manage. While some clients have just begun their investing journey with us, we also have clients who have been with us since the start – and actively invested with us for nine+ years. As our business has undergone significant change in the last two years, we’ve been thinking more and more about our relationship with our investors and how to best communicate with them. This is balanced by our desire and actions in this period to attract new investors as the business has expanded.
In the first six-to-eight years, we focused on delivering our various projects and developing a transparent system of reporting to investors through regular updates and also our Online Investor Portal that provided live statistics on each project. As we re-aligned our interests with investors through the launch of the CFMG Land & Opportunity Fund, the need for this live reporting became a little redundant as a result of the fixed return structure – but even today, the portal remains live and reports the same information, as well as being a useful and simple window for our clients to make any updates to their personal information.
There was no strong focus during those early years of raising additional capital (or ‘sales’), as we weren’t taking on additional projects. However, over the most recent two-to-four years, CFMG Capital have successfully launched 10 new projects. To launch and fund these projects, we were fortunate enough to have a large and loyal existing investor base who simply re-invested funds back into new opportunities, while we also managed to introduce close to 200 new investors.
As a result, we’ve now found that each time we launch a new opportunity via the fund, a huge proportion of the required capital is quickly subscribed from our existing investor base. This will likely continue and as projects are concluded, we expect the available pool of capital just from our existing investors to potentially be more than is required to fund new opportunities - unless we can successfully acquire more development sites that suit our model.
This is where the question of balance comes in. Do we continue with our sales efforts to attract new customers, or should 100% of our focus remain on retention of our existing customers? If our clients are so happy, they keep re-investing in every new opportunity – do we need any new customers at all? Often circumstances change, and while we would love the re-investment rate to be 100%, it’s not quite that high. We are also well aware that with over 80% of invested capital in our opportunities coming from SMSF’s, if we don’t have an opportunity ready for re-investment, our very savvy clients will soon find somewhere else to place their funds and be potentially lost, simply due to timing!
This is an age-old challenge in any sales and customer service environment, and as any Australian will tell you – when dealing with a bank, telco, insurer or even electricity supplier – the customer service experience at the point of sale is far different to what you experience after being a loyal customer for many years…. I’ve even had success over the years in ‘dialing 1’ for sales when I call up a service provider, simply because I know I’ll have a shorter wait time on the phone than if I select ‘customer service’!
Here at CFMG Capital, we pride ourselves on delivering not just an attractive investment return, but also a hugely positive experience for our investors. One of the most important measures of the CFMG Capital success story now and into the future is the high degree of loyalty from our investors and partners. This loyalty exists because we take the time to ensure the interests of investors are at the forefront of everything we do, we take time to ensure we listen and respond to investors needs and most importantly – deliver on our promises.
So at the end of the day, while we will continue to welcome new investors – we will remain unapologetically customer focused – because as the saying goes, the best advertisement for your business is another happy customer.