With 138 million people that are financially challenged in the US, the need for responsible installment lending is more prevalent than ever. Despite the shift to digital, there are still a large number of potential customers that prefer the traditional interaction with a human being and value personalized service. Even though consumers have a high desire for online transactions, having an existing relationship and convenient branch location ranked as more important for personal loans than any other asset class in feature importance. Here is what’s working in installment lending and what’s not:
- Reaching out monthly to current and former customers with installment loan direct mail offers. With regular touchpoints, customer retention can be greatly impacted by using direct mail and customer intelligence to determine which prospects are most likely to react to your offer or refinancing opportunity
- Add email to these monthly touchpoints. Marketing across channels has become the expectation in the marketing landscape, and installment lending communications are no exception. By appending emails to your prospecting efforts or encouraging current and former borrowers to opt-in to email communications, you can reinforce your direct mail campaigns and create a separate lead generation pipeline.
Here’s what’s not working:
- Buying The Least Expensive Marketing Services Possible. Whether this involves skimping on data, or losing focus on the user experience for website or loan application landing pages, taking shortcuts in your marketing will come directly off your bottom line. Creating a mobile-friendly, user-centric online experience will increase conversions, and thus increase revenue.
- Blanketing the market with the same type of offer. Different customer segments respond differently to different offers. Mix up your live check mailings, prescreen offers and invitation to apply campaigns. By using multiple lists and offers, you can test and learn from the best responses. The simple solution: test, test, and then test some more.
What are you seeing work or not work in installment lending? Feel free to leave your thoughts in the comments section below.