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3 Ways To Trigger Loan Marketing Success

Alerts, seamless experiences, and turnkey deployment comprise this holistic approach.

After years of belt-tightening, consumers are borrowing again at a record pace. Additionally, since the recession, consumers have been very confident taking on more overall debt.

Auto loans and leases produced record-setting volume. Revolving consumer credit loans that are given as a line of credit to be used when the consumer needs them, like credit cards is inching towards $1 trillion, and overall outstanding household debt in the US reached $13.15 trillion at the end of 2017.

In addition to their increased economic confidence, consumers are more trustful of nontraditional channels, i.e., digital, to purchase products and loans. These disruptors contribute to increased lending competition, propelling financial institutions to be more resourceful in identifying, targeting, and acquiring creditworthy consumers.

Why A Holistic Approach To Marketing Makes Sense

Today’s consumer is more informed than ever with more lending options from which to choose.

That’s why a holistic loan marketing strategy one that both actively reacts to individuals currently shopping for loans, as well as proactively creates interest among those who are not makes so much sense in today’s wide-open economic climate.

An always on approach makes it possible to reach consumers in all stages of the decision-making process, increasing the likelihood of conversion and sustained loan growth.

Execute well on event-triggered marketing and you can expect your message to receive five times the response rate of non-targeted push messages.

A Three-Part Holistic Strategy For Loan Marketing Success

In a perfect world, your account holders would never even think to inquire about a loan from a competing institution and you’d have the resources to get in front of every prospect. But economic and technological times have changed across multiple channels with myriad borrowing options now available. You can, however, effectively compete for your share of consumer loans with a three-part strategy that includes reactive alerts, proactive engagement, and quality customer experiences.

  1. Set up an alerts program to receive notification from multiple credit bureaus whenever a credit inquiry is submitted for your account holders. Using all three credit bureaus is best, as it will provide 75% more coverage. Sixty percent of all loan shoppers will commit to a loan within a week of a credit bureau inquiry. Monitoring these inquiries and then countering with a quick, preapproved offer whether mail, email, or phone will help you stay one step ahead of the competition and win market share.
  2. Adopt a turnkey program that sends multiple loan offers for home equity, auto, credit card, personal, and other loans through multiple channels online, direct mail, mobile, email, branch, and phone to account holders and prospects who meet specific underwriting criteria to access anytime, anywhere.
  3. Create seamless, convenient experiences. Put loan offers at consumers’ fingertips to accept anytime, anywhere. You will be creating quality customer experiences that can strengthen account holder loyalty, reduce attrition, and extend your brand.

Jennifer Stoner is Product Manager, Marketing Solutions, for Harland Clarke.

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
May 14, 2018

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