You may feel like you’ve had to market consumer loans with one hand tied behind your back.
You’ve been shackled by consumers’ lack of understanding of credit scores, limited loan products and the inability to accurately predict consumer behavior. Fortunately, technology and years of trial and error in the consumer loan marketing space have changed all that. Today’s approaches take credit score confusion off the table, allow you to promote all your loan products and closely monitor consumers’ loan shopping behavior. The results can be triple-digit returns on marketing investment and significant loan portfolio growth.
The timing for new loan marketing solutions couldn’t be better.
The lending market is strong, with mortgages growing, auto loans on the rise and the demand for personal loans continuing to climb. Still, the economy isn’t as robust as anyone would like, stock market volatility is the norm and in loan marketing, the segments delivering the greatest return are limited in size. All of these challenges make it more crucial than ever to optimize every loan marketing dollar and every consumer experience. A great way is to combine behavior-triggered campaigns and multi-product, recurring prescreen campaigns.
Behavior-triggered marketing lets the consumer tell you what they need, when they need it. Here’s how it works for loans:
- Monitor account holders’ and non-account holders’ credit behaviors through TransUnion®, Equifax® and Experian® to see if they’re out shopping for home loans, auto loans, credit cards, etc. Keep in mind that multi-bureau monitoring can yield up to 70% more triggers than monitoring just one bureau.
- Apply prescreen criteria to target those who meet your underwriting criteria.
- Within 24 hours of detecting activity, send an email and direct mail.
- Follow up by phone with a message tailored to the consumer’s needs to close the deal.
In a typical financial institution, 3-5% of account holders shop for loans in any given month.1 Trigger campaigns for mortgages, auto loans, credit cards and personal loans generate a 5-8% response on average, with higher numbers coming when a professional marketing services firm like Harland Clarke makes the follow-up calls. These are impressive results, but best-in-class financial institutions who are serious about loan growth also go after consumers who aren’t shopping for loans, using a new approach called multi-product, recurring prescreen campaigns.
Multi-product, recurring prescreen campaigns use standard criteria across a financial institution’s loan product portfolio to put preapprovals in front of qualified consumers all the time rather than running multiple campaigns with each promoting a single product to the same consumers. Here’s how it works:
- Each quarter, run a refreshed account holder/prospect file against a default set of credit criteria, such as auto.
- Take these consumers and criteria to the credit bureaus to see who passes (typically about a third of account holders).
- Evaluate those who passed for additional credit products such as boats, personal loans and credit cards to come up with an offer file.
- Market personalized, multi-product offers through omni-channel campaigns using direct mail, email, phone, text and Internet and mobile banking.
Multi-product, recurring prescreen campaigns typically generate 3.5% response and the average pull-through from application to booking is usually 85%.*
No single loan marketing program can stand alone to meet all your needs, but multiple programs working together can unleash your full potential to significantly grow new loans, increase account holder retention, gain new customers and boost customer satisfaction.
 Harland Clarke analysis of client data
*Many variables impact campaign success. The information on earnings and percentage increases contained in this post is provided for demonstrative purposes only. Harland Clarke does not guarantee or warrant earnings or a particular level of success with a campaign.