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Get A Bigger Piece of the Loan Pie

By on July 24th, 2013 in Marketing

With budgets getting smaller and competition getting fiercer, financial institutions will need to be more creative in order to stand out. The way to do this is to combine strategies such as credit based marketing and variable data printing to successfully define and market to your target audiences.

Through credit based marketing, an institution can secure loan leads from all three credit bureaus – Equifax, TransUnion, and Experian – and only market to prospects who are currently looking for loans. And since it is credit based, you determine what qualifications the prospects require to meet the goals of your financial institution.

Once you have your data and list of leads, be able to create a direct mail piece using variable data printing means having the ability to send different personalized messages to each member or prospect. According to test campaigns, personalized messages generate up to a 27% increase in responses than a standard generic campaign would generate.

Video Webinar

In today’s Webinar Wednesday episode, our Vice-President of Sales, John Dudek, highlights new and creative ways for getting more loans, and moving your institution out from the middle of the pack, and to the front of it.

Video Transcript (Highlights)

What is the Recipe for Success?

The Way It Used to Be

  • “Broadcast” Marketing – Same message delivered to all recipients – Promotion/offer not relevant for all – High quantities and low response rates
  • The Result: – Low cost per piece – High cost per response

The Way It Is Now

  • “One to One” Marketing – Specific message delivered to specific demographics – Promotion/offer relevant to each recipient – Lower quantities and higher response rates.
  • The Results: – High cost per piece – Low cost per response

Maximize Your Budget Dollars

  • Marketing Budgets are Being Cut.
  • Return on Investment is Being Closely Analyzed.
  • Results are Imperative. “The Cost per Response” is Much More Important then “The Price per Thousand.” And It Should Be!

Target or One-to-One Marketing

Reduce Your Expenses. Improve Your Results.

  • Step 1: Take a look at what information is available.
  • Step 2: Collect this information and identify your target.
  • Step 3: Put the data to use and launch your campaign.
  • Step 4: Measure the results and improve on the concept for your next promotion.

Step 1: What Information Do You Have?

Data from your core processing system and other internal databases.

  • Names/addresses/e-mail addresses.
  • Account types (savings, checking, auto loans, home loans, etc.).
  • Balances.
  • Ages.
  • Branch preferences.
  • Services.

MCIF Systems or DataFlex

  • Provides ability to collect additional demographic criteria.
  • Identifies trends in activity, new accounts, new account holders, etc.
  • Advanced analytic capabilities.
  • Householding.

Data from External Sources

  • Data Enhancement and High Quality Mailing Lists.
  • Ability to target specific demographics including location (zip codes, counties, carrier routes or distance radius), age, sex, income, home ownership, and MANY other criteria .
  • Lists are constantly updated for improved accuracy.
  • Purchase prospect lists or append data to your existing account holder lists.

Step 2: Identify Your Target

Assemble the data.

Examine the demographic and psychographic traits of account categories or specific account types. For example, you’re likely to see a significant difference between the characteristics of people with CDs and Money Market Accounts than the people with personal loans.

Break your contact list into smaller segments with these specific characteristics. Each group requires different promotional strategies and marketing mixes because each group has different wants and needs.

Match your product and offer to the appropriate segment(s).

Step 3: Launch Your Campaign

VDP Marketing Methods

  • Direct Mail Letters or Postcards.
  • Personalized Ads on Statements/E-Statements.
  • Personalized Newsletters.
  • Personalized Envelopes.
  • E-Mail Marketing.
  • OnBoarding Matrix Campaigns.

Targeted Direct Mail

  • Personalization (Gets Attention) – Can improve response rates by up to 27%.
  • Make your offer more relevant by using specific data • Extend pre-approval offers for auto loans, credit cards, home equity, mortgages, etc..
  • Simplify response methods by pre-filling applications or reply cards – Laser letters, postcards, self-mailers are all viable direct mail campaigns at ANY quantity, no matter how small.

E-Mail Marketing Campaigns

  • Permission based.
  • Cost effective: inexpensive but NOT free.
  • Complete tracking capabilities to measure results.
  • Communicate with your online users.
  • Allows direct interaction with your web site.
  • “Immediate” delivery and real-time reporting.
  • Collects important data for future correspondence.
  • Send a message with minimal turn-around.
  • Coordinate with other marketing efforts.

SMS Text Messaging

  • Segment list by any demographic criteria, account relationships, etc.
  • Text messages can be personalized
  • Fewer than 20% of email messages are opened; within 15 minutes of sending a text blast, over 95% of your subscribers will have read the message every time your cell phone beeps or buzzes, how long does it take you to read the text message?
  • Opt-in process similar to e-mail marketing.

Get A Bigger Piece of the Loan Pie!

Let LKCS Assist You.

  • LKCS has all the Ingredients You Need.
  • LKCS has the Recipes to Help You Succeed.
  • LKCS has the Chefs and Experience to Create, Organize and Control the Recipe’s.
  • LKCS can Deliver Your Pie’s to the Right Clients.