Are you blanketing your community with loan offers? Financial institutions are the heaviest users of direct mail marketing; 71% of banks and credit unions use direct mail, according to the DMA Response Rate Report 2016 by Deborah Haskel. Nearly half of companies (46%) plan to maintain their direct mailing levels, while another 35% plan to increase.
That’s a lot of competition and community financial institutions can’t compete with the volume of Capital One with its tagline that’s earned its way into the American vernacular: What’s in your wallet? Community banks and credit unions must be more efficient, nimble, and crafty. Using credit data to fine-tune your marketing targeting is a great way to achieve this.
Targeting through pre-screening potential borrowers by credit score helps weed out those consumers you won’t be able to help or who aren’t your target market. Your community financial institution will save on marketing as well as earn a greater return on investment through targeting. Your resources are limited, but with a loan acquisition company like Ser Tech earning you a 350%+ return on investment, you can get the most bang for your marketing buck.
Prescreened offers ensure that once you’ve distributed the message, it’s more likely to result in a good match between the consumer and your financial institution, so hard-to-come-by resources, like time and money, are not wasted.
Prescreening for offers also sets you up for tracking credit migration. If after the consumer has accepted a credit card, for example, the borrower’s credit score trends downward, your community bank or credit union can rein in the amount available to borrow. GDS Link’s Marketing Services can track credit migration, so contact us today!
Extend your prescreened marketing efforts from mailers to email and social using platforms like Facebook Custom Audiences or Google Customer Match, The Financial Brand advised. Of note: just 10% of email marketing was prescreened loans in 2017, according to a separate report in The Financial Brand, so you can stand out with a creative, prescreened email marketing campaign.
GDS Link’s Marketing Services campaigns for auto loans, credit cards, mortgage loans, home equities, and student loan refinancing pair nicely with Triggers to identify prescreened borrowers who are in the market shopping for a loan, so your bank or credit union receives consideration from the potential borrower.
Our clients have experienced 5% to 12% response rates because we help you reach the right consumers when they need you the most! Click here to learn more.