Marketing Goal
Build your retail loan portfolio by selling equity lines and/or loans to customers and new prospects.
Target Market
The mailing list could be comprised of both existing customers and new prospects. The in-house list would be existing customers who do not have an equity loan/line of credit with the bank. New prospects would come from WordCom’s data sources and could include home purchase information. The demographics of the list selection would be altered slightly, depending on the loan vs. line emphasis.
Program
Equity loans/lines are still one of the most popular and practical products offered by banks to help consumers meet their financial needs. One of the challenges in bank marketing is taking a financial concept and translating it into real, personal terms for the individual prospect.
- Timing: These sales messages can go out up to four times per year when the consumer could most benefit by the extra source of funds: around the holidays (before or after), in the spring, early summer and in the fall.
- Message: The customer has built equity in their home that may be available for use in helping to manage their finances. One approach could use variable data to bring home the message. WordCom has developed a special Intelligent Target Marketing program called Potential Borrowing Power. This program effectively takes the concept of equity lending and translates it into real dollar terms for each customer or prospect by using calculations of home value, equity, and LTV.
- Package: The package can vary from a postcard or self-mailer to a personalized letter (including the variable dollar calculations).
Results
This powerful message is combined with the benefits of the equity loan/line in a colorful marketing program that has proven to be successful. Average response rates mailing to new prospects range from .5% to 1.5% and mailing to existing customer groups could double that result — depending on the rate, timing, and economy.
Case Study: Equity Loan »
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