Increase fee income, loan extensions, and loyalty among existing loan customers.
The mailing list would be comprised of consumer loan customers selected by payment history and amount of loan payment.
- The Message: This mailing is a warm and friendly communication that offers the customer the opportunity to skip a loan payment during traditional periods of tight finances. For a fee ranging from $25 to $50 (depending on state laws), the customer is given the option of skipping one of two predetermined monthly payments. Using variable data, they can be told the exact amount of the loan payment.
- Timing: This program can be run one or two times per year. The two best times to conduct this mailing are either before/after the winter holidays, when expenses normally run higher, or in early summer to cover vacation or school expenses.
- Mailing Package: This personalized mailing would consist of a clean and professional letter that includes the customer’s specific loan amount and a personalized reply coupon authorizing the action.
The fee for skipping a payment ranges from $25 to $50, with most banks charging $30 or $35. Generally, response rates for this program average 10% to 20%. The immediate benefit is fee income. For example, a 10,000 piece mailing with a 15% response rate and $30 fee would bring in $45,000 in fee income. This offer also generates a feeling of goodwill from your customers, thereby maintaining and solidifying the relationship.