Generating loans when times are hard:

There are many people out there still taking out loans.  You just have to find them.  The days of loans walking through the front door are over.  The people that are buying have just changed their buying patterns.  Now instead of buying that new car because they feel like it people are waiting until they need it.  Many people out there still have equity in their homes that can be used.  There are investors buying foreclosed real estate that need the funding.  And, there are still first time home buyers’ taking advantage of the low rates and low housing prices.  You just need to reach them and speak with them.

Start inside first by taking a deep dive into your current membership.  Who are your most profitable members?  Who has taken out loans in the past with you?  Who has a car loan that has recently been paid off or will be paid off in the next year?  Same goes for real estate.  Who has a mortgage that is going to be paid off in the next five years?  Who has a mortgage with you but not a home equity and vice versa?  Who has significant deposits with you but no loans?  These are the people you want to reach.  These people are your potential buyers.  Direct mail alone will only give you a 1% – 2% return.  To maximize your return you need to follow up with a phone call.  Talk to your members.  Find out what their current needs are.  They will appreciate the phone call and you will start building loyalty. 

The buyers that are not currently your members are a little more difficult to attract, but not impossible.  Blanket direct mail marketing will not give you the results you need.  It will cost you more money in time and materials than the small amount of loan income the campaign would generate.  Depending upon what type of loans you are looking for will determine the buyer profile you will need to set.  For example, if you want to increase your auto loans create a refinance campaign and look for people who have a recent auto loan.   If you are looking for home equities look at the people who have owned their home for over 15 years.  If you wanted mortgages look at investors, first time home buyers, and people living in higher end rentals.  I could go on all day about different ways to slice and dice your potential buyers to get the most out of your marketing dollars; maybe I will use that as my next blog topic.  The main point for this post is to make sure you understand the importance of profiling your market and designing custom marketing plans tailored to your buyer’s needs.  Make sure to always follow up your direct mail, email, or tweet with a phone call to increase your return.  The buyers are out there, go get them!

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