It’s no secret that for the past 9-12 months the mortgage market has been suffering from a large decline in purchase money transactions. This has forced the Banks, Credit Unions and IMBs to zero in on the primary factors responsible for the extremely low capture and recapture rates across the industry; 5% and 14% respectively. These factors include: the need for accelerated pre-decisioning, lead scoring, effective leverage of channels, and personalized targeting. Effective solutions to these will create meaningful gains in new originations. Below we’ve outlined three approaches to managing them.
Leverage Your Channels Effectively
Leveraging your existing marketing and digital channels to engage your existing clients is essential and predicting which potential clients to market to, when to approach them, and what information to bring to their attention. Better use of data will help leverage channels and focus on nurturing the potential customer and their needs. A recent study by Equifax with Forrester Consulting revealed that approximately one third of banks and credit unions are collecting general information and data from common customer engagement channels; however, fewer than than 50% of them are using it to better understand customer intentions and goals, improve the overall customer experience, or appropriately market to the customer.
Get In Front Of Your Customers Sooner
Pre-decisioning and predictive lead scoring will allow institutions to bring personalization to the home buying process through either marketing or analytics. To successfully combat the reduction in business and lack of leads, institutions should create a joint initiative of the two across the business. Making use of data collected from online portals and mobile apps, for example, will help institutions capture the attention of potential home buyers and harness their business. A structured and data-based approach can be the distinguishing factor to customers – this approach reduces noise and helps nurture the relationship between the customer and the institution.
Personalizing Consumer Content
Institutions are able to incorporate different types of data-based differentiated content into their marketing approach to nurture their potential clients and see an increase in overall retention rates. Content such as video and personalized engagement experiences will empower the customer and create a more fulfilling experience. We need to see institutions across the banking industry put customer value at the forefront of their personalization efforts. Automation and artificial intelligence are already significant in consumer banking, but can be used more efficiently to speed up approval wait times and processing times for banks and institutions. This content based on properly collected and deployed data can create improved targeted videos and digital experiences, highly relevant material, and create a frictionless experience for the customer. Senso.ai’s platform utilizes this valuable consumer data to proactively contact and engage the potential home buyer and create a nurturing experience. Properly applying these consumer insights will not only help institutions capture the attention of potential home buyers, but will work to establish trust and loyalty between the institution and its customer- ultimately increasing customer retention rates.
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