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End the HELOC Marketing Struggles. Use Data To Tap Your Current Member Base

DataTree Insights: End the HELOC Marketing Struggles. Use Data To Tap Your Current Member Base

Credit unions face many marketing challenges. With a typically limited marketing budget, it's difficult to reach key customers to make them aware of the benefits and features that your credit union offers. Marketing options, such as utilizing Facebook ads have limited impact on their own. Many credit unions are turning to data to refine and better target their marketing efforts to target the right members at the right time. 

 More HELOC Opportunities Abound
Credit unions are finding that one of the most lucrative opportunities available to them today within the mortgage sector is the Home Equity Line of Credit, HELOC. These loans are highly beneficial today for a variety of reasons:

  • More people than ever are remodeling their homes rather than buying new or trading up. As MarketWatch points out, the number of people shying away from home sales is growing while the number of people remodeling is increasing.
  • HELOC are ideal now that home values are on the rise. Many people who do not have access to other lines of credit are seeing the amount of equity they have growing. And, it is because of this increasing value in homes that more people than ever are seeking access to HELOC’s.
  • Credit unions benefit as well. HELOC’s are another option to bring in new members to the organization, as well as providing a valuable addition, boosting current member offerings.
By targeting existing credit union members, marketing costs are far lower compared to other methods. However, many organizations are faced with the challenge of determining which current members are going to respond to their offers.

Traditional HELOC Marketing Does Not Work
Let’s say you wish to increase the number of HELOC’s you originate this year. You know there is demand for these loan products, and you know that market values of homes in the area are on the rise. This creates an opportunity for members of your credit union to take advantage of these offerings.

You could try traditional marketing methods such as creating displays for your offices and flyers for your members. You can market through social media. You can even create localized membership drives that attract people with low HELOC rates and your great member service. However, every dollar you spend on this type of marketing could be more effective if you tap into data first.

Data Provides Credit Union Member Insight
Data is a tool that can help generate answers to one key question - which of your current credit union members already have access to a home with high equity? By leveraging data, you can take that immense amount of information and create a strategy that works for your goal. With this data, you can learn the following:

  •     Which of your members own homes
  •     The value of your members' homes
  •     Which members are a better fit for equity loans

How Data Provides the Marketing Boost You Need
Credit unions can acquire the information needed to consider HELOC marketing opportunities to specific members. By targeting offers to those most likely to respond, you will yield better results. Not only does this boost your bottom line, but it also helps improve your position as the only financial institution your members need to meet their needs.

Contact us today for your free DataTree trial.

Source Reference:
"Is It Better to Remodel or Buy a Bigger Home?" MarketWatch

"5 Financial Marketing Trends Driving Conversations and Conversions" The Financial Brand

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