Spring is finally here! When I think of spring, I think clean, fresh, and new. I also think of home improvements, since spring is a great time to give your space a spruce-up. Whether you clean by power washing your house and walkways, re-stain your deck for a fresh look, or landscape and plant new flowers and shrubs, improvements don’t need to be costly. But there may be some projects that are larger out-of-pocket expenses like painting your home, resurfacing your driveway, or installing a deck or fence.
For the more expensive home repairs, many need to consider taking out a personal loan. Not sure where to look for a personal loan? Check your mailbox!
The Use of Direct Mail to Market Personal Loans is Growing
More than 2.9 billion personal loan direct mailpieces were mailed by lenders in 2017. That was a 24% increase compared to 2016, and a 30% increase compared to 2015. According to marketing research firm Comperemedia, the top personal loan mailers last year were LendingClub, OneMain Financial, Prosper, Best Egg, and Goldman Sachs. Of those 2.9 billion mailpieces, 95% were sent as Marketing Mail (formerly called Standard Mail); 94% of those were letter packages; and 93% of those letter packages were acquisition.
Lenders are finding more and more ways to use direct mail to reach homeowners looking for personal loans to improve their homes. Here are a few recent personal loan direct mail trends, as identified by Comperemedia and Competiscan:
- Lenders are promoting loans to make home improvements.
- Lenders are supporting new homeowners with loans to help with moving costs.
- Lenders are using messaging that promotes the speed and ease of their loan processes.
Best Practices for Marketing Personal Loans with Direct Mail
While the above stats certainly indicate a market for offering personal loans to homeowners, capturing their attention is as important as identifying them. Lenders can enhance their acquisition direct mail efforts to potential personal loan applicants with these proven tips:
- Utilize home improvement imagery. Consider placing home improvement imagery (like construction, painting, repair work, etc.) on the outer envelope. Carry that theme through to your messaging with a tagline like, “Make your home improvement plans a reality with a Personal Loan from ABC Lending.” Corresponding imagery should also appear on the letter itself.
- Include a faux check. Make applicants’ home improvement plans spring into action with a “pre-approved” faux check format that includes the dollar amount of the potential home improvement loan so the potential customer can get a clear visual of the funds they will receive. Be sure to follow the Fair Credit Reporting Act (FCRA)’s rules for pre-approved offers.
- Use promotional cards. Affix a personalized card to your letter highlighting your fast and easy personal loan process. Provide a clear call to action and highlight the ways recipients can get in touch, such as your website, mobile app, and a toll-free phone number.
I am already making my list of projects to accomplish this spring and considering several personal loan offers to make it happen. Make your personal loan direct mail program bloom by contacting IWCO Direct’s experienced direct mail team today!
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