Pre-screened direct mail remains the most stable and predictive marketing channel for Banks, Credit Card companies, Financial Services and FinTech Lenders alike. If you like to control your own marketing channel, owning your customer’s attention and continue to have the rights to market to your prospects, pre-screened direct mail is the best marketing channel for you.
Pre-screened direct mail is where you acquire a prospect list with any major credit bureaus with a set of criteria, rules and sophisticated selection algorithms. Then work with high-end print shops that produced great looking creatives that are effective to test several champion-and-challenger pieces.
Then you need a team of experts to interact with delivery channels such as the United States Postal Services of FedEx to program the critical in-home dates. Sometimes in-home dates are overlooked but it’s critical when you are offering need-based finance products, where making the delivery on the right day of the week is critical to producing better results.
Today, there are two ways to capture your audience’s attention. Online search engines and mailboxes. With search engines, you are competing for their front page real estate and most of that real estate is occupied by companies paying top dollars to place advertising in front of search results. Even if you do decide to do digital marketing, the amount of money you will end up sending with respect to your return on investment is minimal. And there’s no one at these search engine companies that truly understands your business.
Advantages of pre-screened Direct Mail marketing
The biggest advantage of pre-screen direct mail marketing is access to credit reports of individual prospect that no other marketing channel allows you to do. This fact alone will help you target your audience with razor-sharp accuracy. That means that you no longer have to syphon through thousands of “leads” and only to find out most of them don’t qualify for your product due to varies credit based constraints.
With most of the online lead generators, the lead you purchased is being sold again to other prospective buyers. The fact that you bought the lead gives the lead generators more reason to sell it to your competitors. You end up being your own victim. Even if you end up converting this customer, the customer is bombarded with other offers and the customer might end up stacking themselves and cause a higher chance of defaulting.
The cost for direct mail marketing is surprisingly lower than search engine ad placement and/or buying leads from lead generators. Don’t let cheap lead cost fool you. Since you don’t own that customer, that lead you’ve purchased is also pursued by other competitors with tactics that might be unsavoury. Ultimately, the psychology of a prospect being invited to check out your product and services are completely different than someone desperate for financial products. Which would you lend to?