Leverage Your Data to Boost Home Equity Marketing ROI

September 27, 2017CCG Financial Marketing Blog

If your home equity campaigns are lagging, the solution could be as close as your database.

As people stay in their homes longer and property values rise, home equity products are more in demand. If you’re not feeling the love in the form of heightened response to your home equity line and loan marketing campaigns, the problem could be your audience. And the solution could be as close as your database.

Home Equity Marketing Strategies

You may be familiar with the marketing concept of getting the right message to the right customer at the right time. It’s a particularly critical concept for home equity promotion. After all, if you’re sending offers to someone who isn’t a homeowner, someone who has a too-high loan-to-value ratio or someone with a non-qualifying credit score, then you’re talking to the wrong people, at the wrong time — and your message is not going to resonate.

In other words, you’re wasting money if you market to customers and prospects who are poor home equity financing candidates. But by leveraging data and segmentation strategies, you can identify the best candidates and better target your messaging and offers. The result? Reduced upfront expenses by restricting your mailing list and increased response from a higher-quality pool. Combined, of course, those two can yield a higher ROI.

Use Data to Deliver Results

There are some specific data points that can help you identify top candidates for your home equity marketing campaigns. These include:

  • Homeowner status
  • Age and status of current mortgage, including balance, monthly payment and whether mortgage is with your financial institution
  • Home value, which can be estimated with an automated valuation model (AVM)
  • Estimated current loan amount (combined with AVM, this will let you calculate loan-to-value ratio)
  • Estimated current available equity
  • Existing home equity line or loan (if one is present, you can then look at the amount financed, the amount utilized and the monthly payment to determine your messaging, such as activation, utilization or refinance)
  • Estimated Invitation to Apply Credit Risk Score (learn more)
  • Life event or life stage data (e.g., marriage, divorce or birth of child can help inform your messaging)
  • Area house price indices (as area home values rise, a homeowner’s ability to borrow may increase)
  • Real estate owned (REO) properties (to exclude from your mailing)

Home Equity Promotion Ideas

With this type of data, you can provide more personalized — and therefore highly relevant — information to individual prospects and customers. For instance, you could show a real-life estimate of how much money that individual may be able to borrow through home equity financing, as well as their estimated monthly payment based on your interest rate. Likewise, you could send a message to someone who has a home equity product at another institution and may be entering their repayment period soon.

If this level of customization sounds cost-prohibitive and time-intensive, relax. Laser printing techniques and dynamic fields allow you to automate much of the personalization and make the whole endeavor cost-effective. That said, unless you have a strong in-house data analysis team, you’ll want to reserve some of that savings for the data work that forms the backbone of this approach to home equity marketing.

The Payoff

By effectively leveraging your data, you can better target high-quality candidates for your home equity marketing campaigns. And that can mean improved ROI, more conversions — and more customers filling your portfolio.

Could your team use assistance with the heavy lifting of data sourcing, analysis or segmentation for your home equity promotions? We can help. CCG’s financial marketing experts have four decades of experience helping financial institutions deliver the right message to the right customer at the right time. Request a free consultation or call us at 800.525.0313 today.