The fintech industry in the U.S. has witnessed tremendous growth in recent years, with 10,000 plus startups. Presently, the majority of Americans use fintech apps to enjoy the benefits of financial inclusion, such as access to banking services, account operations, and loans.
Online loan providers use a wide variety of marketing tactics to get customers and sell their products. Trust is crucial because most people view the financial industry as a necessity. Therefore marketers are constantly coming up with exciting strategies to generate leads and acquire customers.
This discussion explores top marketing strategies online loan providers use to attract customers. Read on;
Provide a user-friendly mobile platform
As you already know, online loan providers offer financial products via internet-based platforms such as websites and apps. To increase their outreach and customer base, the providers must ensure their mobile and web-based platforms are user-friendly. Such a platform must be easy to navigate and understand so that prospects and customers can easily access and utilize the services.
Additionally, it can help improve customer satisfaction as customers can perform basic tasks such as loan requests and make payments efficiently. They can get all the information they need in real-time, increasing customer retention and driving growth for a fintech company.
Search engine optimization
Online loan providers use Search Engine Optimization (SEO) to increase their customer base. SEO involves optimizing a website by using relevant keywords to improve its ranking in search engines. Through this effort, the number of visitors to a website may increase, thereby improving conversions.
By implementing SEO, fintech can improve its brand visibility and attract prospects to the website. Other SEO-related strategies include providing high-quality content and building backlinks. By investing in SEO, loan providers have a better chance to reach a broader audience and gain a competitive advantage, which are major drivers for growth.
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Use of social media
It’s common for online loan providers to use social media channels to provide loan products and reach prospects. Platforms such as Instagram, Twitter, Linkedin, and Facebook are effective for marketing campaigns because they allow advertisers to target ads to specific groups of people based on occupation, age, family status, and interests. Further, social media enables online loan providers to reach a broader audience efficiently and cost-effectively.
Sometimes, online lenders can promote the easiest loans to get approved for on their social media platforms. Such loans are often viewed as low-lying fruits because they are instant and may not have stringent requirements and often are instant.
Social media marketing involves a variety of tactics that boost engagement. It involves creating content that resonates with the audience and posting it on the channels to achieve branding goals. Some strategies include sharing posts, hosting contests, giving prizes to winners, and interacting via messages, likes, shares, and comments. The end goal is to build solid relationships and drive the sale of loan products through online engagement.
Affiliate marketing is a performance-based strategy in which businesses reward affiliates for every customer brought on board. In the context of digital loan providers, affiliates are rewarded by promoting loan products to potential customers. Often, affiliates may promote these products via various platforms, such as their social media accounts, email lists, or websites.
When a customer clicks on an affiliate link and applies for a loan, the affiliate may get a referral commission. This strategy is popular among new loan providers trying to gain traction in the market and reach a wide audience.
Affiliate marketing is low-cost because businesses only pay affiliates after successful lead generation or sale. Therefore, online loan providers can get a favourable return on their investment without spending a lot of money.
It’s also a targeting marketing approach since affiliates concentrate on a specific audience depending on certain aspects such as demographic, gender, and age. Through affiliates, an online loan provider is viewed by prospects and customers as credible, so endorsement becomes a valuable asset.
Creating strong brands
Building a strong brand is vital for any business because it helps in increasing customer loyalty and trust. Online loan providers develop strong brands by creating a unique value proposition that communicates the benefits of loan products to customers.
By doing so, loan providers differentiate themselves from competitors and gain trust. Online loan providers create a consistent brand image so customers can easily recognize it. Often, they have unique logos with similar colours and fonts across their marketing materials.
Building trust is vital for online loan providers because their customers will feel more confident that their financial data is secure. Also, being transparent demonstrates their commitment to security and customer privacy.
A strong brand is also an avenue to engage with the audience and build lasting relationships. It can be through getting feedback and responding to inquiries in a helpful and timely manner. Online loan providers consistently seek opportunities to connect to customers, build trust and loyalty, and increase retention.
Using online reviews
Online reviews are an important strategy that online loan providers use to make more customers sign up for loan products. In this digital era, most information is available online, and most customers buy a product or subscribe to a service after reading reviews. These reviews provide prospects with valuable data about others’ experiences with a particular product or service.
Digital loan providers display positive reviews on their social media pages or websites to convince the audience that their products are exceptional and previous customers had positive experiences to share. They also respond to reviews to demonstrate their commitment to providing great service and building trust. Online loan providers also use reviews to get feedback about their products and identify areas they need to improve.
To reach a wider audience, online loan providers use creative marketing strategies that capture attention. From catchy slogans, and enticing visuals, to discounts and giveaways, online lenders have multiple strategies up their sleeves. Besides the initial customer attraction strategies, digital lenders also employ SEO, online reviews, and social media marketing to retain customers and build long-lasting trust.