Member experiences, whether in-branch or online, have the power to drive decisions. Every choice you make as a credit union should be centered around your members' needs and how you can fulfill them with a simultaneous concentration on generating more loans. It's possible to achieve both a high level of member satisfaction and a positive ROI. It's just a matter of your approach to auto loan recapturing and refinancing.
Every credit union and the community they're part of is different, which means that choosing a recapture plan is not a one-strategy-fits-all kind of situation. Although we know you were hoping for a solid "this approach is the best" answer, the route you choose boils down to your CU's specific needs, challenges, and expectations. Here are five key steps to follow during the decision-making process:
Of course, your CU is looking for more loans, increased wallet share, and an influx of new members. However, it's important that you pinpoint what your primary objective is.
Setting both short and long-term goals ahead of time is critical, as it helps you establish what resources you'll need and determine the most effective method. Common variables for measurement include:
Ask yourself what you'd like to accomplish in a 30, 60, and 90-day period for each variable. Then ask yourself if those goals are achievable for each approach (in-house, partnering with a vendor, paying a vendor). This should help you choose between in-house or partnering with a fintech company. And, as you watch your campaign progress, make sure you take benchmarks at set times and measure them against your projections. From here, you'll be able to analyze and alter them to obtain better results.
It's also important to decide how much money you want to spend and whether you'd like your payment to be upfront (when you purchase immediately via contract) or ongoing (a performance-based plan where you pay based on a percentage of every closed loan). Once you make a decision, that should direct you toward keeping everything in-house vs. outsourcing to a vendor.
Your staff members have a variety of skill sets, but there may be certain skills that are missing. It's wise to consider that in-house programs will require a lot of time from your team, including everything from sales marketing to administration. When you choose to work with a vendor, you can ease the burden on your employees. Also, make sure to take inventory of other resources associated with advertising, list building, and direct mail, and determine whether you're seeing results or wasting valuable time and money.
Now, take all the decisions you've made along the way and combine them into a single, solid marketing plan. Decide which employees are handling what tasks, the timing of everything, and the factors involved. Make sure both your marketing and lending teams work cohesively together, and if you've chosen to work with a vendor, keep them looped in as well.
Now you know the steps involved in choosing an auto loan recapture strategy, which can help you decide whether to stay in-house or look for an outside partner. After determining your primary objective, solidifying your goals, setting a budget, analyzing your resources, and creating a marketing plan, you can take action to benefit your members with additional savings!
Here at FLEX, we've collaborated with SavvyMoney, a fintech company offering targeted lending campaigns, valuable insights at the click of a button, pre-approved loan offers, loan lead identification, and more. Are you ready to embrace today's technology, so you can better serve your members? Download our eGuide today!