Exploring the World of Audience Modeling

March 28, 2017
Where will you get your next customer? The idea of using data to create audience profiles to become more customer centric in marketing campaigns should be at the forefront of answering this very question. We need to change the way we think about targeting our customers from a farming mentality to a hunting mentality. This paradigm shift is real not just suggested anymore. Foot traffic is minimal, refis are slowing down and mortgage purchases are increasing so there is a demand for better intelligence.  
 
How well do you know your current customers? For mortgage lenders to better understand their customers, they should consider the use of data and predictive analysis to identify needs, and lifestyle trends that will help them promote not only the right product but at the right time. The use of data in this industry is behind the times, and in order to keep up we need to reconsider marketing campaigns of past and look to new ways to better micro target our customer. Avande announced the results of a survey of more than 500 business executives and IT leaders, which revealed that “the investments companies are making to manage big data are paying off. Eighty-four percent of respondents believe big data helps them make better business decisions. Seventy-three percent of companies have already used data to increase revenue by growing existing revenue streams (57 percent) or creating entirely new sources of revenue (43 percent). Evidence shows that big data has become pervasive-more employees in businesses have greater access to increased technology options for managing and analyzing data.”
 
Using data has less obvious benefits. In a highly competitive market where retaining and recruiting great loan officers has become more challenging, what are you doing to differentiate yourself from other financial institutions? Using data and providing audience profiling to your loan officers allows higher conversions, better income potential and higher retention. 
 
When looking to expand branches, or position yourself in different geographic markets … how are you determining what city, area, and/or state makes the most financial sense? What if you used demographic, residential and financial data to determine similar customers to that of your successful branches? If you could identify the number of eligible refinances in a given zip code area, would this change the way you market to that area?
 
How are you currently marketing to specific demographics? Do you market to Millennials in the same way that you do 35-50 year olds? If so–you most likely are not seeing the results you would hope for! Millennials consume information in a much different way, shouldn’t your campaigns reflect this? What if you could leverage data to provide audience profiles of Millennials that are ready and qualified to buy? How would that change the relationship dynamic between your financial institution and the realtors you work with? From conversations that I have had, the realtors run the show. Realtors determine whether to refer their client to you or to another bank. If anything goes wrong in the loan process, it’s the financial institutions fault and that jeopardizes future referrals. This scenario quickly changes when you have the Millennial profile. The financial institution has the leverage. The financial institution decides which Realtor to use not the other way. 
 
What if you could use lifestyle data to network in the community to increase relationships and retention of your current bank customers? If you knew which consumers golfed, worked out, traveled, or were looking to fix up their house, you could use these profiles to build rapport and industry relationships to better cross serve your customers and gain new customers. 
 
Are you ensuring that you are CRA compliant in your marketing efforts? Are you doing your due diligence to make sure that marketing campaigns are fair and appropriate? Are you blindly sending out mass marketing collateral pieces?
 
Maybe now is the time to consider the use of audience modeling and data to increase profitability, gain trust, build relationships, ensure better marketing efforts and grow your customer base. 
 
Leah Roling is director of product development for Morelity. Leah is an accomplished sales/product executive with 20-plus years of experience driving profitability and market share for the largest collegiate publishers. In partnership with the executive management team, she creates leading-edge customer support solutions in line with the organizations mission and goals while providing best-in-class products and services for academia across the U.S. Leah is excited to get started in her new role at GOOI Global as director of Product Development. Leah graduated from UNI with a bachelor of science in economics and finance, masters in exercise physiology. When she is not collaborating with her customers, and team she is immersed in activities of three boys and enjoying quality time with her husband. She enjoys reading, running, yoga and the occasional minute of silence. She believes in people and encourages customers and colleagues alike to be brave, imaginative and decent.