Growing competition in the auto loan industry and continuing falling interest rates are making it increasingly difficult for lenders to differentiate themselves from new borrowers, and sometimes even existing borrowers. Although some things are beyond our control, such as industry trends and business cycles that impact interest rates and consumer demand, credit unions can find creative and local ways to promote their car loan program.
- Advertising on social networks
Social media has become a necessary part of the marketing mix for many businesses as more and more organizations understand that consumers from millennials to baby boomers are using social media. According to an article written by CU Times, 40% of baby boomers regularly use Facebook and 31% use Twitter. As you can imagine, those numbers increase exponentially for their younger counterparts, Millennials and Gen Xers. So the moral of the story is that if your credit union isn’t already on the networks social media, it’s time to seriously add it to your marketing strategy, and if you’re already involved in social media, consider social media ads as an ingenious way to reach your car loan target audience.
Unlike traditional print advertising, social media ads allow you to get very detailed and specific information about the recipients of your advertisements. You can target by location, age, gender, interests, etc. It’s also easy to set and adjust your budget based on your ad performance. You have full control over who sees your ad and can increase your budget or deactivate a campaign with one click.
- Offer complementary products or services
Frankly, low rate auto loans cost a penny a dozen. Consumers can drive down the street and see dozens of advertisements for low-rate loans from just about any lender they choose. To make your loan program stand out from the competition, consider bundling complementary products with the loan. Here are some examples :
- One year of free car washes from a local supplier
- Paintless dent coverage
- Tire and rim repair
- Roadside Assistance
Offering complementary products is just another way to create a compelling auto loan offer for borrowers who are, no doubt, regularly bombarded with dozens of offers.
- Create a sales and service culture
Your employees are your best advocates. Create a culture that encourages them to support your loan program, taking every opportunity to let all members know about the benefits of your auto loan. A sales and service culture encourages everyone at your credit union to treat all products and services as personalized opportunities that can serve members. A sales and service culture trains employees to effectively build relationships with their members to better equip them to recognize life events, such as the birth of a child, as opportunities to offer products and services adapted to their changing needs.
To learn even more about ways you can market your loan program to existing and new borrowers, check out our free ebook, Stand Out From the Auto Lender Crowd!