As the economy struggles to recover, an increasing number of consumers have begun to take payday loans. The Pew Center on the States recently reported that an average of 12 million Americans take cash advances from short-term lenders annually.
As more borrowers seek their services, financial institutions must raise their visibility. Without a proper marketing campaign, a payday lender may lose potential customers to its competitors. One of the advantages these businesses have is the ability to use promotional giveaways the same way banks and credit unions do.
For regular borrowers
The Pew Center also reported that the average borrower takes eight loans per year. Repeat business is only a good thing if your client returns to your institution. You should find incentives for your loyal customers so that they don't seek out an another business' services.
While consumers are attracted to low interest rates, payday lenders can't reduce their charges without hurting their finances. A rewards program that offers small gifts for repeat business, however, can provide sufficient motivation for borrowers to stay with one financial institution.
Due to their loyalty, regular customers deserve more benefits than new clients, so they should be given larger promotional items as tokens of appreciation. You can give them calculators so they can budget their finances while accounting for their loans or you can give them branded coffee mugs as a nice gesture. These are gifts that wouldn't necessarily be given to leads, so your patrons may appreciate them more.
For potential clients
With so many people taking payday loans, institutions must reach out to consumers and raise brand awareness. Creating exposure can be difficult, however – especially if a lender isn't sure how to create a lasting marketing campaign.
Distributing promotional marketing products allows a business to put its advertisements directly into consumers' hands. Print and broadcast messages can easily be ignored and don't last long, but tangible gifts are held onto and can raise a pay lender's visibility in the long run.
Giving every incoming customer a pen is a simple method for increasing your marketing presence without developing an expensive campaign. Instead of advertising to every consumer, you're only sending information to likely leads who have come in and inquired about your financial services.
Advertising on pens isn't flashy, but potential borrowers hold onto the items so they won't forget about your company. Lenders can leave pens around their establishments for anyone to take or have employees personally distribute the branded gifts to every consumer who asks about their loan options.