Loan customers are harder to target than most potential clients. Every product and service sold has a preordained, generalized common ground. If baby products are being advertised, new, somewhat youngish maternal focused content is used. Athletic gear has a completely different, more masculine attitude in profiling. Loan recipients make up a uniquely versatile base. It is not easy to designate a marketing strategy when your clientele list could consist of anyone. ruth is, anyone, of any age, background and income bracket is a potential loan recipient. This makes it difficult for lenders to determine how to grow their customer base.
One way to decide how to brand online lender’s products is by separating potential loan recipients into age groups. Luckily, dividing age groups into generations is very common these days. The theory is that the computer age, with all it’s advances and capabilities has created a very distinct sociological profile. Differentiating between Boomers and Millennials and all those in between is not that difficult. Looking at these groups in terms of what their abilities are and what they require, can help potential lenders zero in on a correct marketing strategy. Delving into the age differences, can help lenders come up with unique products for the specific groups, based on their needs.
Breaking Down the Loan Customers in to Age Groups
The Clarity Report is a yearly summary analysis designated to understand the unique trends in the lending sphere. Using its latest data, some of the information can be used to analyze the potential loan customers. In fact, a better understanding of what a client is looking for is an important tool for lenders. Obviously, all clients are looking for a stable, dependable lender. A lender whose intentions and terms are clear, and is flexible enough to apply change if the unforeseen occurs. Beyond that, many clients appreciate the ability to overview their loans, through continued access to its details. Yet, what distinguishes between the age groups? What would make a young person choose a specific lender over another?
According to the Clarity Report, Millennials have a completely unique set of standards when looking for loans. As the group with the smallest income, these 18-34-year-olds, are usually those in need of loans more than any others. They are the ones who are struggling with money management, paying bills and sometimes still paying off student loans. For these reasons, they are often weary of taking on further debt. Surprisingly, 65% of this group says costumer experience-a quick, simple, easy to understand loan, is most important when seeking a loan. Only 35% put interest rates first. Along with online loan management mechanisms, these are the things that appeal to the younger demographic.
The Older Generations
Generation X as potential loan clients are very different. Older and more savvy in handling money, they expect a more personal approach from their lender. In fact, the interesting aspect about these clients is that studies show they prefer personal interaction when obtaining a loan. While this age group, 35-54, has better credit and usually a larger income, the loan experience is still very important. Still, this group is much more aware of the importance of interest rates and focuses on good loan terms.
Indeed, interest rate is key for the older population. It might be the one defining element Boomer generation loan clients are after. A staggering 82% of questioned Boomers said interest rates are the one aspect they look at when seeking funding. This group definitely prefers personal interaction with the lender as a top priority. The 55-72 age group is the most financially established, and nearing retirement. They usually take time to research loan terms before taking out a loan, as they often know something about financial management.
Looking at the Numbers
While all people are unique and come with different attitudes towards money, separating loan clients into age groups can help lenders come up with specific enticing tools, depending on who they are marketing for. Millennials would probably appreciate a financial planning service and an easy way to keep track of their loan. Generation X loan applicants appreciate a good personal experience and Boomers put an emphasis on being in contact with lender. This specialized approach allows a lender a more in-depth approach to their clients. After all, lending is a delicate affair. You need to know who you are dealing with.