Espenschied Business Group - Full Spectrum Lending




			Full Spectrum Lending




			www.fullspectrumlending.com


			Adapted in part with permission from Permission-Based E-Mail Marketing That Works! By Kim MacPherson.


			Full Spectrum Lending is a division of Countrywide dedicated to providing nontraditional loans and loans to clients with less-than-perfect credit. At any time, 10 to 20 percent of consumers may fall into this nontraditional or subprime category. This is a mortgage niche that has been largely ignored online and includes debt consolidation, home equity loans, and refinancing to reduce monthly debt payments. E-mail is central to the transaction in this segment to keep the company name and subject at the top of the consumer's mind, as well as to build trust, which is very central to creating a sale in this market. A retention e-mail campaign is targeted to these consumers who need home loans for refinancing or debt consolidation. Full Spectrum offers these services and distributes a monthly e-newsletter which includes easy-to-read information about the lending process and available loan products, plus quick calculators and clickable links to other helpful resources.


			Objective




			The objective is to increase loan applications from among visitors drawn to the Full Spectrum website and to convert them to a borrower, with cross-selling and brand building also important. Each month, the last campaign's statistics are reviewed to develop the goals for the next campaign.


			Offer




			The offer is a free analysis of how much a consumer could save in monthly payments through a Full Spectrum loan. To receive the analysis, prospects complete a simple interactive form. With the information gathered on the form, the prospect's financial position is analyzed and recommendations are made. If prospects choose to subscribe to the newsletter, they receive monthly updates on products and special offers along with educational articles. There's often a considerable lag time before a consumer is ready to apply for a loan, so the newsletter helps Full Spectrum Lending stay in touch.


			Format




			HTML and text. Approximately 75,000 to 80,000 e-mails are sent quarterly. Segmentation is completed in-house, but the company outsources the sending functions. The company decides what information goes in the newsletter based on the profile of the customer. These campaigns are focused on providing value-added information and tips to the audiences, helping to bring them back to the sites, and keeping the name, products, and services fresh in their minds. For example, someone without a pet isn't going to receive an offer for pet insurance. The e-newsletters promote special promotional offers, such as special discounts for completing a loan application online, or its Mortgage Independence Day contest, which gives prospects the chance to win several months' worth of mortgage payments. The subject line of the e-mail-newsletter is personalized to add a human touch to an ordinarily anxiety-producing product.


			Lists:




			Lists are developed internally from selected prospects, customers, and business partners. Buying external lists hasn't been successful for Full Spectrum.


			Results:




			HTML tends to always far outperform the text mailers. Writing so customers can scan the e-mail quickly improves responses, as does making it easy for them to find what they're looking for. CTR is 12 to 14 percent on average. Conversion rates are 2 to 3 percent on average. The average refinance loan amount is $130,000. Interestingly, e-mail campaigns produce a higher average refinancing amount than that generated by Full Spectrum's offline campaigns.