Mortgage Industry Should Look Beyond Millennials for Opportunities
It is true millennials are by far the largest demographic group ready for buying homes. Born between 1982 and 2004, this generation is around 83 million in the US. However, two elder generations are as closely populated as the millennials: Generation X, around 65 million and Baby Boomers, around 76 million. Gen X and Baby Boomers as prospects Baby Boomers are investing more in mortgage today, compared to what they did a decade earlier. As about 2.1 million Baby Boomers live with their families (grandchildren in their 20s), the younger generation is found more dependent on elders for mortgage-related decisions. Moreover, Gen X has long finished paying their education loans. They can be targeted for home loans; they will go for it more readily. Why Baby Boomers? Around 23% of the total US population is Baby Boomers, a section looking towards retirement. The new loan borrowing table (reverse mortgage) for Baby Boomers now allows spouses to keep the house, as long as they pay the insurance, taxes, and association costs. Also, the Federal Housing Administration (FHA) through their Home Equity Conversion Mortgage (HECM) purchase allowed eligible seniors to use a reverse mortgage to relocate or downsize home purchasing. What makes Gen X qualify? Another generation showing promises in mortgage lending is Gen X, says a report of National Association of Realtors (NAR). The average Gen X buyer is 41-years-old and earns a little less than $105,000. One of their major focuses is on buying larger homes so that they can accommodate the entire family. With about 75% of Gen X in the U.S. (approx. 50 million people) using the internet, information on consumer lending can be disseminated to them really fast. In the middle of all financial crises, this generation is coming up as one extremely powerful and stable group. Of course, one of the main reasons why mortgage lenders target millennials is their immense proximity to technology. About two-thirds of them regularly use the internet on their mobiles. That proportion is only slightly lower for Gen X, and Baby Boomers are at just below 50%. These proportions have been measured from their entire populations in the US. Gen X and Baby Boomers cannot be mistaken to be less compatible with data-driven advertising, online property browsing, and mobile banking. Hence, Lenders can use mortgage software technology and achieve much more comprehensive business returns by targeting not just the millennials, but Gen X and Baby Boomers as well.
Ensuring Loyalty With Personalization
It is no secret that consumers appreciate that personal touch. It is in building brand loyalty, and digital marketers do understand that. Personalization, today, has reached a stage beyond simple log-in and log-out messages. Big data has enabled companies to read the minds and understand behaviors of consumers. Brands now have access to consumer profile, purchase history, internet browsing behavior and several other significant aspects. This makes it easy for marketers to aim and shoot across their message. Tailored-content is the talk of the advertising town. It’s all about breaking from the clutter and making yourself heard. With the emergence of sophisticated content and programmatic technologies, personalization tools can now analyze user behavior in real-time and instantly deliver targeted content across multiple user channels. Several industries are actively focusing on personalized content to attract users. One of the verticals fast setting the benchmark is the retail space. It has been observed that retailers who use personalization as an integral part of their strategy have seen an increase in brand growth, metrics and bottom line. How retailers are effectively incorporating personalization to build sustainable brand loyalty: Personalized product recommendations: Based on buying records, retailers today, send out product recommendations and information on new launches via emails, texts or communicate through social media to customers. Consumers are grouped according to their browsing history and online behavior. Basis this data, retailers shoot targeted content to consumers in order to retarget, remind and create an inclination for purchase. It’s a great opportunity for cross-selling and upselling. Email marketing: It is a terrific way to generate leads and convert more prospects. Retailers actively send promotional mailers about products and discounts to a select group of people to induce them to engage and buy. Personalized discounts: Such offers take sales to an altogether different level. A great example of this can be seen in how e-commerce websites segment their customers based on their product purchase history and the kind of money they usually spend on buying. The companies then offer discounts or freebies to lure these customers into buying more. Personalization in the digital world is all about getting to know your customers and enticing them with the right message at the right time. Real-time technology combined with powerful content makes for an invincible formula that ensures better conversions and brand loyalty.