Challenge
A provider of consumer loans and mortgages encountered a challenge with the low effectiveness of its online campaigns. Despite the high number of visits to the website, conversion of users to customers was low. Potential customers in particular were leaving the site after an initial review of the offer, without submitting a loan application. The lack of personalization of the offer was a key factor lowering the conversion rate.
Action
The company decided to implement the iPresso marketing automation system with a focus on personalizing online offers. The process was broken down into several steps:
- Collecting user data
iPresso began tracking user behavior on the website, monitoring clicks, pages visited, time spent on the site, and demographic data (such as location).
Users were automatically segmented based on their credit preferences, such as preferred loan amounts, repayment terms and type of collateral.
- Personalized offers on the website
Dynamic content was implemented on the website that adapted to user behavior.
For customers interested in short-term loans (e.g., up to 12 months), personalized cash loan offers with a quick decision were displayed.
Those browsing for mortgage offers received automatically customized loan calculators based on average property prices in their location.
Based on previous interactions, the system also customized messages, such as “A special offer for you - 5% off on your mortgage interest rate!”
- Personalized emails
The marketing automation system sent personalized emails based on user activity on the site.
If a customer was browsing for a mortgage, the email included customized offers based on their location and preferred loan amount.
Users who abandoned the loan application form received a reminder with a one-click option to complete the application.
- Segmentation and testing
Customers were segmented, such as young customers looking for a loan for their first home, families looking for larger real estate loans, and those interested in small cash loans.
A/B testing of various messages and offers was conducted to see which elements most influence purchase decisions.
Results
- The conversion rate increased from 1.5% to 4.2%, which translated into an additional 3,500 loan applications per month.
- Thanks to better tailored offers, the average amount of mortgage granted increased by 18%.
- Personalized emails achieved an open rate of 55% (compared to 30% before implementation), and the click-through rate (CTR) increased from 5% to 12%.
- Automatic reminders and ease of continuing the loan process reduced the average application time by 16%, which reduced the number of abandoned forms by 32%.
- Through personalization and customization of its offerings, the company saw an increase in its customer loyalty score (NPS) from 40 to 65, which translated into more repeat business.
