Case Studies:
Building Home Equity Payment Loyalty
In an economy where many homeowners are experiencing negative equity, it was critical to develop a strategy for payment loyalty and retaining a long-term relationship with home equity customers.
Opportunity:
A national full-service financial institution recognized the importance of working with home equity customers who may be struggling with payments, or are concerned about the negative equity with their home equity loan or line balance.
Insights:
As these customers face choices about making payments or refinancing, it becomes critical to maintain a strong relationship with each of them.
- We need to address their current situation and help them identify the best solution, whether it's a modified payment schedule, refinancing or simply letting them know we understand and we're there for them.
- We need to educate customers on the many payment solutions, the importance of maintaining a good credit score, and assure them we'll be there for them now and in the future.
Execution:
Heinrich developed an integrated communications strategy that included direct mail, telephone scripts (in- and out-bound) and email. A communication plan was designed for three target segments — those with positive equity, those on the border, and those with negative home equity. Based on the customer's behavior, the messages are modified to reflect our understanding and "we want to work with you" personal tone.