Email marketing is an effective tool to reach affluent prospective borrowers and alert them to refinance opportunities, report shows
According to the Q2 2019 Refinance Mortgage Consumer Profile Report published by DMS Consumer Finance, seven of the top 10 refinance consumer segments in Q2 2019 were categorized as affluent or high income, compared to four out of 10 purchase consumer segments in the same quarter.
“Affluent consumers with excellent credit are looking for opportunities to save on monthly payments, pull out equity for big projects, reduce the length of their mortgages or access funds to pay down higher rate loans, and refinance popularity has a strong propensity to continue throughout the rest of the year,” the report reads.
Affluent consumers considering refinancing their homes have slightly above average email usage, making them prime targets for email marketing campaigns.
Email marketing continues to grow
According to Statista, there were 233 million email users in the U.S. in 2017, and the number is projected to climb to 255 million by the end of 2020. Given the high volume of email users, it’s no surprise brands continue to turn to email marketing to reach and engage prospects. Over the last five years, spend on email marketing in the U.S. has increased by nearly 50%, with more than $3 billion projected to be spent on email marketing in 2019.
Email marketing continues to impact consumer behavior
Why do so many advertisers continue to turn to email marketing in an increasingly digital world with seemingly endless marketing options? Because it works.
According to a 2017 survey of adults in the U.S., email marketing played a major role in the consumer purchase process by giving prospects additional incentives to purchase, making consumers aware of new brands, helping them select between various products and reminding them of purchases to make.
According to the 2019 LeadsCouncil Benchmarking Report, email marketing was the top media channel used for lead generation and it also was one of the media channels that received the highest “excellent quality” and “very good quality” designations among lead buyers and sellers. Because of this, email marketing should continue to be a key component of refinance mortgage marketing campaigns.
As the economic landscape continues to evolve and interest rates continue to decrease, loan originators targeting prospective refinance borrowers should strive to stay in front of their prospects via email. By offering the latest news and advice, originators can boost their perceptions as valued resources. In tandem with other channels, including social media and paid search, email can help originators can stay top of mind, particularly with affluent consumer segments who may be considering refinancing their homes.
By building and leveraging robust first-party databases, mortgage originators and marketers at large can control the messaging and frequency of their outreach efforts. Advertisers can segment their databases and personalize their emails, creating targeted interactions to highlight relevant offerings at scale.
Featuring trends on geographic loan distribution, credit scores, home market values, mortgage balances, top consumer segments for the refinance mortgage market and more, the Q2 2019 Refinance Mortgage Consumer Profile Report highlights refinance mortgage market audience trends for the period of January 2017-June 2019, with an emphasis on April-June 2019.
