We live in a fast-paced world filled with convenience and options. If you don't offer what people want, they will quickly leave and find it elsewhere. This mindset also applies to online loans; 97% of online loan applications are abandoned. Good news is doing things like eliminating friction and providing excellent customer service will help you lower that percentage and increase your online loans.
How to Eliminate Friction
Multiple Payment Options:
One of the best ways to eliminate friction is to offer various payment options. Having these options gives your customers the control and convenience they desire, and in return, it makes your business appear more professional and trustworthy. Having these options is vital to providing a great customer experience. And 75% of consumers say that they are willing to pay more for a better experience.
Mobile Friendly Website/App:
Recent research shows that consumers look at their smartphones an average of 150 times per day. Having a mobile-friendly website allows you to meet your borrowers and potential borrowers where they are; on their smartphones. The more comfortable you make things for your customers the more likely they are to follow through with an application.
Having an app is another excellent way to simplify things. Did you know that 78% of adults in America own a smartphone? And 43% of them regularly use their phones to manage finances and make payments? Customers are more apt to apply for a loan when the option to make payments online is available. And honestly, being able to make an online payment is expected these days. Having a user-friendly app is an essential aspect of providing a five-star borrowing experience.
When you provide your borrowers with the payment options they desire on a user-friendly website; they can do everything they would in a branch from the comfort of their own homes. And that's what people want.
Excellent Customer Service Starts with Knowing your Customer:
Knowing the demographics of your current borrowers and future borrowers are essential because it helps you understand your target audience. When you know who your target audience is you can pinpoint how you should market to them. The key is to figure out a marketing strategy that is convenient for you and your customers. Do they use social media? Do they use email? Do they prefer to use mail or texting? Knowing these things will save you a lot of time and a lot of money.
Having a social media account is a great way to help you better engage with your customers and build stronger relationships. To get more online loans, you need to let people know that the online option is available. Through this online and social media engagement, you can inform people of your online lending services.
You can also do a lot of marketing (promotions, holiday deals, etc.) and follow-ups through social media. But, if you are going to use it, you need to use it correctly. That means posting consistently and responding to comments as much as you can. People want to feel like they are talking to other people, not a robot. Responding and being as personal as possible (while maintaining a professional atmosphere) will give your borrowers just that.
Communication with your customers or potential customers needs to be done in a way that will make them feel comfortable; 64% of people prefer texting over a phone call, and 91% of people prefer a text over a voicemail. Including texting as an option for payment reminders could be a great way to engage with your customers.
If someone abandons their online loan application, following up with them via phone, text, messenger, or email could be a good idea. Communication builds a relationship, and people are more likely to become a customer and stay a customer if they feel comfortable, appreciated, heard, and wanted. Human connection is what makes this world go round, so long as you are forming this connection in a non-abrasive way.
Online lending is an ever-growing market. And while there is a lot of room for growth and improvement in this field, the key to success is offering options, keeping things simple, and providing a convenient experience.